Abstract

This proposal intends for the TrueFi DAO to claim ownership of tfLP liquidity pools in the TrueFi protocol. The goal of this proposal is to extend the decentralization of the protocol.

By claiming proxy ownership, the DAO will fully control upgrades for these smart contracts. Therefore, the only way to modify the code or logic for these contracts would be through a governance vote on-chain.

Motivation

The TrueFi protocol includes 4 permissionless pools: tfTUSD, tfUSDC, tfUSDT, tfBUSD. The liquidity in these pools has been controlled by stkTRU votes, but the actual ownership of the smart contracts has been managed by a multisig. In order for these pools to be truly decentralized, control of upgrades to these contracts must be controlled by the TrueFi DAO. Claiming ownership of these contracts allows the DAO to fully own and operate its own liquidity pools.

Summary

TrueFi uses a smart contract proxy pattern - each contract consists of a proxy (public facing address) and an implementation (actual code). Code from the implementation is loaded into the proxy contract every time someone wants to interact with the smart contract. The proxy owner has the ability to change the implementation contract in order to add new functionality or logic.

In order to control the smart contract proxies, a function call needs to be made to each liquidity pool proxy address. Before the claimProxyOwnership() function can be called, the previous owner multisig will call the transferProxyOwenrship() function.