Summary

This SIP proposes replacing the RAFT contract on each supported network (Base, Arbitrum, Ethereum and Sonic). The upgraded RAFT contract introduces functionality to allow governance to socialize losses within a vault, likely useful once Guardians are introduced who can pause Vaults.

Motivation

This SIP is in response to https://forum.summer.fi/t/rfc-arbitrum-usdc-vault-next-steps-dealing-with-usdx-bad-debt/458 and ensuring there is and can be a clear process and clear audit trail onchain.

This upgrade is necessary to enable clear and easy ways for governance to be able to socialize losses within a vault for a particular market, when combined with enabled guardians who can freeze the market while Governance takes action.

It also adds additional protections to sweepable markets, ensuring governance can add certain tokens to a blacklist too.

Specifications

Newly deployed raft contracts:

• base: 0x7839d904D05d3D6B5F1D87eb93e1dcD5746AbC6E
• arbitrum: 0x60A81C58F37527FdEcc968FC8B834Ed00b65926d
• mainnet: 0xEcCd16aA1ae0B32b231a3B5FFE8567aBf68616E2
• sonic: 0x2a828B0E5cB549eE568923E815D9A781b6f4F018

Actions

1. On base:
   • Set raft address on base to 0x7839d904D05d3D6B5F1D87eb93e1dcD5746AbC6E
2. Send cross-chain proposal to arbitrum to:
   • Set raft address on arbitrum to 0x60A81C58F37527FdEcc968FC8B834Ed00b65926d
3. Send cross-chain proposal to mainnet to:
   • Set raft address on mainnet to 0xEcCd16aA1ae0B32b231a3B5FFE8567aBf68616E2
4. Send cross-chain proposal to sonic to:
   • Set raft address on sonic to 0x2a828B0E5cB549eE568923E815D9A781b6f4F018

Technical Details

The raft contract is used to handle reward token auctions. It updates the Raft contract to handle tokens with self transfer functionality blocked.

##Risk Assessment This SIP introduces no additional risks, but relies on governance to decide how to handle receipt tokens once collected into the treasury after socialized losses and been executed.

##Voting A YES vote for this SIP will replace the existing RAFT contract addresses with the newly deployed RAFT contracts and will be used moving forward. A NO vote would leave the existing RAFT contracts as they are, making no changes to the protocol.