Merge pull request #1065 from makerdao/MIP102c2-SP23-amendment-PR

MIP102c2-SP23 amendment PR

MIP104/MIP104.md

@@ -250,9 +250,12 @@ The Enhanced Dai Savings Rate is a system to temporarily increase the effective
 
 The Stability Facilitators can take actions related to the EDSR through forum posts signed by their approved Ethereum address.
 
-Other parameters and mechanisms that are dependent on the DSR, such as crypto-collateralized stability fees, are affected by the EDSR. This applies to all crypto-collateralized Vault Types except for Spark Protocol.
+Other parameters and mechanisms that are dependent on the DSR, such as Native Vault Engine Collateral Stability Fees (SFs) and the Spark D3M Borrow APY, are affected by the EDSR.
+
+When NewGovToken and SubDAO farming comes into effect, DSR utilization will count both DSR use and NewGovToken and SubDAO farming use.
 
 Spark Protocol has a borrow rate spread that follows the Exposure Model methodology (14.3.1.3) and is defined as: 
+
 Spark DAI Effective Borrow APY = Dai Savings Rate (EDSR while active) + Liquidation Ratio Spread + Asset Spread.
 
 #### 3.2.2.1A
@@ -293,8 +296,6 @@ Spark Spread:
 
 As long as Spark Protocol remains near its maximum borrow limit, the Stability Facilitators can use the weekly governance cycle to propose to increase its Debt Ceiling to attract more users. If Spark Protocol falls below 200 million active borrowing for an extended period of time, the Stability Facilitators can use the weekly governance cycle to propose a decrease to the borrow rate spread to attempt to incentivize usage to increase above 200 million.
 
-When NewGovToken and SubDAO farming comes into effect, DSR utilization will count both DSR use and NewGovToken and SubDAO farming use.
-
 ##### 3.2.2.5: EDSR Upper Limit
 
 The EDSR Upper Limit acts as an effective limit to the EDSR, meaning that it can not exceed it even if the formula outputs a number above the limit. The EDSR Upper Limit can be altered by the Stability Facilitators via the weekly governance cycle.
@@ -303,13 +304,15 @@ The EDSR Upper Limit acts as an effective limit to the EDSR, meaning that it can
 
 ¤¤¤
 
-EDSR Upper Limit is: 5.25%
+EDSR Upper Limit is:
+
+- 5.25%
 
 ¤¤¤
 
 ##### 3.2.2.6: EDSR Utilization-Based Multipliers
 
-Each of the following EDSR multiplier tiers can be triggered by the Stability Facilitators based on the utilization rate. When first adopted, the EDSR begins at tier 1. If at any point in time the DSR utilization stays above the level needed for a different tier for a continuous period of more than 24 hours, the Stability Facilitator can choose to trigger the new tier, and a manual DSR adjustment must then be included in the next executive vote to account for the new tier.
+Each of the following EDSR multiplier tiers can be triggered by the Stability Facilitators based on the utilization rate. When first adopted, the EDSR begins at tier 1. If at any point in time the DSR utilization stays above the level needed for a different tier for a continuous period of more than 24 hours, the Stability Facilitator can choose to trigger the new tier, if doing so is not deemed harmful to user adoption, and a manual DSR adjustment must then be included in the next executive vote to account for the new tier.
 
 ###### 3.2.2.6.1: EDSR tier 1
 
@@ -342,9 +345,9 @@ The Core Stability Parameters update is subject to three different conditions de
 
 Core Stability Parameters must be updated at a minimum of 2 months since the last spell execution which included previous update in the next available executive spell
 
-#### 3.4.2: Base Rate Change Condition
+#### 3.4.2: Stability Fee (SF) Change Condition
 
-Core Stability Parameters must be updated when the Base Rate Change is greater than +/-5%, or when the Exposure Spread or Asset Spread change is greater than +/-10% in the next available executive spell
+Core Stability Parameters and Spark DAI Effective Borrow APY must be updated when the Stability Fee or Spark DAI Effective Borrow APY change is greater than +/-8% in the next available executive spell.
 
 #### 3.4.3: Stability Scope Language Amendment
 

MIP113/MIP113.md

@@ -871,11 +871,33 @@ This functionality is exceptional so that the Maker protocol can react to change
 
 The risk opened up by this exceptional functionality is a theoretical griefing attack on the IAM that prevents debt from being accessible in affected vault types.
 
-#### 10.2.8: SparkLend Specific
+#### 10.2.8: SparkLend Freezer Mom
 
-GSM Exceptions for SparkLend must be researched and implemented, which are required for mitigating extreme instances in the case of identified exploits which could result in loss of assets for users, Spark or MakerDAO.
+The SparkLend Freezer Mom contract allows Maker Governance to bypass the GSM delay to either freeze or pause any markets in SparkLend. The contract also allows the undoing of such actions for any market in SparkLend.
 
-GSM Exceptions should include but are not limited to Market Pause and Market Freeze supported by the research and argumentation.
+This functionality allows Maker Governance to react faster in an emergency. Freezing markets does not allow for new supplies or borrows, while pause restricts all market functionality, including deposits/withdrawals/borrows/repays and liquidations.
+
+#### 10.2.9: Smart Burn Engine Breaker
+
+The FlapperMom contract allows for the disabling of the Smart Burn Engine without the GSM delay.
+
+This functionality is available so that Maker governance can react to emergencies regarding the Smart Burn Engine.
+
+#### 10.3: SparkDAO
+
+Spark is one of the initial AllocatorDAOs which is focusing on developing crypto on-chain lending engines and will be governed by SparkDAO token holders to the extent and limitations allowed by the rules defined in the Atlas.
+
+SparkLend protocol is the first such engine, structured as a Conduit in the upcoming Allocation System. SparkLend will be adopted by SparkDAO once AllocatorDAOs are launched.
+
+The subelements below outline the governance security framework procedures specifically developed for the SparkLend Protocol.
+
+#### 10.3.1: Multisig Freeze of SparkLend
+
+In addition to the SparkLend Freezer Mom contract defined in 10.2.8, an External Security Access Multisig that allows for pausing and/or freezing SparkLend markets must be researched and implemented. The Multisig Freeze feature of SparkLend should exist alongside the SparkLend Freezer Mom contract, ensuring that the Maker community can take timely action in case of an emergency which requires immediate intervention.
+
+The implementation must be justified by research and argumentation. The solution must be implemented in a way where Maker Governance preserves the ability to disable the solution without argumentation and GSM delay, and preserves total control over the protocol.
+
+The solution can only be used in cases of extreme emergencies such as potential code exploits which have existential threat potential. The solution must be ratified by Maker Governance with an on-chain poll before being deployed.
 
 ## 11: SubDAO Governance Security
 
@@ -908,3 +930,7 @@ The first Aligned Delegate season lasts from the moment this Scope Artifact is a
 During bootstrapping, until the Scope Improvement Articles of each Scope Artifact are well developed, AVCs must focus on making Aligned Scope Proposals that improve the Scope Improvement Articles. ADs must not follow instructions by AVCs, through Aligned Governance Strategies or Aligned Scope Proposals, that cover subjects other than improvements to the Scope Improvement Articles and/or Scope Advisory Councils. Instead, for matters not related to Scope Improvement Articles and/or Scope Advisory Councils, ADs must vote according to their own understanding of Universal Alignment and the spirit of the Atlas in a way that best pushes forward the Maker Ecosystem towards the Endgame State and strengthens the Alignment Artifacts. ADs must make use of the ability of MIP102 edits to distinguish between Article 1 edits and General edits of Scope Artifacts, to make sure they follow their AVCs GSL instructions for Article 1 edits, and treat General edits separately.
 
 Additionally, all ACs must devote significant work and resources towards the development of an AI-enabled Next Generation Atlas that is machine readable and has improved consistency and data quality. PDs, RDs and Facilitators must all generate and publish output that brings the community closer to being able to properly adopt a Next Generation Atlas solution. PDs have the highest such responsibility, followed by Facilitators, and then RDs. If an AC in a particular category is not outputting work that is up to the same standard, and at the same frequency and volume, as the majority of the ACs in their category, they can be considered misaligned and derecognized by the Governance Facilitators after a warning. AVCs must devote the majority of their time and energy towards discussing and understanding how the Next Generation Atlas will work and how to incorporate AI efficiently into long term governance and AVC operations, as well as assisting in the creation of the Next Generation Atlas. This priority supersedes their other responsibilities, and if an AVC Member has been deeply involved in Atlas creation and improvement, they can be made completely exempt from other AVC duties, when qualifying for AVC Member compensation. This exemption is determined retroactively by a Governance Facilitator when calculating AC compensation, and guidance for obtaining the exemption can be provided in advance given specific, Atlas-related KPIs, published by a Governance Facilitator.
+
+### 12.5 Governance Security & Ecosystem Actor Embedding
+
+As a temporary bootstrapping measure, incubating Ecosystem Actor Atlas Axis will be embedded in Governance Facilitator-permissioned communication channels where spells-coordination work is performed. Atlas Axis will have no decision-making authority in the spells workstreams. The objective is solely to facilitate Atlas Axis’ preparation of comprehensive, robust and resilient Atlas data for Governance Security by enabling it to directly observe patterns and issues as they arise. This bootstrapping provision ends with the launch of NewChain.