Overview of Ungovernance Phase Two

General Discussion
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Notes from 6/8 ungovernance meeting:

Contract Updates / Deployments

Gas Oracle

  • determines the “Safe Debt Floor” (minimum amount of RAI that you can draw from a Safe
  • the safe debt floor must be high enough that liquidating safes are always profitable
  • currently set by governance, will continue to be set by governance
  • no easy oracle that we found today
  • for comparison, maker has ~10K minimum DAI debt value
  • want to run a separate gas price oracle for the Safe Debt Floor, because the gas price oracle is also used for pinger compensation - we don’t want to overpay pinger bots, but we also don’t want to make the debt floor too low (bc then liquidations are unprofitable)
  • the Rewards Relayer will still be governed and can be used to change how pingers are paid

Surplus Buffer

  • always need to keep minimum amount of RAI in the surplus buffer
  • the contract will target a minimum of 500K RAI in the surplus buffer. The formula used by the contract will be max(500,000, 0.5% * total_rai_debt)
  • there is risk of surplus buffer getting so big that in a global settlement case RAI holders would get >1 RAI, and bc we don’t want to incentivize global settlement…
  • Q - when we wipe out RAI treasury do we also wipe out pinger budget? A - no, pinger treasury is separate.

Controller Ungovernance

Compound Governor

FLX minter

  • DAO Funding & Treasury
  • pushback on terminal FLX inflation (e.g. 2%/y)
  • response - could be governed by DAO
  • decisions to make (in the future):
    • should the DAO be able to mint FLX?
    • if so, should there be a hard upper limit to DAO FLX inflation?
    • if so, what should be the hard upper limit?

Phase Two Ungoverned Contracts

  • note - we will be going more granular on these at a later date…

Safe Engine

  • collateral ratio → 135%
  • debt floor → set by contract that ingests gas price oracle
  • ETH as only collateral type

Accounting Engine

  • tracks RAI surplus and deficit
  • allows triggering of RAI surplus auctions, once RAI in treasury is over some threshold
  • allows triggering of RAI debt auctions (to sell off FLX for RAI to cover bad debt)

Global Settlement

  • cooldown period
  • min FLX to burn to trigger (10%)

Staking Pool

  • agree on keeping the staking params governed as it is still a new feature

Protocol Token Authority

  • governance cannot change any parameter (no new address is allowed to mint FLX besides the debt auction house and the inflation minter)
  • we can probably remove the Protocol Token Printing Permissions bc only the two contracts above need to mint

Staking Reward Adjuster

  • this contract automatically recomputes the amount of FLX that goes to the lender of first resort pool every block. It also sends FLX to the lender of first resort when a staker claims their accrued rewards
  • this is fine to ungovern, it receives a fixed daily amount of FLX and spreads it out over 28 days to keep the FLX distro the smae