Governance Meeting Minutes 2016 Feb 21st
General Topics:
Custodians: (will issue DAI)
Based on early Nubits model of using Liquidity Providing Custodians to back and provide liquidity for their coin.
In the context of Maker a Custodian is a company that receives its debt ceiling based on internally held assets.
The custodian uses its debt ceiling to market make the Dai against the USD and other assets, earning profit from the spread. The more Dai they sell, the more their debt ceiling can potentially be expanded.
Custodians can also arbitrage the interest rates between the Dai economy and the regular economy.
Custodians are for profit, pay the insurance fee, and are required to always hold an auditable security margin, as well as aggressively provide full transparency to MKR voters.
