Governance
Proposals, timelocks, risk tiers and the limits on emergency power.
Governance controls borrow rates, collateral factors, liquidation thresholds, supply caps, the reserve factor and treasury allocation. Because those levers are real, membership is finite — 20,500 GOV NFTs — and it moves only through a protocol auction rather than the open market.
GOV Holder → Proposal → Voting Delay → Voting Period
→ Quorum Check → Passed → Timelock → ExecutionRisk tiers
Not every parameter deserves the same ceremony. A liquidity incentive and a change to the borrow cap are not comparable decisions, and treating them identically either paralyses routine work or under-protects the dangerous kind.
| Tier | Examples | Requirement |
|---|---|---|
| 1 — Low | Liquidity incentives, minor fees, UI config | Normal governance |
| 2 — Medium | Interest rates, collateral caps, LTV, thresholds | Higher quorum, longer timelock |
| 3 — High | The borrow cap, pool reserves, upgrades, oracle changes, new collateral | Supermajority, long timelock, safeguards |
Emergency guardian
| Can | Cannot |
|---|---|
| Pause borrowing | Move pool funds |
| Pause new collateral | Withdraw treasury |
| Pause the seat sale | Change governance |
| Pause a compromised asset | Change ownership |
Concentration risk
Because GOV controls monetary policy, voting concentration is itself a protocol risk. Top-holder distribution, delegated voting power, quorum and proposal thresholds are tracked so no single holder can quietly accumulate control of monetary policy through the auction.