Greetings from MakerDAO! First, let’s all take a moment to celebrate that in just a few days, Maker will implement vaults and credit lines for Harbor Trade, ConsolFreight, and FortunaFi. Maker and Centrifuge are leading the way in real-world asset financing!
Maker became aware in mid-June that due to the fact that we trust Centrifuge to custody the DROP used to collateralize our loans, we were not automatically accusing liquidity rewards.
We understand this is likely an oversight in implementation. While we have no immediate plans for rewards Maker would have accrued automatically, Maker is at the point where several members of our DAO have suggested we reach out to the Centrifuge community to affirm that Maker should be able to collect these rewards at some future, unspecified point in time.
Based on our involvement with the New Silver pool, we estimate that Maker as a liquidity provider should have accrued (as of Aug. 4, 2021) 526,025.452 CFG/wCFG. I can provide the spreadsheet DAO members put together, and we understand this is an estimate because we didn’t know how quickly after an approval that changes in reward rates went into effect. When in doubt, we utilized the lower rate.
Maker is by far the largest provider of liquidity to the Tinlake platform, and that looks like it will only grow. We do understand, however, that there may be some operational/technical hurdles to delivering any rewards Maker has accrued. So at this time we are simply seeking a commitment to track Maker’s CFG rewards, and we can figure out how to deliver them to Maker’s custody at a later date.
Reasons to support Maker receiving rewards from past and future liquidity provision:
- Maker is a liquidity provider (the largest one!)
- Maker and Centrifuge have a close business relationship, and one built upon mutual trust rather than legal agreements with “gotcha” clauses
- There was no indication in past liquidity parameter changes that Maker was not a liquidity provider
- This gives Maker the opportunity to become involved in Centrifuge governance, and give our two protocols a shared, long-term future
- There is no obvious reason why Maker would be the only party on Tinlake to be excluded from sharing in rewards
- Demonstrate through action that the Centrifuge community values all DAI invested on Tinlake equally
Please feel free to comment below. Thank you, and have a wonderful day!