dYdX v3 Governance Architecture

Overview of the dYdX v3 Governance Architecture

V3 Governance Architecture

DYDX grants holders the right to propose and vote on changes to the dYdX v3 protocol on Ethereum. DYDX governance is based on the AAVE governance contracts, and supports voting based on DYDX token holdings.

Proposals must pass a given threshold and percent of yes votes based on the type of timelock that the subject matter of the respective proposal falls under.

These DYDX tokens can be used to make governance proposals or vote on governance proposals or be delegated to other Ethereum addresses.

Per the V3 governance architecture available here, there are 6 smart contracts at the core of dYdX v3 Governance on Ethereum:

• The DYDX Token contract: has snapshots of each address’ voting power at different blocks in time.

• The GovernanceStrategy contract: contains logic to measure users' relative power to propose and vote.

• The Safety Module contract: contains logics to stake DYDX tokens, tokenize the position and get rewards. Token staked the safety module retain full governance rights.

• The Governor contract: tracks proposals and can execute proposals via the Timelock smart contract.

• The Timelock contracts: can queue, cancel, or execute transactions voted by Governance. The functions in a proposal are initiated by the Timelock contract. Queued transactions can be executed after a delay and before the expiration of the grace period.

• The Priority Timelock contract: The same as the timelock contract, but allows a priority controller to execute transactions within the Priority Period (7 days) before the end of the timelock delay.

Simplified dYdX v3 Governance Architecture

The following subset of contracts have been deployed on Ethereum mainnet:

Contract	Address
DydxToken	0x92D6C1e31e14520e676a687F0a93788B716BEff5
DydxGovernor	0x7E9B1672616FF6D6629Ef2879419aaE79A9018D2
Short Timelock Executor	0x64c7d40c07EFAbec2AafdC243bF59eaF2195c6dc
Rewards Treasury	0x639192D54431F8c816368D3FB4107Bc168d0E871
Community Treasury	0xE710CEd57456D3A16152c32835B5FB4E72D9eA5b
Safety Module	0x65f7BA4Ec257AF7c55fd5854E5f6356bBd0fb8EC
GovernanceStrategy	0x90Dfd35F4a0BB2d30CDf66508085e33C353475D9
Rewards Treasury Vester	0xb9431E19B29B952d9358025f680077C3Fd37292f
Community Treasury Vester	0x08a90Fe0741B7DeF03fB290cc7B273F1855767D8

Open-source code & audited

All smart contract source code for the governance contracts and staking pools can be found at https://github.com/dydxfoundation/governance-contracts.

The source code for the governance frontend hosted at dydx.community can be found here.

All major smart contracts have been audited by Peckshield. No significant or high priority security issues were found. The core governance and token contracts are forked from the Aave governance contracts which were audited by CertiK, Certora, and Peckshield and have been battle-tested live on mainnet.

Resources

• V3 Governance Documentation