IIP-121: Extend FLI Parameter Delegation

IIP: 121
Title: Extend FLI Parameter Delegation
Status: Proposed
Authors: @overanalyser @allan.g
Created: 3 January 2022

Simple Summary

Extend IIP-56 for the delegation of FLI parameter management to the FLI Work Team indefinitely.

Abstract

IIP-45 established a work team composed of Index Coop contributors, DeFi Pulse, and Set Labs who were given collective authority to update FLI product parameters. Subsequently, IIP-56 extended this delegation through 31st January 2022.

This proposal seeks to extend the delegation indefinitely, with automatic renewal at the time of Index Council elections.

Motivation

IIP-45 was originally proposed to allow a small set of subject matter experts to manage the risk parameters associated with FLI products without requiring individual IIP’s.

This delegated authority has been utilized on a number of occasions:

Larger, more material changes to the FLI products still require IIPs and snapshot votes as they are outside the scope of the delegation (ex. Multiple exchange support)

Altogether, the delegation of responsibility has worked as planned to reduce governance overhead while allowing the FLI Work Team to act quickly on behalf of the Index Coop.

Specification

The FLI Work Team will be comprised of individuals from the following groups:

The process will be:

  1. The FLI Work Team will discuss and identify parameter change requirements.
  2. A member of the FLI Work Team will post a short description of the change to the forum and state that the FLI work team is in agreement (a poll is not required).
  3. The forum post must be live for 24 hours without any dissent from other FLI Work Team members.
  4. The change can then be made once these criteria are met.

In scope parameters include:

  • Supply Cap
  • Max Trade Size
  • Slippage Tolerance
  • Ripcord Max Trade Size
  • Ripcord Slippage Tolerance

Out of scope parameters include:

  • Changes to the bot whitelist parameter (ex. IIP-39)
  • Fees for the product
  • Recentering Speed
  • DEXs for Rebalancing

This delegation will renew automatically after each Index Council election cycle, unless otherwise opposed or revoked.

IIP vote specification:

FOR

  • Extend the mandate for the FLI Work Team and delegate parameter management indefinitely.

AGAINST

  • Allow Delegation to lapse on the 31st January 2022, and revert to IIP and Snapshot for all parameter changes.

Copyright

Copyright and related rights waived via CCO.

7 Likes

Hi Allan, noob question here. I see the original (IIP-56) passed without any dissent and the in scope parameters look benign (from what I understand). Are there any risks you could imagine by granting the ongoing delegation? It looks like the internal change process across DeFi Pulse, Set, and AIP (wt > to comment > no dissent ) is pretty robust.

1 Like

hey Shawn - great question! Because we have spread out the responsibility across the three teams you mentioned, there is little to no risk borne by the community for this particular delegation. Our Pod has developed some risk tooling for the primary parameters in scope, and while there are definitely opportunities for improvement within risk management more generally, delegating parameter management to this team reduces overall risk for the community.

The clause regarding delegation renewal after council elections also ensures that we address turnover within the work team and revisit in scope parameters as needed; you can think of it as guard rails for the delegated authority!

3 Likes

@Mringz could you please provide an IIP # for this proposal and have it queued up for snapshot? Thanks in advance!

3 Likes

Hey @allan.g an IIP number (121) has been assigned, and the proposal has been queued to go live on snapshot later today at 1800 UTC.

Snapshot here

1 Like