Governance Scope

What is being governed?

Overview

Mento Governance controls the following components:

• A suite of Smart Contracts deployed on the Celo Mainnet;

• A Protocol Reserve whose funds are held on Celo, Ethereum, and Bitcoin in a variety of ways:

  • Custodians;

  • Multi-signature wallets;

  • LP tokens of Reserve positions in various liquidity pools;

  • ReserveSpender Multisig rights

Smart Contracts

The Mento Protocol includes the following upgradeable Smart Contracts (proxies and implementations), which are currently owned by Celo Governance:

• BiPoolManagerProxy

• BreakerBox

• BrokerProxy

• MedianDeltaBreaker

• ReserveProxy

• StableTokenXXXProxy (one per Mento Stablecoin, i.e. cUSD)

• ValueDeltaBreaker

A Celo Governance Proposal to transfer ownership over all the above proxies and their implementations to Mento Governance will be submitted soon.

Protocol Reserve

Mento Governance will control reserve funds via two mechanisms:

• The LP positions currently owned by Celo Governance: Initially, we opted to hold protocol-owned liquidity (POL) in the governance contract for increased transparency and community control, but this proved cumbersome for active maintenance. However, there’s a middle ground. POL holdings will be migrated to a safeguard mechanism, where Mento POL multisig is managed by Mento Labs for agile portfolio management, over which Mento Governance will have veto power.

• The ReserveSpender Multisig has spending rights over the Reserve. A group of early cLabs and Celo Foundation members currently owns it. This multisig should be removed from the Reserve during the governance transfer process, and the Mento POL multisig should be added.