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The scheme and description of main components of Overnight DAO
Scheme DAO of Overnight
The OVN token serves as the governance token within the Overnight ecosystem, granting voting rights for decentralized risk management. It encourages the alignment of community incentives by rewarding support for conservative risk decisions and vetoing aggressive ones. OVN token holders can influence the protocol by creating and accepting proposals.
OVN Holders are individuals who possess OVN tokens in their wallets on the Optimism chain. OVN Holders have the authority to vote through OVN Governance and can initiate proposals. Each OVN Holder's voting power is equivalent to the number of OVN tokens held.
OVN LP tokens are rewarded to users for providing liquidity in pools with OVN tokens. OVN LP and OVN holders can participate in voting and create proposals for protocol changes. To become an OVN LP holder, one must stake OVN tokens in pools with OVN tokens, such as those on Aerodrom or Velodrome.
There are 2 types of timelocks:
- Agent Timelock - This smart contract imposes a 6-hour delay between the end of a vote and its acceptance at OVN Agent. It also requires a consensus from 3 out of 5 signers to reach a quorum.
Different types of timelocks take different times from a couple of hours to several days
The OVN Agent serves as a protocol proxy, operating as a multisignature (Gnosis Safe) wallet that enforces governance and community-driven solutions. It plays a crucial role in expediting protocol management, providing a swift alternative to the potentially lengthy process associated with Mother Governance.
The OVN Agent wallet is dedicated to managing the protocol on behalf of the community, facilitating necessary modifications in a remarkably short timeframe. This agility stands in stark contrast to Mother Governance. The time required for protocol adjustments corresponds to the specified time lock variable within the smart contract.
OVN Agents are strategically positioned across all networks that implement the USD+ protocol. These agents serve as the implementers of solutions proposed by OVN token holders. If an OVN Agent operates on the Optimism network, it receives a direct assignment from OVN Governance. In cases where the OVN Agent is on a different network, the assignment process involves the Axelar Gateway. The Axelar Gateway is a bridge facilitating transactions between different blockchain networks. It enables cross-chain communication between contracts. OVN Agents play a pivotal role in executing decisions ratified by the community through snapshot mechanisms.
Process of setting new OVN Agent
Process of Agent OVN upgrading protocol
Snapshot is a voting platform that enables easy and gas-free voting for DAOs, DeFi protocols, and NFT communities.
Snapshot aggregates balances from all pools across various networks and conducts snapshots for users eligible to vote.
This wallet manages portfolio weights, decides on investment strategies, and allocates funds.It determines how much to invest.The selection of the Portfolio Manager Agent occurs through a Snapshot by OVN and OVN_LP holders