TAI
  • How does TAI work?
    • Overview
    • Supported Collaterals
    • Liquidations and Auctions
    • Tokenomics
    • Governance
      • Goverance Process
      • Governance Parameters
    • Rewards
    • Audits
  • TAI Protocol: In-depth
    • Contracts
      • System Contracts
        • Core Module
          • SAFE Engine
          • Liquidation Engine
          • Accounting Engine
        • Auction Module
          • Increasing Discount Collateral Auction House
          • Debt Auction House
          • Surplus Auction House
        • Oracle Module
          • Oracle Relayer
          • Medianizer
            • DSValue
            • Governance Led Median
            • Chainlink Median
          • FSM
            • Oracle Security Module
        • Token Module
          • Token Adapters
          • System Coin: TAI
          • Protocol Token: RATE
          • Protocol Token Authority
        • Money Market Module
          • Tax Collector
        • Sustainability Module
          • Stability Fee Treasury
          • FSM Wrapper
          • Increasing Treasury Reimbursement
          • Mandatory Fixed Treasury Reimbursement
        • Automation Module
          • Collateral Auction Throttler
          • Single Spot Debt Ceiling Setter
          • ESM Threshold Setter
        • Governance Module
          • DSPause
        • Shutdown Module
          • Global Settlement
          • ESM
      • Proxy Infrastructure
        • DSProxy
        • Proxy Registry
      • Helper Contracts
        • SAFE Manager
      • Contract Addresses
    • Data APIs
      • API Endpoints
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On this page
  • 1. Overview
  • 2. Component Descriptions
  • 3. Risks
  • Governance Attack
  • Smart Contract Bugs
  • 4. Governance Minimization
  1. TAI Protocol: In-depth
  2. Contracts
  3. System Contracts

Governance Module

Tools for achieving consensus

PreviousESM Threshold SetterNextDSPause

Last updated 1 year ago

Relevant smart contracts:

1. Overview

The Governance Module is a set of smart contracts that governance can use to modify and upgrade GEB.

2. Component Descriptions

  • DSPause - the pause contract enforces a delay between scheduling a transaction (coming from a multisig or a voting contract) and executing it.

3. Risks

Governance Attack

Malicious governance may want to extract all the collateral from the system or generate a high amount of debt that is not backed by collateral. There are two possible solutions to this problem:

  1. Eliminate governance over most core system components (especially the ones that handle collateral balances).

  2. Use DSPause and add a delay to every schedule governance proposal.

Smart Contract Bugs

  • An attacker could bypass the delay or, if the authorization logic is flawed, propose and execute transactions that were not approved by token holders or by a multisig.

4. Governance Minimization

The governance module is meant to be controlled by the community (with the use of protocol tokens) or by the core team (in the initial stages post launch). Governance minimization is done at the protocol level by removing or bounding human control.

DSPause