Governance

Aside from the traders or liquidity providers who use and interact with the protocol, there are other roles in the system that are crucial in shaping the maintainability and stability of Increment, listed below:

Governance: 0xcce2065c1DC423451530BF7B493243234Ba1E849 [This is the address of the on-chain governor, which would become the governance address once the protocol is deployed]

The governance address is owned by the Increment community that governs the protocol, it can perform the following actions:

• Add a trading pair to the list of supported markets with the allowListPerpetual function.

• Set key protocol economic parameters.

• Add a new token to the list of allowlisted ERC20 tokens which can be used as collateral.

• Remove some of the insurance funds collected when traders open/extend positions with the removeInsurance function. It's important to note that the insurance amount must be above the insurance ratio of the TVL in the vault to allow governance to withdraw funds. The insurance quota measures the percentage of TVL that should be held in insurance reserves and can be changed by governance.

Emergency Admin: 0x4f05E10B7e60D5b18c38a723d9469b4962C288D9

The Emergency Admin address is owned by a multisig, which is currently made up of 7 core contributors and governance delegates of the Increment protocol. It can solely perform the following three actions:

• Put the protocol (or a single perpetual market) on pause if it's active (with the pause function) or unpause it if it's locked (with the unpause function).

• Pause or unpause the opening of trading positions with the toggleTradingExpansionPause function. This does not have any affect on closing or reducing trading positions nor liquidity provision positions.

• Curve's CryptoSwap markets on which Increment relies to operate sometimes generate "dust" during swaps. Dust describes very small amounts of market tokens that can't be swapped in the pool, e.g. 2 or 3 units of vUSD. These dust amounts are collected by the protocol. sellDust is the function by which the manager can sell the collated dust amounts on the market.

Additional details on the governance and emergency admin roles are listed in the tables below:

ClearingHouse Contract

Role	Method	Description
Emergency Admin	sellDust	Sell the accrued dust amounts on the market (a very small amounts of market tokens that can't be swapped
Emergency Admin	pause	Put the protocol (or a single perpetual market) on hold if it's active
Emergency Admin	unpause	Unlock the protocol (or a single perpetual market) if it's locked
Governance	setParameters	Set key protocol risk parameters such as min margin requirements, insurance ratio, etc. See the full list in economic parameters.
Governance	allowListPerpetual	Add a trading pair to supported markets
Governance	addRewardContract	Add a reward distributor contract (i.e., PerpRewardDistributor)

Perpetual Contract

Role	Method	Description
Emergency Admin	pause	Put the protocol (or a single perpetual market) on hold if it's active
Emergency Admin	unpause	Unlock the protocol (or a single perpetual market) if it's locked
Emergency Admin	toggleTradingExpansionPause	Pause/unpause trading operations tapping into the liquidity (i.e. opening and extending positions)
Governance	setParameters	Set key protocol parameters such as sensitivity, insuranceFee, twap frequency, etc. See economic parameters.

Insurance Contract

Role	Method
Governance	removeInsurance	Once the insurance reserve exceed a certain ratio of the TVL, the insurance fees can be withdrawn
Governance	setClearingHouse	Set new address of ClearingHouse contracts

Oracle Contract

Role	Method	Description
Governance	setOracle	Set or update an oracle address
Governance	setFixedPrice	Set a fixed price for an asset
Governance	setHeartBeat	Set or update the heartbeat of an oracle
Governance	setSequencerUptimeFeed	Set a L2 sequencer upTime feed
Governance	setGracePeriod	Set a grace period for the L2 Sequencer to come back up

Vault Contract

Role	Method	Description
Governance	addWhiteListedCollateral	Add a new token to the list of allowlisted ERC20 used as collateral
Governance	changeCollateralWeight	Change weight of a white listed collateral
Governance	changeCollateralMaxAmount	Change the maximum amount of tokens that can be deposited
Governance	setClearingHouse	Set the ClearingHouse address
Governance	setInsurance	Set the Insurance address
Governance	setOracle	Set the Oracle address

