This proposal aims to create emergency daos for Balancer sdBAL/B-80BAL-20WETH Liquid Lockers.
Stake DAO has been whitelisted to allow the protocol to lock B-80BAL-20WETH, and create a Balancer Liquid Lockers.
From now on, thanks to the Balancer Liquid Lockers, sdBAL holders can take part in the governance of Balancer and benefit from the advantages offered by the proctocol.
However, despite the advantages of the products, some risks were highlighted by the DeFi communities. The major risk raised concerns the manipulation of votes by governance attacks via the metagovernance that the Liquid Lockers offer.
In order to answer the many questions raised by the users, and to reduce the risks as much as possible, Stake DAO has put in place various means to prevent these dangers
among others, the veSDT veto right, the time weighted average voting power mechanism, and the creation of a Balancer Emergency DAO. Seen as an additional means of guarding against malicious voting, the Emergency DAO will be a further bulwark against malicious or suspicious voting. A malicious voting can be defined as « any governance vote putting at risk the underlying protocol ».
Indeed, it has been agreed with the different actors of Stake DAO and Balancer to create an Emergency DAO able to close any vote that would seem malicious and not take it into account in the final result.
The Emergency DAO is an idea pioneered by Curve that empowers a small group to “kill” pools and gauges in the event of malicious activity and/or potential loss of funds.
Each of the liquid lockers has their own Emergency DAO. This emergency DAO is composed of 2 members from the underlying protocols, 2 members from Stake DAO, and 2 independent members from the ecosystem, agreed upon by the 4 other members. An emergency DAO vote would require at least 4 votes to pass, Each member has one vote. Any member may propose a vote. All members of the emergency DAO may underline a mischievous vote.
- Hubert_Tube (Stake DAO)
- chago0x (Stake DAO)
- Solarcurve (Balancer team)
- Zen Dragon (Balancer team)
- Pablo from Angle (independant selected by stake DAO)
- Kia (independant selected by Balancer)
- Yes, create Balancer Emergency DAO
- No, don’t create Balancer Emergency DAO