VSP#4: Establish EmergencyDAO and Nominate Signatories

DAO Proposals
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VSP#4: Establish EmergencyDAO and Nominate Signatories

Proposal Summary:

This proposal aims to establish VirtuSwap Emergency DAO, including: its decision-making mechanism; appointment of first members; and the admin privileges that will be granted to the Emergency DAO, as a safeguard that will be used in extreme circumstances where community funds might be at risk.

Motivation:

Emergency DAO will be used as an additional safeguard to community’s funds. The Emergency DAO will be composed of a combination of core team members and trusted prominent figures in the ecosystem. The Emergency DAO shall receive specific, predefined admin privileges that will allow it to intervene in extreme circumstances when user’s funds could be at risk.
It should be noted that Emergency DAOs rarely use their privileges and in any case no one will have access to funds stored in the smart contracts.
This proposal aims to establish VirtuSwap Emergency DAO, create a decision-making procedure, set the admin privlidges that the Emergency DAO will hold, and nominate the first members of the Emergency DAO.

Proposal Specification:

1. Emergency DAO operational procedure:
As the emergency DAO is dedicated to extreme circumstances in which immediate action is required, the emergency DAO privileges will be embedded in a Multisig wallet.
To approve an action by the Emergency DAO, 4 of the 6 first Emergency DAP members should approve it (i.e. ±66.67% support). This role will be embedded in the Emergency DAO multisig wallet, such that once enough support is reached the transaction will be executed (i.e. ±66.67% Quorum).

Polygon (PoS) Emergency DAO multisig address:
0x9FC84abA0d1F6E4e92E4C459BbDc5dD41D1Fc183

2. VirtuSwap Emergency DAO authority:

The Emergency DAO will hold the following admin privileges, which reflect the common practice for Emergency DAOs and in addition to functionalities that relates to VirtuSwap unique virtual reserve pool architecture:

Traditional Emergency DAO privileges:

vPair.emergencyToggle Disables all operations in a pool except withdrawing liquidity. Should be called again to enable all operations of the pool.
vPairFactory.setPendingEmergencyAdmin The first step in updating the address of the Emergency Admin wallet. After this method is called, acceptEmergencyAdmin must be called to complete the process of changing the Emergency Admin

Privlidges specific to VirtuSwap technology:

VirtuSwap DEX enables liquidity pools to hold, for limited scope (up to 2% of the pools TVL), assets not native to the pools as “Reserves”. The goal is to solve the problem of indirect costly trades. We propose that the following additional privileges will be granted to the Emergency DAO:

vPairFactory.setDefaultAllowList Sets the default tokens AllowList to be used with for any new pool created with createPair method.
vPair.setAllowList Sets the tokens AllowList to be used for a current pool
vPair.setReserveRatioWarningThreshold Sets the reserve ratio threshold after which the liquidation of reserves is possible for admin
vPair.Liquidate at any price Liquidate reserves at any price
vPair.setBlocksDelay Sets the number of blocks for which virtual trading will be blocked for this pool as a reference pool (needed to prevent price manipulation)

3. Appointment of first Emergency DAO signatories:

The Emergency DAO is subjected to VirtuSwapDAO. As such, appointing or removing a member from the Emergency DAO will be done by an Ownership Decision of VirtuSwapDAO.

The first six members of the Emergency DAO will be:

SL: 0x2d…fc8a

EL: 0x44…d310

JZ: 0xD6…d79a

HK: 0x61…877f

AZ: 0xb7…B101

IR: 0xDD…8958

All members can initiate a function on the emergency multisig and vote on any proposal of the Emergency DAO. Members who initiate an Emergency action, should provide an explanation for it to the rest of the members.

To contact members of the EmergencyDAO, community can reach out via VirtuSwap official TG, Discord, or via email at: contact@virtuswap.io

Resources: