The Governance Facilitators, Sidestream, and Dewiz have placed an executive proposal into the voting system. MKR/SKY Holders should vote for this proposal if they support the following alterations to the Sky Protocol.

If you are new to voting in the Sky Protocol, please see the voting guide to learn how voting works.

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Executive Summary

If this executive proposal passes, the following actions will occur within the Sky Protocol:

• Phase One of the MKR-to-SKY upgrade will be executed as described below.
• Protego will be added to the Chainlog.
• A Spark Proxy Spell will be executed.

Voting for this executive proposal will place your MKR/SKY in support of the actions outlined above.

Unless otherwise noted, the actions listed above are subject to the GSM Pause Delay. This means that if this executive proposal passes, the changes and additions listed above will only become active in the Sky Protocol after the GSM Pause Delay has expired. The GSM Pause Delay is currently set to 48 hours.

This executive proposal includes an office-hours modifier that means that it can only be executed between 14:00 and 21:00 UTC, Monday - Friday.

If this executive proposal does not pass within 30 days, then it will expire and can no longer have any effect on the Sky Protocol.

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Proposal Details

MKR-to-SKY Upgrade Phase One

• Authorization: A.4.1.2.1.1 - MKR To SKY Upgrade Phase One, Ecosystem Approval
• Proposal: Forum post 1, 2, 3

As part of the transition to the Endgame, the technical infrastructure of the Sky Protocol will be upgraded to use SKY as its governance token rather than MKR. The upgrade will take place over three phases described under A.4.1.2.1 - MKR To SKY Upgrade. Phase One comprises the following actions:

• Disable conversion from SKY to MKR in the existing conversion contract.
• Launch new MKR-to-SKY conversion contract.
• Disable MKR Flop Auctions.
• Disable Emergency Shutdown Module.
• Launch new Chief Contract.
• Deploy New Vote Delegate Factory.
• Move the authority of the Spark Freezer MOM contract to the new Chief contract (through the Spark Proxy Spell).
• Launch the new SKY oracle and add the new SKY oracle to the Oracle Security Module MOM contract.
• Update Smart Burn Engine Parameters.
• Launch SKY staking.
• Remove LSE-MKR-A from the Debt Ceiling Instant Access Module (AutoLine) and set its Debt Ceiling (line) to zero.

If this executive proposal passes, then the above Phase One actions will be executed as described below.

Disable Conversion From SKY to MKR in Existing Conversion Contract

The functionality to convert SKY to MKR in the existing converter contract located at 0xBDcFCA946b6CDd965f99a839e4435Bcdc1bc470B on the Ethereum Mainnet will be disabled.

Launch New MKR-to-SKY Conversion Contract

A new contract that allows the one-way upgrading from MKR to SKY has been pre-deployed at 0xA1Ea1bA18E88C381C724a75F23a130420C403f9a. This contract:

• Will be authorized by calling SkyInit.updateMkrSky.
• Will support a Delayed Upgrade Penalty initially set to 0%.
• Will have its conversion rate set to 1:24,000.

Disable MKR Flop Auctions

MKR flop auctions will be disabled.

Disable Emergency Shutdown Module

The Emergency Shutdown Module will be disabled by setting the amount of MKR required to trigger it to infinity.

Launch New Chief Contract

A new Chief contract has been pre-deployed at 0x929d9A1435662357F54AdcF64DcEE4d6b867a6f9 to support voting with SKY instead of MKR.

Integrate New Vote Delegate Factory

A new Vote Delegate Factory contract has been pre-deployed at 0x4Cf3DaeFA2683Cd18df00f7AFF5169C00a9EccD5. The Vote Delegate factory contract will support deploying Delegate Contracts that SKY holders and SKY Staking users can delegate their voting power to.

Integrate New SKY Chronicle Scribe Instance Oracle and Add it to the OSM_MOM Contract

A new Oracle Security Module based on the Scribe SKY oracle has been pre-deployed at 0x511485bBd96e7e3a056a8D1b84C5071071C52D6F and added to the OSM_MOM.

Update Smart Burn Engine Parameters

The parameters of the Smart Burn Engine will be updated as follows:

• The oracle will be changed to the new SKY oracle.
• The rewardsDuration for the LSEV2-SKY-A USDS rewards contract will be set so that it is equal to the splitter.hop parameter (1,728 seconds).
• The current REWARDS_LSMKR_USDS farm will be replaced by the new SKY farm, REWARDS_LSSKY_USDS, which has been pre-deployed at 0x38E4254bD82ED5Ee97CD1C4278FAae748d998865.

Launch Sky Staking

SKY Staking will be launched with the following parameters for borrowing against staked SKY:

• Ilk: LSEV2-SKY-A
• Farms: LSSKY -> USDS at 0x38E4254bD82ED5Ee97CD1C4278FAae748d998865
• Fee: 0
• line: Automatically handled by the LockstakeMigrator contract at 0x473d777f608C3C24B441AB6bD4bBcA6b7F9AF90B to allow only existing LSE-MKR-A positions to be migrated into LSEV2-SKY-A.
• Only existing LSE-MKR-A users with drawn debt are allowed to migrate debt to LSEV2-SKY-A initially.
• Dust: 30,000 USDS
• Duty: 20%
• Mat: 125%
• Calc: StairstepExponentialDecrease
• Buf: 120%
• Tail: 6,000 seconds
• Cusp: 40%
• Chip: 0.1%
• Tip: 300 USDS
• Stopped: 3
• Chop: 13%
• Hole: 250,000 USDS
• Tau: 0 days
• Cut: 0.99
• Step: 60 seconds
• LineMom: Yes
• Tolerance: 0.5
• Name: LockstakeSky
• Symbol: lsSKY
• Use the new SKY Chronicle Scribe oracle instance OSM.
• Deny the CLIPPER_MOM from the new lockstake clipper.

