Proposal Summary:

This proposal aims to approve modifications to the RealToken Wrapper on RMMv3 and transfer the responsibility for executing new functions to the Realtoken DAO. These changes will allow managing special cases related to RealTokens while ensuring decentralized control to prevent abuse and total transparency. The vote on this proposal therefore aims to validate that the DAO will take control of the execution of the RealTokens recovery functions on the RMM Wrapper, the DAO will have a verifier/security role, but cannot refuse execution if it complies with the planned process.

Motivation:

1. Address specific requirements of different types of RealTokens in RMMv3
2. Ensure the restitution and recovery of RealTokens in special cases (regulatory requirements, etc.)
3. Guarantee the proper functioning of processes related to the life of RealTokens
4. Establish decentralized control to prevent manipulation and abuse
5. Total transparency on processes related to RealTokens on RMMv3

Context:

RealT offers several types of RealTokens, each with specific requirements. In order to benefit from RMMv3 with a maximum of RealToken types and meet regulatory requirements, we must be able to safely extract RealTokens from RMMv3 in cases where the investor cannot do it by their own means.

For example, DEBT tokens will need to be partially or fully burned at some point. If they are on RMMv3, we cannot burn them without creating uncollateralized debt problems.

This is why the RealToken Wrapper needs to be updated with new functionalities that allow the DAO governance to repay a user's debt in the same transaction as withdrawing the concerned realtokens.

1. Modifications to the RealToken Wrapper contract:
   • Removal of redundant _isRealTokenWhitelisted verification
   • Gas usage optimization with a cached user token array
   • Addition of new functions repayForRecover and recoverByGovernance
2. Transfer of execution responsibility to the DAO:
   • The DAO will be responsible for executing new functions on RealT's proposal
   • These functions will be limited to addresses with the GOVERNANCE_ROLE
   • Applicable only to RealTokens, not to other RMMv3 assets (USDC and XDAI)
3. Control process:
   • RealT will submit proposals to the DAO for executing these functions
   • The DAO will review and vote on these proposals to validate execution

Implementation Steps:

1. Audit of modified code by an independent third party (already completed)
2. DAO vote to approve modifications and transfer of responsibility
3. Update of the RealToken Wrapper contract on RMMv3
4. Configuration of governance roles for the DAO
5. Comprehensive testing of new functionalities
6. Training of DAO members on the review and execution process

Roadmap:

• Code audit: 2-3 weeks (already completed)
• Discussions on the governance forum: 7 days
• DAO vote: 7 days
• Queue: 2 day

Budget:

No additional costs for the DAO except for transaction fees.

Financial Implications:

• Audit and development costs
• Potential increase in gas fees for certain operations
• No penalties or fees for investors who use these functionalities (possibility in the future to add fees with a new contract update)

Team:

• RealT technical team for implementation
• External auditors for code verification

Success Metrics:

1. Successful implementation of contract modifications
2. Absence of security issues after deployment
3. Efficient and responsible execution of new functions by the DAO
4. Successful resolution of special cases related to RealTokens

Alignment with Mission:

This proposal aligns with the Realtoken DAO's mission by ensuring efficient management of RealTokens while strengthening the decentralization and transparency of the ecosystem. By controlling the execution of functions, governance demonstrates transparency and ensures that RMMv3 remains a secure and reliable ecosystem.

Key Terms:

• RMMv3: Realtoken Money Market v3
• RealToken Wrapper: Contract allowing interaction of RealTokens with RMMv3
• GOVERNANCE_ROLE: Specific role assigned to addresses authorized to execute governance functions

Proposal on the governance forum