Overview

This proposal turns on the OD redemption rate controller

Discussion

See forum discussion https://commonwealth.im/open-dollar-governance/discussion/17145-proposal-initial-collateral-factors-and-pi-controller-parameter-recommendations

Turning the controller on involves updating the system's OD oracle from the hardcoded one to the real one using the Camelot OD / WETH pool, and setting assorted parameters on the controller (e.g. noiseBarrier, kp, ki, perSecondCumulativeLeak)

Oracles

New oracles were deployed for OD/WETH pool using our audited od-relayer oracles

MAINNET_CHAINLINK_L2VALIDITY_ETH_USD_RELAYER = 0x4617Feb8B72167c3b8253a1327CddE44e54670Ce;
MAINNET_CAMELOT_OD_WETH_RELAYER = 0x43261bFF12F8D26Ae3E3ef6924Eca6FA5c32f4b6;
MAINNET_DENOMINATED_OD_USD_ORACLE = 0x53BA82f08639F5D0ac7b61471A6CAc0B2FAb7372;

The OD/USD oracle 0x43261bFF12F8D26Ae3E3ef6924Eca6FA5c32f4b6 will be updated as the new systemCoinOracle in the Oracle Relayer.

PI Controller Settings

The intended settings are listed below, and also in the Open Dollar Protocol Parameters document.

pidControllerGains

The DAO has decided to update the controller gains (kp and ki) per the recommendations of the 0xSideQuest team. See the forum discussion for more details, including a final analytical report: https://commonwealth.im/open-dollar-governance/discussion/17145-proposal-initial-collateral-factors-and-pi-controller-parameter-recommendations

kp: 144_301_433_810 // WAD 1.443014338103e-07
ki: 16_442 // WAD 1.6442e-14 

oracleRelayerParams

This proposal updates the boundaries for the redemption rate.

redemptionRateUpperBound: 1000000074561623060142516377 // RAY
redemptionRateLowerBound: 999999926985508341799701018 // RAY

pidControllerParams

This proposal makes a few additional changes to controller settings based on the recommendation of the HAI and Open Dollar community.

• Set the noise barrier to 1e18 (no noise barrier)
• Update perSecondCumulativeLeak from 30 day to 90 days

perSecondCumulativeLeak: 999_999_910_860_706_061_391_497_541  // HALF_LIFE_90_DAYS Decay constant for the integral deviation
noiseBarrier: 1000000000000000000, // No noise barrier
feedbackOutputLowerBound: -999999999999999999999999999, // (unbounded) Minimum limit for the redemption rate.
feedbackOutputUpperBound: RAD, // (unbounded) Maximum limit for the redemption rate
integralPeriodSize: 1 hours // Minimum duration required to calculate integral deviation

pidRateSetterParams

No change here.

updateRateDelay: 1 hours // Time gap between successive redemption rate adjustments

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To create your own proposal use the CLI tool od-governance-manager and submit a PR.