Governance

Governance

Owner (Coinshift, Steakhouse Financial, and Paxos International)

• Composition: A 3-of-5 multi-signature committee

• Responsibilities: Sets high-level vault strategies and assigns roles.

Curator (Steakhouse Financial)

• Role: Sets vault parameters such as adding or removing markets, reallocating capital, adjusting performance fees (as a percentage of borrower rates), and setting supply and borrow caps.

• Function: Ensures the vault's activities align with risk and optimization strategies. However, actions like adding a market or increasing fees are subject to a time delay (1 to 14 days).

Allocator (Steakhouse Financial & Public Allocator Contract)

• Role: Dynamically optimizes fund allocation within established parameters.

• Function: Adjusts allocations to optimize yields while managing risk.

Guardian (Coinshift Security Council, later: DAO made up of vault depositors)

• Role: Monitors and provides oversight, with the ability to veto actions within a specified timelock.

• Function: Protects user interests by overseeing vault activities and intervening when necessary.

Timelock

• Security Feature: Timelocks introduce a waiting period before significant actions are executed in Morpho Vaults.

• User Control: Steakhouse curates with a 7-day delay for changes, giving users time to review. Using Aragon DAO guardians, capital suppliers can vote to revoke curator actions. This setup keeps the vault non-custodial, ensuring users maintain control and can withdraw assets anytime.

• Risk Management: Applies to changes that could increase vault risk (e.g., high LLTV markets, supply cap adjustments).

• Transparency: Users can inspect timelock values in the "Read Contract" section of the vault for oversight.