LEAP-31: Guardian Specification

Author	Sean, Ksett, Domrom
Status	Approved
Created	2022-09-05

Simple Summary

This LEAP will detail the exact nature and responsibilities of the Guardians introduced in LEAP 16.

Abstract

This LEAP will formalize the role of Guardians, previously introduced in LEAP 16 as members of the core team/council responsible for speeding up deposits and withdrawals into the LP when the liquidity or volatility circuit breakers are triggered.

Motivation

The role of the Guardians was introduced in LEAP 16 as members of the CCs/Council with the power to fast track deposits/withdrawals into the LP.
The specifics and powers the Guardians possess was left unclear.
This LEAP will formalize the specifics of this role.

Specification

Overview

Guardians

\(\textbf{Who is it:}\) The Guardians is a smart contract with a multi-sig consisting of all 5 members of the Council and 2 members of the core team (who are not on the Council).

\(\textbf{Length of Service:}\) All Guardians serve for the duration of the Council.

\(\textbf{Selection:}\) Two CCs (not on the Council) are put forward by the core team. There is no election process to select these Guardian members.

\(\textbf{Responsibilities/Powers:}\) Fast Track Deposits and Withdrawals: Guardians will have the ability to fast track deposits and/or withdrawals when a circuit breaker or cooldown prevents processing. Guardians can fast track a transaction when: a) a deposit (withdrawal) has been stalled (by circuit breakers, cooldowns) for longer than max_dep = 3 days (max_withdraw = 3 days) b) the LP has less than min_free_liq = 5% of its NAV as free liquidity, Guardians can instantly process deposits to boost free liquidity.

Rationale

As explained earlier, it is important to specify roles for crucial components of the protocol like entry/exit. The above specification achieves this.

Technical Specification

Initially this will be handled by the signees themselves. They will observe the markets and determine if there is a need to fast track based on the parameters specified in this leap. There will be a multisig which will require 4/7 signatures to pass.

Over time this can be replaced with a smart contract which encodes even more specific cases on-chain, to increase automation of this/reduce the number of signers needed to execute these transactions.

Configurable Values

max_dep = 3 days
max_withdraw = 3 days
min_free_liq = 5% of NAV
sig_to_pass = 4