DewizExploring MakerDAO's PSM and the Advent of LitePSM: A Technical Deep Dive
The world of decentralized finance (DeFi) is constantly evolving, and MakerDAO stands at the forefront of this innovation. One of its key components, the Peg Stability Module (PSM), has been instrumental in maintaining the stability of Dai, MakerDAO's native stablecoin. This article dives into the intricacies of the PSM and introduces its newest iteration – the LitePSM – built by Dewiz for enhanced efficiency.True story!HistoryThe first Peg Stability Module was deployed in the aftermath ...
DewizSky's Core Allocator System: Unravel the Mystery
A journey with Vaults, Buffers, Oracles and Capital Deployment through the Obex Prime Agent.
DewizNavigating the DSS Governance Module: A Key to Decentralized Decision-Making in MakerDAO
The realm of decentralized finance (DeFi) is not only about innovative financial tools but also about novel governance structures. At the heart of MakerDAO, one of the pioneering platforms in DeFi, lies the DSS Governance Module. This article delves into its components and the unique governance process that empowers the MakerDAO community.HistoryMaker governance was one of the first governance modules deployed on the Ethereum mainnet, back in 2017. It follows a very particular process not use...
Dewiz DeFi Engineering Services OG Sky Protocol Ecosystem Actor. Fueling the intents economy. We buidl REAL `#DeFi`.
DewizExploring MakerDAO's PSM and the Advent of LitePSM: A Technical Deep Dive
The world of decentralized finance (DeFi) is constantly evolving, and MakerDAO stands at the forefront of this innovation. One of its key components, the Peg Stability Module (PSM), has been instrumental in maintaining the stability of Dai, MakerDAO's native stablecoin. This article dives into the intricacies of the PSM and introduces its newest iteration – the LitePSM – built by Dewiz for enhanced efficiency.True story!HistoryThe first Peg Stability Module was deployed in the aftermath ...
DewizSky's Core Allocator System: Unravel the Mystery
A journey with Vaults, Buffers, Oracles and Capital Deployment through the Obex Prime Agent.
DewizNavigating the DSS Governance Module: A Key to Decentralized Decision-Making in MakerDAO
The realm of decentralized finance (DeFi) is not only about innovative financial tools but also about novel governance structures. At the heart of MakerDAO, one of the pioneering platforms in DeFi, lies the DSS Governance Module. This article delves into its components and the unique governance process that empowers the MakerDAO community.HistoryMaker governance was one of the first governance modules deployed on the Ethereum mainnet, back in 2017. It follows a very particular process not use...
Dewiz DeFi Engineering Services OG Sky Protocol Ecosystem Actor. Fueling the intents economy. We buidl REAL `#DeFi`.
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Picture the infamous classic MakerDAO spaghetti diagram—one big tangle of arrows and boxes. Now imagine a cosmic remote with the ability to tune stability fees from inside the mess. Welcome SP‑BEAM 👾.
At Dewiz, we recently built and deployed the SP-BEAM (Stability Parameter Bounded External Access Module), an essential innovation for decentralized governance, designed to enhance Sky's protocol efficiency and security. Here we explain the rationale behind its creation, outline its technical architecture, and clarify its governance procedures.
In decentralized finance, timely and precise parameter adjustments are critical for maintaining system stability. Traditional governance processes often introduce delays and human error, leaving protocols exposed to unnecessary risk. SP-BEAM addresses this by providing controlled, bounded access to modify stability parameters rapidly and safely.
Before SP-BEAM all stability parameter updates were made through the bi-weekly Executive Vote process (aka Spell). The process is intentionally slow, as governance should be, but it proved too slow for adjusting the system rates.
SP-BEAM allows higher frequency, smoother updates to the stability parameters.
SP-BEAM was developed with clear objectives:
Rapid Response: Enable swift adjustments to stability parameters like.
Security and Control: Impose strict bounds on parameter changes, preventing potential governance abuse or operational mishaps.
Governance Integration: Seamlessly integrate with Sky's established governance processes, supporting multisig-controlled, transparent adjustments.
Auditability and Transparency: Ensure every parameter change is verifiable and recorded transparently, strengthening community trust.
Governance Oversight: Parameters can still be updated through the Executive Vote process. Governance can also halt the module if needed.
SPBEAM.sol: the core logic handling bounded adjustments. This contract maintains allowed ranges (min, max, step) for each parameter, enforcing strict adherence.
SPBEAMMom.sol: can be used by governance to halt the module without waiting for the time-lock (aka pause) delay.
Conv.sol: on-chain converter between per second rates to yearly BPS for readability and easy operation.
Parameters are grouped into parameter categories, each with their specific adjustment ranges.
Changes occur in discrete steps, preventing sudden, drastic modifications. For example, collateral vaults adjust in ±4% increments, within defined boundaries (e.g., min 2%, max 30%).
