The introduction of $oneDODO governance

$oneDODO Governance

$oneDODO is a token worth $1 that is minted with exactly $1 of value in two parts: part $DODO, part USDC. $oneDODO Governance controls various parameters of the $oneDODO contract and selects the investment strategy for the $oneDODO treasury’s funds. $oneDODO Governance may also upgrade the $oneDODO contract’s code or implement new investment strategies, though these actions require the approval of the ICHI DAO.

Governance within the ICHI system is divided into two sections based on scope of authority:

  1. Global (ICHI) Governance - provides boundaries in which local/instance governance can operate. (Read more about ICHI governance here.)
  2. $oneDODO Governance - can make adjustments to parameters affecting a single oneToken instance.

The DODO DAO can perform any $oneDODO governance actions directly by passing a proposal, but a 4-of-7 multisignature scheme will be used for day-to-day operations. Two of the signers will be nominated from the ICHI DAO community, and four will be nominated from the DODO DAO community. Here are the initial nominations:

  • radarbear (DODO DAO): 0x9c59990ec0177d87ED7D60A56F584E6b06C639a2
  • raymonde (DODO DAO): 0x41e9640Fa42D8056DaC5108CF979837ba1c157D6
  • Jeffrey (DODO DAO): 0xEfc2D0DE96468C829f688C88E89998Cc447388e0
  • Owen (DODO DAO): 0x2A3210A158a396B34A56AC941c4a3D1c24D3E5A7
  • wenqing.eth (Treasury DAO): 0xd77Dd8754c5f3c63BA18cD17bf2f6dC60EE14E6F
  • 37Aces (ICHI DAO): 0x0dd4C0c16Fff6693e169Ef89235Cb92F9D8943EE
  • Dhtal (ICHI DAO): 0xaD187f2D2e7957411475f7a66F1Fff273b38cAd5

A DODO DAO proposal and successful vote is required to replace a DODO signer with a new one, to replace an ICHI signer with a DODO signer, or to change the threshold and number of signers. An ICHI DAO vote is required to replace an ICHI signer with a new ICHI signer.

Signing Process

The ICHI DAO will submit recommended transactions and provide a summary of each transaction to the DODO DAO signers. DODO signer(s) will confirm that it is a permitted transaction and (if so) execute it in a timely manner. This signing process may only be altered by DODO DAO vote.

Permitted Transactions

The DODO DAO may perform any $oneDODO governance action via proposal, but the 3-of-7 multisignature scheme may only sign the following transaction types as recommended by the ICHI DAO:

  1. Adjusting the Minting Ratio
  2. Executing a rebalance transaction to maintain the minimum treasury reserve ratio using a $oneDODO Strategy contract
  3. Executing an arbitrage transaction to maintain the price of $oneDODO at $1 using a $oneDODO Strategy contract
  4. Creating or changing DeFi positions using a $oneDODO Strategy contract
  5. Claiming profits/yield, paying the $oneDODO treasury (80%), ICHI stakers (10%), and any affiliate (by default ICHI stakers, 10%) using a $oneDODO Strategy contract.
  6. Changing the Oracle or MintMaster contract
  7. Enabling Strategy contracts, admitted by the ICHI DAO, that perform 1-6 on behalf of $oneDODO Governance.

No other transaction types will be permitted without a proposal and successful vote from the DODO DAO. A DODO DAO security review is required prior to any contract code changes to confirm that the new code does substantially the same thing. These limitations will be enforced by an on-chain mechanism approved by the DODO DAO’s Security Workstream.

Limitations on Permitted Transactions

  1. USDC is the only permitted collateral for minting
  2. The minimum treasury reserve ratio is 200%
  3. The target treasury reserve ratio is 250%
  4. The minimum minting ratio is 90%
  5. The $oneDODO contract must remain in control of all assets (collateral and treasury) backing $oneDODO (ie, no ‘spending’)
  6. Transactions may not create a position that isn’t whitelisted by the ICHI DAO
  7. Transactions may not allocate more value to a position than recommended by the ICHI DAO
  8. $oneDODO DeFi positions must directly support $oneDODO/$DODO liquidity (AMM/Lending Platform) or DeFi insurance liquidity for $oneDODO, $DODO, and/or ICHI.

A DODO DAO proposal and successful vote is required to adjust any of these limitations.