May 2021 reporting for Real-World Finance Core Unit
Current strategy
(no changes vs last month)
Our current strategy is to onboard $300M of real-world assets. While the long-term strategy is to simply invest in senior tranches of structured products rated by credit rating agencies, we recognize that it’s not currently possible in DeFi. We have a two-path approach. First, partnering with Centrifuge, we work on a smart-contract way of investing in structured finance. Second, we are investigating a Trust-based way to invest the MakerDAO balance sheet in the real world using real-world tools.
We also think that having a strong capital base (i.e. surplus buffer) will be important to disrupt the traditional finance world. As we recognize that people prefer to burn MKR while it’s seeing as cheap, we also work to inform the market and the community on the financial strength of MakerDAO. We think that if the market recognizes the financial prospects of MakerDAO, the MKR price will increase, giving more opportunities to consolidate the capital base. Such knowledge will also help Maker Governance make more scientific decisions.
Review
State of RWA at MakerDAO
A Parameter Proposal Group - MakerDAO RWA Committee was created to follow RWA.
Others collaterals
We have 4 collaterals that will be presented on June, 7th for a Governance Poll with a target to be in the June, 18th executive.
- [FFT1-DROP] Collateral Onboarding Risk Evaluation
- [HTC-DROP] Collateral Onboarding Risk Evaluation
- [CF-DROP] Collateral Onboarding Risk Evaluation
- [P1-DROP] MIP6 Risk Assessment: Alternative Equity Advisors DROP: US Agricultural Real Estate
The first three are already existing pools on Tinlake, the last one will be approved with a 0M DC increased to 20M after the SPV creation.
On 6S, we published a Preliminary Contracts Assessment. A Cayman dedicated law firm started to look at the Cayman part.
We continue to work as well on a generalized structure: Trust model - Work In Progress
Finance
(will be updated with the May financials when done)
Legal
Still on the work to onboard a US law firm to advise us on RWA as a whole. The first focus will be an audit of the legal structures of New Silver. It’s complicated to hire a law firm as the DAO is not a legal entity. I will use my own legal entity. We also tend to end up with blockchain lawyers first (as we are categorized blockchain) and not structured finance lawyers.
Research
Publised an article on Stablecoin design - Liquidity
Marketing & PR
Data infrastructure
Not much expect a new query to follow where is DAI
Public work
- Parameter Proposal Group - MakerDAO RWA Committee
- Research paper - Stablecoin design - Liquidity
- Trust model - Work In Progress
- DAI Dashboard
- 6S - Preliminary Contracts Assessment
- [FFT1-DROP] Collateral Onboarding Risk Evaluation
- [HTC-DROP] Collateral Onboarding Risk Evaluation
-
[P1-DROP] MIP6 Risk Assessment: Alternative Equity Advisors DROP: US Agricultural Real Estate
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Team composition
@SebVentures - Facilitator
@williamr - Full-time contributor RWA
@Philinje - Part-time contributor RWA
@jameskmccall - Expert for farmlands
@christiancdpetersen - Expert for energy-related project finance and legal
@Aes - Financial analysis
Core Unit budget
You can find the ledger of the RWF Core Unit multisig here . 27,899 DAIs were spent, mainly on compensation.