VIP XX: Volt Token Migration

Volt Improvement Proposals
1

Check out the pull request on Github, including review and audit log.

Motivation

Upgrade the VOLT token to support delegation and voting in preparation for the Veto Module. Granting VOLT holders the right to veto unwanted changes will be a key part of the checks and balances in Volt Protocol governance. This style of bicameral or dual-governance has been proposed previously by Gyroscope and in Lido DAO, but we hope to be the first to put it into practice.

VIP Contents

Swapping to a new VOLT token requires numerous other system changes to facilitate a smooth migration:

  • the new Volt token contract itself VoltV2
  • the migrator contract to swap old VOLT for new VOLT, the VoltMigrator
  • a migrator router that allow users who hold old Volt to redeem for stablecoins MigratorRouter
  • new DAI and USDC PSMs supporting newVOLT

Governance Actions in this VIP include:

  • Granting minter role to timelock
  • Minting entire old Volt total supply as new Volt to the VoltMigrator
  • Revoking the minter role from the timelock
  • Exchanging old Volt from old PSMs to new Volt and sending to new PSMs
  • Transferring USDC and DAI from old PSMs to new PSMs
  • Connecting new PSMs to ERC20Allocator and connecting deposits
  • Disconnecting old PSMs from ERC20Allocator
  • Whitelisting new PSMs on PCVGuardian
  • Unwhitelisting old PSMs on PCVGuardian
2

This is now expected to be our next VIP and also include a few other important system changes. More details to come including full audit report, posting this as a quick update as we are preparing for code freeze end of this week for audit starting November 28.