Skip to main content

STBL DAO: Structural Overview

STBL implements a dual governance structure to maintain balanced decision-making and robust risk management. This model consists of two primary entities:

  1. The Risk Committee
  2. The Governance Council

Both entities play complementary roles in ensuring the protocol's stability, resilience, and long-term success.

1. Risk Committee​

The Risk Committee is tasked with safeguarding the protocol’s financial health by managing and mitigating potential risks. It is composed of risk management experts, financial analysts, and ecosystem stakeholders with specialized knowledge of decentralized finance (DeFi) markets.

Key Responsibilities:​

  • Collateral Management: Evaluate and approve real-world assets (RWAs) used for collateral backing.
  • Market Risk Analysis: Monitor market conditions to recommend collateral adjustments and implement risk-adjusted over-collateralization models.
  • Liquidation Protocols: Establish clear mechanisms for liquidating under-collateralized positions to maintain stability.
  • Yield Distribution Management: Oversee how yields are distributed through the protocol’s treasury mechanism.
  • Default Management: Manage the Loss Reserve Pool to cover defaults and mitigate systemic risk.

The Risk Committee operates independently, ensuring impartial and data-driven decision-making to protect the protocol's peg stability and user funds.

2. Governance Council​

The Governance Council is a decentralized body composed of USST token holders who actively participate in the decision-making process. Unlike the Risk Committee, the council’s role is focused on policy creation, protocol development, and community-led decisions.

Key Responsibilities:​

  • Protocol Upgrades: Propose and vote on protocol updates, system enhancements, and smart contract modifications.
  • Fee Adjustments: Determine minting, staking, and redemption fee structures based on market dynamics.
  • Strategic Partnerships: Approve collaborations and integrations that benefit the STBL ecosystem.
  • Treasury Management: Allocate funds from the treasury to support ecosystem growth and community initiatives.
  • Community Representation: Ensure alignment with the broader community's interests by providing transparent governance.

The council uses USST staking as a mechanism to ensure that decisions are representative of long-term stakeholders.

Collaborative Decision-Making Process​

The Risk Committee and Governance Council maintain a collaborative relationship to ensure efficient protocol management:

  • The Risk Committee advises the council on risk-related issues and submits risk reports for review.
  • The Governance Council proposes and votes on major protocol changes, with the Risk Committee ensuring proposed decisions comply with risk management standards.
  • In the event of emergencies or systemic risks, the Risk Committee may exercise emergency powers to take immediate action, subject to later governance review.

This dual governance structure ensures a clear separation of responsibilities, promoting transparency, accountability, and resilience. By balancing risk management with community-driven decision-making, STBL fosters sustainable growth and a secure ecosystem for all participants.