Governance
Sweep governance controls:
- Code updates and parameters
- Asset list and limits
- Treasury use
Stabilizers charge a fee and send it to the Treasury. Fees compensate the DAO for risk and for providing redemption liquidity. Fees will increase if the DAO funds less liquid assets and does more work to guarantee redemption liquidity.
The Treasury holds assets as SWEEP. It stays fully invested in stable dollar assets. The protocol does not keep volatile assets in a treasury, it does not keep its own governance coins, and it does not issue unvested or locked governance coins.
The Treasury can acquire assets by selling newly minted governance coins.
The protocol will be motivated to mint and sell governance coins when Price/Book is high, and capitalization is less than a target value. The protocol will be motivated to buy back and burn governance coins when Price/Book is less than one, and capitalization is greater than a target value. The protocol can expand and contract to meet market needs.
More precisely
- B =Book value= treasury SWEEP value
- A =Assets=~ SWEEP supply
- P =Price= market capitalization
- T = Target capitalization, a target for B/A
Mint and sell SWEEPER when P/B > 2 and B/A < T
Buy and burn SWEEPER when P/B<1 and B/A > T
Vote on governance proposals with Tally.xyz.
SWEEPER implements the OpenZeppelin updates to Compound governance.
SWEEPER is an ERC20 coin that uses OpenZeppelin code with settings for Mintable, Burnable, Pausable, and Votes (with delegation). It includes new functions to mint and sell / buy and burn SWEEPER under the right conditions.
SweepGovernor contains the standard code for timelock and execution.
Last modified 3mo ago