English

• Glossary of Terms

Dai

• What is Dai?

• Why would I want to use Dai?

• How is the price of Dai kept stable?

• How can I generate Dai?

• Where can I buy Dai?

• Where can I see the amount of collateral that is backing Dai?

• What organizations are using Dai?

Dai Savings Rate

• What is the Dai Savings Rate?

• How does the DSR work?

• Are there any range limits to the DSR? Can it be negative or zero?

• Does Dai automatically earn the DSR?

• Is the DSR its own smart contract?

• When users lock Dai into the DSR, is that Dai pooled?

• Do DSR accruals compound or are they only earned on the principal?

• What is the formula for the expected accruals earned through the DSR?

• Will there be any constraints, like minimum lockup time or withdrawal limits?

• Does Dai earned by the DSR get calculated and paid out at the time of withdrawal, or is it continuously added to the user’s balance?

• How is the DSR being used by MKR token holders as a monetary policy tool?

• Where can someone find information to better understand the economic impact of the DSR?

• Does the DSR reduce the MKR burn rate?

• Are Stability Fees structurally higher due to the existence of the DSR?

• Where can I find more technical information about the DSR?

Emergency Shutdown

• What is an Emergency Shutdown?

• What happens during an Emergency Shutdown?

• Who can initiate Emergency Shutdown?

• When should Emergency Shutdown be used?

• Does hitting a Debt Ceiling warrant an Emergency Shutdown?

• Will the redemption of collateral for Vaults and Dai be immediate and automatic, or a manual process?

• Why is there a delay period before Dai holders can redeem collateral?

• Do both Dai holders and Vault owners need to redeem collateral?

• If collateral prices keep falling after the reference prices are frozen, doesn’t that mean people redeeming Dai and closing-out Vaults may experience a haircut?

• How quickly can an Emergency Shutdown be performed?

• What happens to MakerDAO after an Emergency Shutdown?

• Who can redeploy the system?

• Who decides how the system should be redeployed?

• What if multiple redeployments happen, who decides which one is legitimate?

• During Emergency Shutdown, will Vault owner’s collateral be given away to other people?

• Is there anything preventing MKR holders from triggering an Emergency Shutdown in order to avoid MKR dilution due to poor management?

• Can I create a Vault during an Emergency Shutdown?

• What happens to inaccessible Vaults and Dai?

• Are Stability Fees waived in the event of an Emergency Shutdown?

• How does Emergency Shutdown affect other Dapps?

• Has an Emergency Shutdown ever been performed in the past?

• How was testing for Emergency Shutdown done?

• How will Vault users and Dai holders be notified of Emergency Shutdown?

• Where can I find more technical information about Emergency Shutdown?

Governance

• What is Governance?

• How is the Maker Protocol governed?

• Is there more than one type of vote?

• What does a forum signal thread look like?

• Can anyone start a forum signal thread?

• What’s the difference between a forum signal thread and a regular forum poll?

• How does a forum signal thread proceed to an on-chain Governance Poll?

• When do Governance Polls happen?

• How long is the voting period of a Governance Poll?

• Where can I find on-chain Governance Polls?

• Can anyone create an on-chain Governance Poll?

• When do Executive Votes Happen?

• What is Continuous Approval Voting?

• Why is the Continuous Approval Voting System necessary?

• How Long is the Voting Period of an Executive Vote?

• Can anyone start an Executive Vote?

• Does anyone audit the code for the Executive Votes?

• What are hats, slates, and spells?

• How do MKR holders stay informed of governance issues?

• What do MKR holders vote on?

• How can I vote off-chain?

• How can I vote on-chain?

• How does the Maker Foundation’s Voting Portal work?

• What is a Voting Contract?

• How do I know my vote was placed?

• If a vote has already started can I still participate?

• Can I change my vote once I have placed it?

• How is the voting calculated?

• What are the different ways to set up the Voting Contract?

• What does voting with a linked wallet do for me?

• When setting up a linked wallet, what permissions am I granting?

• Does it cost gas every time I vote?

• When setting up a linked wallet, how much gas will I need and which wallet does it come from?

• What are IOU Tokens?

• When setting up a linked wallet, how many transactions do I have to sign?

• When setting up a single wallet, how many transactions do I have to sign?

• What happens to my MKR when I am voting?

