5Table New Feature: Governance
A big step towards reducing centralization and increasing the security of protocol
5Table New Feature: Governance. Security is a top priority at 5table Finance, and they work with the highest standards in the industry to ensure that their users are safe while using their protocol.
Unlike most other projects, we have not audited just one contract, but all the contracts involved in our protocol (12 smart contracts). This choice of auditing the whole protocol is a clear sign that we care about security for real and we work to improve it.
All the issues that were found in the audit report were addressed and solved, but one important issue needed a bigger development to be solved efficiently without having a negative impact on the operation of the protocol.
What was this issue about?
The main stablecoin vault uses a strategy contract that executes multiple operations automatically, turning that stablecoins into different stablecoins LPs and staking them across different farms and platforms.
Until now they were able to change those farms as they consider best without any restrictions, aiming to have a dynamic approach that could allow us to provide the most efficient strategy and therefore the highest APY on the whole network. But with that approach, there was a centralization risk, because we were able to move funds around without restrictions.
The solution
They needed to build a solution that eliminates centralization risks at the same time that we could continue to move funds around different farms dynamically looking for the best opportunities.
They came up with a DAO-related solution that involves governance from the holders. This way they can continue to add new farms and change allocation but only after the holders of the token approve (or not) that decision.
After building the solution, they have tested it heavily because it is an extremely sensitive feature to deploy since it implies renouncing ownership of the contract. Now the governance feature is deployed and all the holders can vote on the path of 5table Finance protocol.
The governance feature will not only be to decide the stablecoin vault strategy, but also for other important decisions about 5table Finance protocol
How does the governance feature actually work?
There are some things that we will still be allowed to do and some others that we won’t and will be subjected to vote among the holders.
They will be able to add new strategies contracts (new farms) to the main strategy contract of the vault, but with 0 (zero) allocation. This will allow to later propose the votes including the new recommended farms.
The holders will be able to vote on the following things about the main stablecoin vault:
- A) Change the allocation of funds between the existing farms.
- B) Move funds from one farm (X) to another farm (Y).
- C) Options A & B combined: Change the allocation of funds between the existing farms, and move funds from a farm (X) to another farm (Y).
Holders will be also be allow to vote on different decisions about the protocol path. Future developments, & any decision around 5table Finance future. There will be decisions of different grades of importance here, & more governance features will be deploy in the future to build a more democratic protocol.
About 5table Finance
5table Finance is an advanced multichain, decentralized protocol that will allow you to find the best investment opportunities for your stable coins in order to protect your invested capital, obtaining the best profitability that the market can offer, in a safe and sustainable platform.
