CompliFi aims to implement a decentralised governance mechanism that will serve as a solid foundation for long term growth and development of the protocol.
COMFI token is intended as the key instrument in this mechanism, one that will hold the authority over CompliFi’s strategic direction and its decentralised treasury, as well as have a claim on the revenue generated by the protocol.
COMFI is the governance token of CompliFi protocol.
Total supply: 10,000,000 tokens
Token contract: 0x752efadc0a7e05ad1bcccda22c141d01a75ef1e4
The protocol can potentially generate revenue by charging a Protocol Fee, implemented as a % of collateral supplied by users in order to mint derivatives. Additional fee mechanisms may be added in the future.
Protocol Fee mechanism has been implemented, but the fee level is currently set to zero.
From the outset, CompliFi has been designed in such a way as to minimise the scope of governance in operational matters. In particular, any user can unilaterally create a new derivative specification, add a new collateral type or a new oracle, create a new derivative vault and an AMM pool. In other words, no government permission is required to run a third party issuance and trading operation based on CompliFi.
In no circumstances does CompliFi governance have access to user funds.
CompliFi governance has authority over the following key actions:
Governance can temporarily pause the ability swap assets with a CompliFi AMM pool (ability to remove liquidity is unaffected). This is designed to mitigate potential economic damage to liquidity providers in case of unforeseen pool behaviour.
Governance can temporarily pause settlement of a CompliFi vault. This feature focuses primarily on addressing external oracle malfunctions where their price data does not adequately reflect the state of the market.
Set the Protocol Fee level applied to collateral used to mint derivatives.