Delays are enforced between changes.
The governance lifecycle for SP-BEAM includes the following steps:
Parameter Proposal: the Stability Advisor starts a discussion in the SKY forum, proposing parameter adjustments.
Proposal Approval: once discussion reaches a conclusion, the Stability Facilitator reviews the proposals and replies with an approval.
On-chain Execution: upon approval, the SP-BEAM operator executes the changes on-chain.
Announcement: updates are communicated through the SKY forum and other channels.
This is a relevant change to the Sky Protocol, and as usual security is taken very seriously, being a priority from the start. The module was built with extensive test coverage and reviews, formal verification using Certora and audits by ChainSecurity and SpearBit/CantinaSec.
We are buidlers! Dewiz co-founders are former MakerDAO Core Unit contributors, who have been actively contributing with the Sky Protocol since 2021, and have been engaged in the broader Ethereum ecosystem since 2018.
We enable DeFi innovators to build on top of the main DeFi protocols, providing technical expertise on both on-chain and off-chain integrations that can save thousands of hours in engineering resources and put your project on the fast-track of the new financial world.
Our team has expertise in smart contract engineering for EVM chains, front-end engineering, integrations, supporting services and agile project management.
If you are in need of builders for your project, reach out!
Article written by Oddaf.
Picture the infamous classic MakerDAO spaghetti diagram—one big tangle of arrows and boxes. Now imagine a cosmic remote with the ability to tune stability fees from inside the mess. Welcome SP‑BEAM 👾.
At Dewiz, we recently built and deployed the SP-BEAM (Stability Parameter Bounded External Access Module), an essential innovation for decentralized governance, designed to enhance Sky's protocol efficiency and security. Here we explain the rationale behind its creation, outline its technical architecture, and clarify its governance procedures.
In decentralized finance, timely and precise parameter adjustments are critical for maintaining system stability. Traditional governance processes often introduce delays and human error, leaving protocols exposed to unnecessary risk. SP-BEAM addresses this by providing controlled, bounded access to modify stability parameters rapidly and safely.
Before SP-BEAM all stability parameter updates were made through the bi-weekly Executive Vote process (aka Spell). The process is intentionally slow, as governance should be, but it proved too slow for adjusting the system rates.
SP-BEAM allows higher frequency, smoother updates to the stability parameters.
SP-BEAM was developed with clear objectives:
Rapid Response: Enable swift adjustments to stability parameters like.
Security and Control: Impose strict bounds on parameter changes, preventing potential governance abuse or operational mishaps.
Governance Integration: Seamlessly integrate with Sky's established governance processes, supporting multisig-controlled, transparent adjustments.
Auditability and Transparency: Ensure every parameter change is verifiable and recorded transparently, strengthening community trust.
Governance Oversight: Parameters can still be updated through the Executive Vote process. Governance can also halt the module if needed.
SPBEAM.sol: the core logic handling bounded adjustments. This contract maintains allowed ranges (min, max, step) for each parameter, enforcing strict adherence.
SPBEAMMom.sol: can be used by governance to halt the module without waiting for the time-lock (aka pause) delay.
Conv.sol: on-chain converter between per second rates to yearly BPS for readability and easy operation.
Parameters are grouped into parameter categories, each with their specific adjustment ranges.
Changes occur in discrete steps, preventing sudden, drastic modifications. For example, collateral vaults adjust in ±4% increments, within defined boundaries (e.g., min 2%, max 30%).
Delays are enforced between changes.
The governance lifecycle for SP-BEAM includes the following steps:
Parameter Proposal: the Stability Advisor starts a discussion in the SKY forum, proposing parameter adjustments.
Proposal Approval: once discussion reaches a conclusion, the Stability Facilitator reviews the proposals and replies with an approval.
On-chain Execution: upon approval, the SP-BEAM operator executes the changes on-chain.
Announcement: updates are communicated through the SKY forum and other channels.
This is a relevant change to the Sky Protocol, and as usual security is taken very seriously, being a priority from the start. The module was built with extensive test coverage and reviews, formal verification using Certora and audits by ChainSecurity and SpearBit/CantinaSec.
We are buidlers! Dewiz co-founders are former MakerDAO Core Unit contributors, who have been actively contributing with the Sky Protocol since 2021, and have been engaged in the broader Ethereum ecosystem since 2018.
We enable DeFi innovators to build on top of the main DeFi protocols, providing technical expertise on both on-chain and off-chain integrations that can save thousands of hours in engineering resources and put your project on the fast-track of the new financial world.
Our team has expertise in smart contract engineering for EVM chains, front-end engineering, integrations, supporting services and agile project management.
If you are in need of builders for your project, reach out!
Article written by Oddaf.
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