EcosystemReserve Contract

Role	Method	Description
Governance	approve	Allow an address to transfer some amount of a given token from the reserve
Governance	transfer	Transfer some amount of a given token from the reserve to a recipient
Governance	transferAdmin	Transfer the funds admin role to a new address

RewardDistributor Contracts

Including the PerpRewardDistributor and SMRewardDistributor contracts

Role	Method	Description
Governance	updateRewardWeights	Set the percentage of reward emissions to be accrued to each market for a given reward token
Governance	updateInitialInflationRate	Set the initial inflation rate used for calculating emissions for a given reward token
Governance	updateReductionFactor	Set the reduction factor used for calculating emissions for a given reward token
Governance	addRewardToken	Add a new token to the list of supported reward tokens
Governance	removeRewardToken	Remove a token from the list of supported reward tokens, and return any unaccrued rewards from the EcosystemReserve

PerpRewardDistributor Contract

Role	Method	Description
Emergency Admin	pause	Put claiming rewards on hold if active (does not pause reward accrual)
Emergency Admin	unpause	Unlock claiming rewards if locked
Emergency Admin	togglePausedRewards	Pause or unpause reward accrual for a particular reward token
Governance	setEarlyWithdrawalThreshold	Set the early withdrawal threshold used to penalize users who withdraw liquidity too soon
Governance	initMarketStartTime	Set the timeOfLastCumRewardUpdate for a given market to the current timestamp if it isn't set

SMRewardDistributor Contract

Role	Method	Description
Governance	pause	Put claiming rewards on hold if active (does not pause reward accrual)
Governance	unpause	Unlock claiming rewards if locked
Governance	togglePausedRewards	Pause or unpause reward accrual for a particular reward token
Governance	setSafetyModule	Set the SafetyModule contract address from which to get the addresses of the staked token contracts
Governance	setMaxRewardMultiplier	Set the upper limit for the reward multiplier users earn for staking their tokens longer
Governance	setSmoothingValue	Set the smoothing value used to calculate the reward multiplier

SafetyModule Contract

Role	Method	Description
Governance	pause	Put staking, redeeming and transferring on hold for all staked tokens if active (does not pause reward accrual)
Governance	unpause	Unlock staking, redeeming and transferring for all staked tokens if locked
Governance	addStakingToken	Add a new StakedToken contract address to the list of supported staked tokens
Governance	setRewardDistributor	Set the SMRewardDistributor contract address for handling reward accrual to stakers
Governance	setAuctionModule	Set the AuctionModule contract address for handling auctions of slashed tokens
Governance	slashAndStartAuction	Slash a percentage of staked tokens from all users and start an auction in the AuctionModule
Governance	terminateAuction	Terminate an auction in the AuctionModule, return any remaining tokens to the StakedToken and settle slashing
Governance	returnFunds	Transfer underlying tokens from an approved address to the corresponding StakedToken, raising its exchange rate
Governance	withdrawFundsRaisedFromAuction	Transfer tokens raised in an auction from the AuctionModule to governance

AuctionModule Contract

Role	Method	Description
Governance	pause	Put creating, completing and bidding in auctions on hold if active
Governance	unpause	Unlock creating, completing and bidding in auctions if locked
Governance	setSafetyModule	Set the SafetyModule contract allowed to start and terminate auctions
Governance	setPaymentToken	Set the payment token used for purchasing lots in auctions

StakedToken Contract

Role	Method	Description
Governance	pause	Put staking, redeeming and transferring on hold if active (does not pause reward accrual)
Governance	unpause	Unlock staking, redeeming and transferring if locked
Governance	setSafetyModule	Set the SafetyModule contract allowed to slash tokens, return funds and settle slashing
Governance	setMaxStakeAmount	Set the maximum amount of tokens that can be staked by a user