Gearbox DAO

Overview

This proposal is to set the new ControllerTimelockV3 contract as controller for various contracts and set up policies for parameter changes. Additionally, a misconfiguration is fixed for V2 Credit Managers that still have open accounts.

ControllerTimelock logic

Certain functions in GearboxV3 contracts are marked as controllerOnly, which means a special controller separate from the main system configurator can be set, and will be able to call these functions. This enables appointing limited-privilege admins to change system parameters without waiting for the main 2-day timelock (and having to mobilize the main multisig), which may be crucial to react to attacks, changing market conditions and other risk events.

ControllerTimelockV3 will be set as such “controller” in all contracts that support it. It will then allow DAO-appointed admins to change parameters within certain boundaries defined by a “policy”, and under a shorter timelock.

Controller parameters

For the full list of affected contracts, admins and policies, refer to the specification: https://docs.google.com/document/d/1VrTTAxMnAB3YY-nYYRCsJ5N0O0QSvoZq7nf6mdLkXgw/edit?usp=sharing

Setting V2 Credit Facades as pausableAdmin

V2.1 update brought some logic changes that required Credit Facades to be set as pausableAdmin in ACL. Not doing so would lead to liquidations with loss potentially being blocked under some circumstances.

While original V2.1 Credit Facades were set as pausableAdmin, they were soon replaced with newer versions, for which this was not done. Therefore, we propose to set USDC and WETH V2 Credit Facades as pausableAdmin in the ACL contract. Note that CMs other than USDC / WETH have no open accounts and can no longer borrow, hence no action is required for them.

Emergency liquidators

Emergency liquidators are DAO-appointed addresses that are able to liquidate accounts while contracts are paused. They protect against any bad debt incurred if contracts are paused due to a circuit breaker or manually due to detected suspicious activity.

It is proposed to set the following addresses as emergency liquidators:

1. 0x7BD9c8161836b1F402233E80F55E3CaE0Fde4d87
2. 0x16040e932b5Ac7A3aB23b88a2f230B4185727b0d

These addresses are EOAs for liquidation bots currently run by the backend initiative.