Set the LSE-MKR-A Debt Ceiling (line) to zero and remove the vault from the Debt Ceiling Instant Access Module (AutoLine).

The following actions involving the Seal Engine will take place:

• Remove the LSE-MKR-A from the Debt Ceiling Instant Access Module (AutoLine).
• Set the LSE-MKR-A Debt Ceiling (line) to zero.

Phase One Migration Script

The Phase One actions listed above will be implemented by calling the MigrationInit.initMigration function as follows:

• Initialize Chief migration by calling MigrationInit.initMigration with the following parameters:
  • inst.chief: 0x929d9A1435662357F54AdcF64DcEE4d6b867a6f9
  • inst.voteDelegateFactory: 0x4Cf3DaeFA2683Cd18df00f7AFF5169C00a9EccD5
  • inst.mkrSky: 0xA1Ea1bA18E88C381C724a75F23a130420C403f9a
  • inst.skyOsm: 0x511485bBd96e7e3a056a8D1b84C5071071C52D6F
  • inst.lsskyUsdsFarm: 0x38E4254bD82ED5Ee97CD1C4278FAae748d998865
  • inst.lockstakeInstance.lssky: 0xf9A9cfD3229E985B91F99Bc866d42938044FFa1C
  • inst.lockstakeInstance.engine: 0xCe01C90dE7FD1bcFa39e237FE6D8D9F569e8A6a3
  • inst.lockstakeInstance.clipper: 0x35526314F18FeB5b7F124e40D6A99d64F7D7e89a
  • inst.lockstakeInstance.clipperCalc: 0xB8f8c7caabFa320717E3e848948450e120F0D9BB
  • inst.lockstakeInstance.migrator: 0x473d777f608C3C24B441AB6bD4bBcA6b7F9AF90B
  • cfg.maxYays: 5
  • cfg.launchThreshold: 2,400,000,000 SKY (equivalent to 100,000 MKR)
  • cfg.liftCooldown: 10 blocks
  • cfg.skyOracle: 0xc2ffbbDCCF1466Eb8968a846179191cb881eCdff
  • cfg.rewardsDuration: Equal to the splitter.hop (1,728 seconds)
  • cfg.lockstakeConfig.ilk: "LSEV2-SKY-A"
  • cfg.lockstakeConfig.farms: array [StakingRewards: 0x38E4254bD82ED5Ee97CD1C4278FAae748d998865]
  • cfg.lockstakeConfig.fee: 0
  • cfg.lockstakeConfig.dust: 30,000 USDS
  • cfg.lockstakeConfig.duty: 20%
  • cfg.lockstakeConfig.mat: 125%
  • cfg.lockstakeConfig.buf: 120%
  • cfg.lockstakeConfig.tail: 6,000 seconds
  • cfg.lockstakeConfig.cusp: 40%
  • cfg.lockstakeConfig.chip: 0.1%
  • cfg.lockstakeConfig.tip: 300 USDS
  • cfg.lockstakeConfig.stopped: 3
  • cfg.lockstakeConfig.chop: 13%
  • cfg.lockstakeConfig.hole: 250,000 USDS
  • cfg.lockstakeConfig.tau: 0 days
  • cfg.lockstakeConfig.cut: 0.99
  • cfg.lockstakeConfig.step: 60 seconds
  • cfg.lockstakeConfig.lineMom: true (as "added to LINE_MOM")
  • cfg.lockstakeConfig.tolerance: 0.5
  • cfg.lockstakeConfig.name: LockstakeSky
  • cfg.lockstakeConfig.symbol: lsSKY

More details about the technical scope of the Chief migration can be found here.

Add Protego to the Chainlog

• Authorization: A.1.9 - Sky Core Governance Security - Emergency Spells - Protego, Ecosystem Approval
• Proposal: Forum post 1, 2

Protego is a contract that allows Sky Governance to cancel the execution of planned governance actions that are awaiting the expiration of the Governance Security Module Pause Delay (GSM Pause Delay). Protego has been pre-deployed at 0x5C9c3cb0490938c9234ABddeD37a191576ED8624.

If this executive proposal passes, then the following actions will take place:

• Add Protego to the Chainlog with key MCD_PROTEGO.
• Bump chainlog MINOR version.

More details about the technical scope of the Protego deployment can be found here.

Spark Proxy Spell

• Authorization: A.4.1.2.1.1 - MKR To SKY Upgrade Phase One
• Proposal: Forum post

If this executive proposal passes, then a Spark Proxy Spell will be executed at 0xC40611AC4Fff8572Dc5F02A238176edCF15Ea7ba to move the authority of the Spark Freezer MOM contract to the new Chief contract.

Review

Community debate on these topics can be found on the Sky Governance forum. Please review any linked threads to inform your position before voting.

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Resources

Additional information about the Governance process can be found in the Operational Manual.

To add current and upcoming votes to your calendar, please see the Sky Governance Calendar.