• How do I know my MKR is in the Voting Contract?

• How do I withdraw my MKR from the voting contract?

• How does a withdrawal affect my previous votes?

• Do I need to withdraw MKR from the voting contract immediately after voting?

• Can I send MKR from my cold wallet to another address while it is locked in the voting contract?

• What happens if I send more MKR to my cold wallet after I link it?

• Can I break the link between my hot and cold wallet?

• Can I combine more than one address holding MKR to vote?

• How are proposals created?

• Where can I find more technical information about the Maker Protocol Governance mechanism?

Liquidation

• What is Liquidation?

• Why does Liquidation exist?

• Who triggers Liquidation?

• What is the Liquidation Ratio?

• What is the Liquidation Price?

• What is the Liquidation Penalty?

• Why is the Liquidation Penalty necessary?

• What happens during a Liquidation?

• How much collateral is left after a Liquidation?

• How do I calculate my Liquidation Price?

• How do I calculate my Collateralization Ratio?

• How do I lower my Liquidation Price?

• What are typical practices to avoid getting Liquidated?

• How would a flash crash affect the Liquidation of Vaults?

• Where can I view live information about Liquidations?

• Where can I find more technical information about Liquidations?

MakerDAO

• What is MakerDAO?

• Who Started MakerDAO and When?

• Why did the founders call it _Maker_DAO?

• What does DAO mean?

• Who is the Maker Community?

• What is the Maker Foundation, and how does it relate to MakerDAO?

• Does the Foundation Vote in MakerDAO Governance?

• Will the Maker Foundation exist indefinitely?

• What are the primary focuses of the Maker Foundation?

• Where does The Maker Foundation get funding from?

• Who controls the Development Fund?

• What are the plans for the Development Fund?

• Is MKR in the Development Fund used to vote in Maker Governance?

• What is the legal structure of The Maker Foundation?

• How do I distinguish between the DAO and the team who is developing and bootstrapping MakerDAO?

• What is the Dai Foundation?

• Who is on the Board of Trustees of the Dai Foundation?

MKR Token

• What is MKR?

• What is the MKR token used for?

• How are MKR tokens created or destroyed?

• What responsibilities do MKR holders have?

• What voting rights do MKR holders have?

• What addresses hold the most MKR?

• Can MKR be used as a collateral type?

• Will MKR token dilution be able to cover all Dai if the value of their backing collateral goes to zero?

• How do I redeem old MKR?

• What happens to MKR in the event of an Emergency Shutdown?

• How much MKR is there?

Oracles

• What is an Oracle?

• How does the Oracle system work?

• How is the Oracle system made secure?

• What is an Oracle Security Module?

• Can MakerDAO governance change the time of the Oracle Security Module’s delay?

• What is a Medianizer?

• How often does the Medianizer publish an updated reference price?

• What is a Secure Scuttlebut Network?

• Why are Oracles an attack target for malicious actors?

• Who are the Feeds?

• Why are organizational Feeds public, while individual Feeds are pseudonymous?

• What is the process for becoming a Feed?

• Is the Oracle system resistant to Sybil attacks?

• What happens if there is a flash crash on an exchange?

• Where can I find more technical information about Oracles?

Stability Fee

• What is the Stability Fee?

• What is the purpose of the Stability Fee?

• When do I have to pay the Stability Fee?

• Do I have to pay the new fees on old debt in the case of a Stability Fee change?

• Why does the Stability Fee Change?

• How is the Stability Fee calculated?

• What does the system do with the collected fees?

• Where can I see my currently accrued Stability Fee?

• How can I calculate my potential Stability Fee?

• Where can I learn more about Risk Teams and how Stability Fees are determined?

• Is there a limit to how much a Stability Fee can change?

• How often do Stability Fees change?

• Where can I find more technical information about Stability Fees?

Vaults

• What are Maker Vaults?

• How does a Vault work?

• What is a Debt Ceiling?

• Are there different types of Vaults?

• What kind of collateral can I use?

• Who can open a Vault?

• Are there fees for using a Vault?

• What is the Collateralization Ratio?

• What risks are associated with owning a Vault?

• What are Common Practices to limit risk?

• How would a flash crash on a single exchange affect the Liquidation of Vaults?

• Where can I view live information about Liquidations?

• Where can I find more technical information about Vaults?