Re7 Labs is happy to announce the start of an upgrade to our MetaMorpho vaults by integrating a trustless guardian system through Aragon’s DAO framework. This upgrade represents a significant step towards enhancing the decentralization, transparency, and security of vault operations.
By adopting Aragon, Re7 Labs vaults will be utilizing a robust and trusted on-chain governance solution. Aragon DAOs are designed to facilitate decentralized decision-making and management. This system allows for the creation of proposals and voting mechanisms that are executed on-chain, ensuring transparency and decentralized decision making for vault depositors. The trustless guardian setup means that no single entity has control over the vaults, reducing the risk of centralized points of failure and increasing user confidence in the platform’s security.
How does it work?
Each MetaMorpho vault can have a Guardian role assigned. Guardians have a specific set of permissions on MetaMorpho vaults that allow the Guardian address to veto changes to a vault including the addition of new asset caps, increases in caps, and updates to curator and allocator roles. This allows the Guardian to prevent potential issues with the vault by sending a veto transaction during the standard vault timelock.
Aragon provides a trustless infrastructure that allows vault token holders to participate in Guardian activities. First, a DAO contract is deployed that can wrap Re7 Labs vault tokens to allow them to propose and vote on DAO actions. Then this DAO contract is added as the Guardian for the relevant vault. The result is that vault shareholders can propose and vote on Guardian transactions, specifically the veto of any upcoming changes in the vault timelock.
Re7 Labs’ move to a trustless guardian setup aligns with our mission to provide secure and reliable risk curation for our vaults. By leveraging Aragon’s infrastructure, Re7 Labs now offers users a more secure and decentralized way to interact with our vaults.