Governance Powers

BOUND holders exercise control over critical protocol functions through graduated decision-making authority. BOUND holders powers include:

1

Treasury and Economic Parameters

Direct community control over treasury allocation, fee adjustments, reward distribution, and the critical 10%/90% split between emissions and burning. The community determines how protocol revenue supports governance sustainability.

2

Protocol Infrastructure

Authority to add or modify collateral strategies, adjusting which yield-generating positions back DFY stablecoin tokens. Governance decides which tokenized strategies from Avantgarde or other providers qualify as acceptable collateral, optimizing risk and return profiles.

3

Risk Management

Setting collateralization ratios, buffer requirements, and liquidation parameters that maintain protocol stability. The community balances security with capital efficiency through these critical decisions.

4

Emergency Responses

In extreme scenarios, governance can vote to restructure protocol positions, converting yield strategies to stable assets or adjusting liquidity provisions to protect user funds.

These powers ensure BOUND holders maintain genuine control over protocol evolution, from routine parameter adjustments to fundamental strategic decisions.