Sweep governance controls:
- Code updates and parameters
- Asset list and limits
- Treasury use
Stabilizers charge a fee and send it to the Treasury. Fees compensate the DAO for operating expenses, for a risk of loss, for handling redemption demands, and for the cost of maintaining buffers to provide redemption liquidity.
The Treasury holds assets as dollar-stable SWEEP. It stays fully invested in dollar assets. The protocol does not keep governance coins in a treasury, and it does not issue unvested or locked governance coins.
The Treasury can acquire money by selling newly minted governance coins.
The protocol will be motivated to mint and sell governance coins when Price/Book is high, and capitalization is less than a target value. The protocol will be motivated to buy back and burn governance coins when Price/Book is less than one, and capitalization is greater than a target value. The protocol can expand and contract to meet market needs.
- B =Book value= treasury SWEEP value
- A =Assets=~ all SWEEP
- P =Price= market capitalization
- T = Target capitalization, a target for B/A
Mint and sell SWEEPER when P/B > 2 and B/A < T
Buy and burn SWEEPER when P/B<1 and B/A > T
SWEEPER implements the OpenZeppelin updates to Compound governance.
SWEEPER is an ERC20 coin that uses OpenZeppelin code with settings for Mintable, Burnable, Pausable, and Votes (with delegation). It includes new functions to mint and sell or buy and burn SWEEPER under the right conditions.
SweepGovernor contains the standard code for timelock and execution.
Sweep will initially be governed by a multisig. The multisig will incrementally hand off permissions to on-chain voting.