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๐Ÿข Minimized Governance
๐Ÿข Minimized Governance

Understanding eBTC's governance mechanism.

hyment avatar
Written by hyment
Updated over a week ago

eBTC's Minimized Governance Framework

Transparent governance mechanisms facilitate community involvement in decision-making processes.

As such, eBTC implements a Minimized Governance system, aimed at enhancing trustlessness and censorship resistance. This governance framework preserves the core properties of the protocol as immutable, while granting token holders delegated authority to adjust less critical parameters.

By employing this approach, we achieve the modification of select system parameters without compromising user trust assumptions, ensuring resilience, future-proofing, and security.

Subsequently, we categorize components into two types: Governable and Ungovernable.

โ›”๏ธ Immutable Ungovernable Components

The parameters and features below define the rules and terms under which users interact with the system. Any alterations to these would impact active usersโ€™ positions and violate the core principles of trustlessness and self-custody.

  1. Minimum Collateral Ratio

  2. Critical Collateral Ratio

  3. Minimum CDP Size

  4. Collateral Type

  5. Number of Different Collaterals

  6. Gas Stipend

  7. Liquidation Incentives Algorithm

  8. Recovery mode

  9. Fee Recipient Address

โœ… Governable Parameters

The parameters and features below are preserved in order to strengthen the stability, security and scalability of the system.

  1. Recovery Mode

  2. Grace Period Duration

  3. Flash Loan Fee

  4. Redemption Fee Parameters

  5. Protocol Yield Share %

  6. Sweeping Stuck Tokens

  7. Primary Oracle

  8. Secondary Oracle

  9. Collateral Feed Source

  10. Extensible Minting (Governance Admin)

  11. Redemptions Pausing

  12. Flashloans Pausing

Now, how do changes in governable parameters take place? Via two timelock contracts to ensure a secure, transparent and structured approach. Learn how they work here.

โ“ If you find yourself in need of additional assistance along your eBTC journey, feel free to explore our Support Help Center or directly contact us. We're here to address any questions or concerns you may encounter within the eBTC ecosystem. Just click the chat button at the bottom right-hand corner of the screen and send our support team a message.

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