Summary:
Users who manage their MakerDAO vaults with B.Protocol get to share liquidation proceeds, and vote on the next protocol upgrade.
The proposed change is to implement StrategyMKRVaultDAIDelegate to use B.Protocol’s CDP manager, instead of MakerDAO’s CDP manager.
In addition to getting extra w.r.t using MakerDAO directly, it can remove some of the pressure on MakerDAO’s keepers, as in B.Protocol the liquidation is done by professional keepers, who have better incentive to be prepared for big liquidations.
Abstract:
B.Protocol makes lending platforms more stable by incentivizing liquidity providers (keepers) to commit on liquidation of under collateralized loans and shift the miners extracted profits back to the users of the platform.
It went live 5 days ago over MakerDAO with ETH-A support, and current have over 5k ETH in deposits.
In B.Protocol dedicated liquidators (keepers) get priority in the liquidation process, and in return share their proceeds with all the users of the platform.
The proceeds are shared according to a user score, which is accumulated according to the amount of DAI the user is generating over time.
The liquidators proceeds are shared according to the score, and in addition the score is used to vote the protocol upgrade after 6 months.
Motivation:
Using StrategyMKRVaultDAIDelegate with B.Protocol interface can only give extra to the yETH strategy, and can also help ease liquidation pressure on MakerDAO keepers in a black swarm event.
B.Protocol smart contract user facing layer is quite simple, as long as the CDP is not being liquidated, and the compatibility to MakerDAO’s original implementation is easy to verify.
Specification:
Change StrategyMKRVaultDAIDelegate contract to use address 0x3f30c2381CD8B917Dd96EB2f1A4F96D91324BBed at line 25.
Change total debt calculation at lines 378 and L248 to include liquidators cushion.
The proceed sharing is done in WETH and can be claimed for the strategy by anyone.
Hence, the deposit function can just add it to the strategy’s vault.
If the strategy also want to take a role in the upgrade vote, then a voting implementation is also needed.
For:
Use BStrategyMKRVaultDAIDelegate strategy.
Against:
Do not use BStrategyMKRVaultDAIDelegate strategy.
P.S
Will be happy to answer more questions here, and if needed also at B.Protocol discord channel.