# Composable Recap 1

By [opensky](https://paragraph.com/@opensky) · 2023-08-29

---

This is a first.

Composable AVC is one of the bodies that develop strategy and vision for MakerDAO.

Composable AVC was started by LDF and David Phelps from jokecouncil and soon included opensky, the author of this recap.

Their mission is to make governance more efficient. With the right tools, the right mindset, and foremost by making sure information is as accessible as it can be. DAOs thrive through communication. Without a centralized source of truth it is up to processes to surface what is important and to help participants synchronize on common goals.

This newsletter aims to be a part of that puzzle. It does not try to give a complete picture of the what’s happening in the DAO. Instead it uses the discussion in the Composable AVC meetings each Friday at 1500 UTC on Maker’s Discord to recapitulate our own, specific and necessarily somewhat biased view of the whole.

The week before and a bit longer was dominated by the introduction of the eDSR, a beefed up and more flexible version of the popular DAI savings rate. In an attempt to attract new users, the eDSR was initially set at above 8%. The rationale being that Maker would have to offer substantially higher yield than T-Bills to attract inflows of new funds.

![Makerburn - DAI supply 3m view](https://storage.googleapis.com/papyrus_images/91a38f57bafced3437926e63fb574711d740a94a01661fb8ec417d9f89df5c3f.png)

Makerburn - DAI supply 3m view

The funds did come, and in spades. DAI supply shot up from 4.4bn to 5.5bn within a matter of days. Is it fair to say the experiment was a raging success?

Not so fast, unfortunately. A few massive DAI whales found out that the new yield was so high, that it paid to open new vaults with massive amounts of decentralized collateral because the yield was higher than the stabilty fee. This can be seen as a success of some kind, but is not sustainable, because Maker would bleed itself dry to make a few ETH whales wealthier.

![Makerburn - Dai in the DSR 3m view](https://storage.googleapis.com/papyrus_images/e91d12d73fb34970dc21c7a61708957c92605688df5999cd7aa901355a203fc7.png)

Makerburn - Dai in the DSR 3m view

Underneath the relentless arbitrage was a trickle of new users, though. Currently the eDSR rate has been reduced to a more sustainable 5% APY, which seems to attract a steady, healthy inflow of DAI.

Aside from the big DSR fireworks, there is ongoing concern about some of the older, more complex RWA collateral types, mainly ConsoleFreight and FortunaFi.

* * *

The Composable AVC discussion last week revolved around the Protocol Scope.

Specifically how the DAO can ensure that the maintenance of its codebase is as decentralized as possible. Currently Dewiz and parts of SES are crafting the spells, with a lot of the discussion happening in GitHub and in the #new-spells channel in Discord.

Composable AVC will look into the process and try to come up with concrete suggestions how to make the flow of information that goes into the spell-crafting process and out to the wider DAO as transparent and accessible as possible.

* * *

We’re happy to include relevant discussions and topics concerning MakerDAO in this newsletter. Please come to our Friday meetings or message @.opensky in Discord.

Cover photo by Antony Trivet, Pexels

---

*Originally published on [opensky](https://paragraph.com/@opensky/composable-recap-1)*