Alluo Explained
  • Welcome
    • 🧭 The Basics
  • Getting Started
    • 💻 The DeFi Web App
      • ❓ Connecting to the app
      • 🚜 Depositing into the farms
      • 🙌 Other basics
      • 🏦 Importing your Mobile app wallet to Metamask
      • 🧬 Add the polygon network manually in Metamask.
      • ⛓️ Bridging Stablecoins from another chain
    • 📱The Mobile app
      • 🏗️ Setting up your account
      • 🏦 Depositing money into the app
      • 🙌 Other basics
      • 🔐 Exporting your private key
    • 📖Tech deep dive: Contract Address Library
  • Understanding Alluo
    • 💵 How does Alluo get the yield?
      • 🐰 Going deeper into the Alluo protocol rabbit hole
    • 🧐 FAQ
  • Tokens & Tokenomics
    • 🪙 The tokens
    • 👨‍🔬Tech deep dive: Interest Bearing {asset} token
      • Depositing
      • Withdrawals
      • IbAlluo on different chains
      • StIbAlluo and Superfluid
        • A closer look at the integration between IbAlluo and StIbAlluo
      • Using the IbAlluo contract directly to create streams
      • Liquidity Handler and adapters
        • Deposit process with the Liquidity Handler
        • Withdraw process with the Liquidity Handler
    • 📈 Tokenomics
    • 👨‍🔬Tech deep dive: Boosting yield by compounding rewards
      • Deposit into the Vault
      • Withdraw from the Vault
      • Redeem rewards
      • Automatic boosting with Alluo
      • FraxConvex Vaults
      • Managing withdrawal requests in IERC4626
  • Decentralisation and Trust
    • 🗳️ Trustless governance and execution
    • 👨‍🔬Tech deep dive: Vote Executor Architecture
      • Off chain votes to on chain data
      • Onchain data verifcation
      • Automated execution of votes
        • Tokenomics
        • Liquidity Direction
        • Setting APYs on farms
      • Cross chain execution of votes
      • Manually submitting vote results onchain
    • ↔️Alluo Exchange
      • Interacting with the Exchange
    • vlAlluo Architecture
    • Contracts upgrades
    • Investment strategies
      • 📈Frax Convex Finance
        • Adding new pools into the strategy
        • Investing into a pool
  • More Advanced Features
    • 🔁 Repeat payments, streaming IbAlluo
  • Product Updates
    • 👌 Product Roadmap: Building the right products
    • 💻 Web App releases
    • 📱 Mobile App releases
    • 🏎️ Alluo Boost
  • tutorial projects
    • Example: USDC to streaming 1 IbAlluo per second
    • Example: Using IbAlluoUSD and Ricochet to do capital efficient DCA into ETH
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On this page
  • 🙌 Principles: Decentralised at the core
  • 👴 How does it traditionally work?
  • 🚀 How is Alluo improving on this?
  • ↔️ What’s Next?
  1. Decentralisation and Trust

🗳️ Trustless governance and execution

💡Read about our decentralised principles and how we’re living them here

PreviousManaging withdrawal requests in IERC4626NextTech deep dive: Vote Executor Architecture

Last updated 2 years ago

🙌 Principles: Decentralised at the core

Users should ALWAYS be in control of their funds and their keys. Organisations should NEVER be able to block deposits/withdrawals unless it was via a democratic, decentralised and transparent process. Above all, users should be able to trust and verify the management and execution of a vote agreed on by the community. This is the only way a customer can fully trust an Organisation.

It is also the only way we will be able to argue with regulators and governing bodies that DeFi is an improvement over CeFi/TradFi.

👴 How does it traditionally work?

In a traditional organisation, the governance can sometimes be somewhat democratic (shareholder resolutions, public market share price, etc.). Once a decision is taken and the execution phase starts, a paper trail has to be created to document the execution and prove to a regulator or auditor with some degree of certainty that the execution took place.

Most big DeFi projects have improved on this by adopting on-chain or semi-on-chain voting tools like (, , ), but very few have gone the extra step and automated the execution of these votes in a trustless and decentralised manner.

In DeFi today, once a decision is taken via a governance vote, it is most often manually actioned by a single signer or, at best, by a multisig (e.g. Gnosis where at least x out of n signers have to agree to a particular transaction).

Here is an example:

The proposal from Aave governance forum:

I was not able to find a transparent execution for it, it is therefore for the community to assume the execution is actually done, what if the Aave team is not able to implement it, what if there is a bad actor?

🚀 How is Alluo improving on this?

As always, we are committed to building trustlessly, which will allow us to reach a much wider market and truly make DeFi available for all.

We have decentralised our decision-making process by asking out community to vote with their $vlALLUO in our governance rounds () and now have created the ability for anyone in the community to trigger a vote and run the execution in a very simple and transparent way, even if none of the core team is available.

On Jul-15–2022 at 12:09:20, the Alluo core team created the first cross-chain vote execution using our automated decentralised system.

🥸

↔️ What’s Next?

Our next stop is to automate our Liquidity Direction vote. This is by far the most complicated vote to automate, it hits every difficulty box: Cross-chain, asset transfers, exposure to slippage and arbitrage, high incentive to steal funds “in transit” etc.

This is one of the most challenging projects our Core Blockchain team has taken on, but we are very excited to solve it, particularly in light of the recent disasters like Celsius, 3AC where it is the opacity of managing the funds that led to these companies’ demise.

We’re close to being complete and hope to push this next element towards the end of October 2022 🤞

Snapshot
Aave
Curve
Alluo
https://governance.aave.com/t/arc-risk-parameter-updates-2021-11-04/6072
https://vote.alluo.com
You can find out more about the details here