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Rune Christensen: MakerDAO Founder’s ‘Endgame’ Proposal

Decrypt | Liam J. Kelly | Sep 3, 2022

Balancing on tight rope - Rune Christensen:  MakerDAO Founder's 'Endgame' ProposalNot If but When

  • It described the continued effects of the Tornado Cash sanctions, said the industry has “failed to show any kind of value to society,” and outlined two potential paths forward for Maker.
  • This also means that “at some point in the future, there is a high probability that Maker will be hit by a severe attack by global authorities targeting any attack surface they can find, through a process similar to what led to the [Tornado Cash] sanctions.”

Plan to Free-float Maker's DAI stablecoin

  • DAI becoming unpegged to the dollar is less an objective and more a symptom of making the protocol attack-resistant.
  • Part of Christensen’s “Endgame Plan,” another monumental proposal outlining a restructuring of Maker and its governance, would put a cap on how much of the project’s collateral is in Real World Assets, or RWAs.

See:  Vitalik: Designing Principles-based Stablecoins that (may not) collapse

  • Alongside assets like Ethereum, Wrapped Bitcoin, and Uniswap, small businesses can also securitize their own assets in order to mint DAI.  For example, Reif Financial Investments Inc. has collateralized real estate loans in exchange for DAI. Another company called Gig Pool has done the same with payment advances for various gig workers from Instacart, Doordash, Upwork, and the like.

“The path of decentralization means limiting our attack surface to physical threats, and specifically our RWA collateral as a percentage of the total portfolio. In the Endgame Plan, I put this limit at 25%,” he writes.

  • Christensen also argued for the introduction of a “negative target rate,” essentially Maker’s version of negative interest rates, to drop demand for DAI and increase its supply “as it becomes cheaper to generate [more DAI] with decentralized vaults such as Ethereum.”
  • Dropping interest rates also makes borrowing, or in our case minting more DAI, much cheaper.


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Cap how much RWA can be used as collateral while simultaneously curbing demand for DAI (and making it cheaper to increase the supply).

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