🔥 Decentralized Circuit Breaker

What is the problem your project is trying to solve?

Our project is aiming to solve the problem of centralized decision-making in the aftermath of a Circuit Breaker event. Currently, the EIP-7265 token standard triggers a halt on protocol-wide token outflows, but once this Circuit Breaker is triggered, the decision-making power is primarily in the hands of the protocol's admins. Our project aims to democratize this process.

How does your project solve this problem?

Our project, the Decentralized Circuit Breaker, improves upon the existing EIP-7265 by introducing a governance dispute handling mechanism. This means that once the Circuit Breaker is triggered, rather than having the admins make unilateral decisions, all parties involved can democratically decide on the course of action.

Why is a decentralized approach important?

A decentralized approach is important as it ensures fair and transparent decision-making. It minimizes the risk of decisions made out of self-interest by a few individuals and maximizes the involvement of all affected parties, fostering a more resilient and trustable protocol.

What are the potential benefits of your project?

By decentralizing decision-making, we ensure that the interests of all parties are taken into account rather than just those of the admins. This can lead to more fair outcomes, fostering trust within the community. Moreover, in circumstances where the Circuit Breaker is triggered not because of fraudulent activities but due to large scale legitimate actions, such as a whale deciding to exit, the democratic process can prevent unnecessary freeze of the protocol.

How did we improve the current EIP-7265?

Our project will introduce a democratic process to handle disputes and decisions post triggering of the Circuit Breaker. This ensures not only greater fairness and transparency but also a stronger resilience against potential misuse of the current system where admins hold the power to decide the next steps.

Frontend: React + Snapshot for governance proposals Smart Contracts: OpenZeppelin Governor for on-chain governance, Previous Hack replication, integrating a circuit-breaker

As for the hacky parts : since we were building on an existing open-source frontend and integrating it with Snapshot, there were instances where we had to find clever ways to bridge the two systems. One notable part was adapting the frontend's existing components and logic to interact smoothly with Snapshot's voting mechanism.