System Design

Sentinel Role in IBNSCTrade

• Functionality of Sentinels: Sentinels in IBNSCTrade possess the authority to temporarily disable certain token functionalities. For instance, pausing underlying tokens ceases operations like depositing, repaying, and liquidation for those specific tokens. Similarly, pausing yield tokens halts activities like deposit, withdrawal, liquidation, and yield harvesting for the associated yield strategy. This pause control is a critical safety feature allowing for rapid response to any potential issues in the system.

Keeper Role in IBNSCTrade

• Responsibilities of Keepers: Keepers in IBNSCTrade are tasked with triggering the harvesting of yield tokens. This role is crucial for the efficient operation of the platform, ensuring the timely collection and redistribution of yields generated by various strategies.

Upgradeability of the System

• Design for Evolution: Key contracts in IBNSCTrade, such as AlchemistV2, TransmuterV2, and TransmuterBuffer, are designed to be upgradeable via proxies. This crucial architectural choice empowers the IBNSCTrade DAO with the capability and responsibility to evolve and enhance these system components as necessary.

Control Mechanisms for Yield and Underlying Tokens

• Max Loss and Pausing Protocols: Each yield token in the IBNSCTrade ecosystem is programmed with a maximum loss threshold. Exceeding this limit triggers an automatic pause, restricting functions like deposits, liquidations, and new loans. However, users can still repay loans and withdraw the yield token, but not the underlying asset.

• Underlying Token Pause: Sentinels can also pause underlying tokens (applicable to alAssets with multiple underlying tokens). This action disables functions like deposit, liquidation, and loan repayment for the affected token. However, debt can still be repaid, and users can withdraw their funds.

Administrative Controls and Governance

• Multisig and Timelock Features: The IBNSCTrade Developer Multisig oversees contract administration and manages the operational budget. The timelock multisig, holding the majority of DAO-owned IBN tokens, controls the withdrawal functions of AMO contracts. The current timelock duration is 600 seconds.

• Future Transition to veIBN Governance: Plans are underway to gradually transfer administrative controls from the developer multisig to a combination of veIBN (voting escrowed IBN) and the developer multisig, with an emphasis on increasing veIBN’s governance role over time.

IBNSCTrade’s sophisticated system design combines robust operational protocols with a flexible governance structure. This approach ensures both the security and adaptability of the platform, safeguarding user interests while allowing for continuous evolution in line with the community’s needs.