A simple model for optimizing MakerDAO DSR algorithmically
Currently, DSR and the burn threshold are both governance inputs. However, they could be made into outputs instead, and focus moved from deciding what the right number is for a specific input, to focus on what the right parameters are for a given engine.
Overall Parameters
demand
4305 / 10000
Surplus Buffer (millions)
% Exposure to Crypto-backed loans
60 / 100
Overall expenses
Asset Exposure
Capital at Risk (bps, Crypto)
100 / 500
Capital at Risk (bps, RWA)
300 / 500
ROA (%, crypto)
15 / 50
Return on Assets (%, RWA)
4 / 50