Governance

Priviledged functionalities managed by roles.

Why are Priviledged Functions Needed?

The USDN Protocol is a complex system. We want to be able to patch any vulnerability found after the deployment, or simply update settings to better accomodate users once we have data on the usage of the protocol.

There are also great strides made in the Blockchain industry everyday. Having the ability to update the protocol with any potential improvement allows us to adapt to new challenges.

With great power comes great responsibility, therefore, to ensure the safety of the protocol, multi signature wallets are used to prevent access to priviledged functions by malicious actors. Also, each and every one of the settings have maximum values that cannot be exceeded, to avoid mistakes or unsafe parameters.

100% OF GOVERNANCE PRIVILEGES WILL BE TRANSFERRED TO A DAO.

What can Priviledged Functions Do?

1. USDN Protocol

• Change the Imbalance Limits

• Change the Minimum Position Size

• Change the leverage limits

• Change the amount required as a Security Deposit

• Change the Liquidation Penalty

• Change the number of ticks that can be liquidated in one transaction

• Change the funding settings

• Change the funding fee

• Change the Long Position fee

• Change the Vault deposit fee

• Change the SDEX burn fee

• Change the reward given when burning SDEX fees

• Change the address of the middleware managing Oracle price validation

• Change the length of the exclusivity period for initiate validation

• Change the address of the middleware managing Liquidator Rewards calculation

• Change the address of the Dip Accumulator

• Change the bonus given to the Dip Accumulator on trigger

• Change the address of the fee collector

• Upgrade the Protocol's proxy implementation

• Unblock a stuck pending action

• Pause/Unpause the protocol

• Change the price threshold at which the USDN token will rebase, as well as the target price

2. USDN Token

• Mint

• Rebase

• Change the callback to execute after a Rebase

While minting and rebasing is possible for the owner of the USDN token's contract, only the USDN protocol is supposed to do it. The ownership of the USDN token's contract will be revoked once the USDN ecosystem is stable. Then, the USDN Protocol will be the sole address that will have those capabilities.

3. Oracles

• Change the time to wait before an action can be validated

• Change the amount of time a Chainlink price is considered valid

• Change the amount of time a Pyth price is considered recent

• Change the confidence ratio

• Change the amount of time an action can be validated using Pyth

• Withdraw any Ether stuck in the contract

  • This smart contract is not meant to hold any asset. Any Ether sent to this contract by mistake can be recovered.

4. Liquidation Rewards Manager

• Change the parameters to calculate the rewards given to the user that liquidates positions.

5. Dip Accumulator

• Change the maximum leverage of the position

• Change the minimum amount that can be deposited