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Added 1IP-08 and 1IP-09.

Added 1RC language.

Fixed typos.
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RoundElephant authored Jul 23, 2022
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134 changes: 134 additions & 0 deletions docs/governance/1IPs.mdx
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Expand Up @@ -17,6 +17,140 @@ All 1IPs that have successfully passed the Phase-4 vote. These 1IPs have already
<details>
<summary>

### [1IP-09] Collect 1inch DAO Treasury Revenue in 1INCH Token in Addition to USDC

</summary>
<div>

<u>

- **[Phase-3: Temperature Check](https://gov.1inch.io/t/1ip-09-collect-1inch-dao-treasury-revenue-in-1inch-token-in-addition-to-usdc/3292)**

- **[Phase-4: Snapshot Vote](https://snapshot.org/#/1inch.eth/proposal/0xf232c7f50925954d32f2def1d64d31905346dd96a0fc8bcb6f029d29d0e6208e)**

</u>

</div>

<details>
<summary>

**Full Proposal Description**

</summary>

<div><div class="sc-gFCZzz gYcqAq"><h2>Simple Summary</h2>
<p>This proposal seeks to modify the 1inch Network DAO Treasury’s revenue collection strategy by enacting the following changes:</p>
<ul>
<li>Switch from buying USDC with Swap Surplus revenue to buying 1INCH when the price is lower than $1.30.</li>
<li>Switch from buying 1INCH with Swap Surplus revenue to buying USDC the price of 1INCH is greater than or equal to $1.70.</li>
</ul>
<h2>Abstract</h2>
<p>Currently, the Swap Surplus <a href="https://docs.1inch.io/docs/governance/dao-treasury#revenue-stream" target="_blank">revenue stream</a> is collected in varying tokens and swapped to <a href="https://etherscan.io/token/0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48" target="_blank">USDC</a> before it is then sent to the 1inch DAO <a href="https://gnosis-safe.io/app/eth:0x7951c7ef839e26F63DA87a42C9a87986507f1c07/transactions/history" target="_blank">Treasury</a>. Once enacted, this proposal will instead swap these tokens to <a href="https://etherscan.io/token/0x111111111117dc0aa78b770fa6a738034120c302" target="_blank">1INCH</a> as long as the market price of 1INCH is below the $1.30 to $1.70 range (see the Specification section for a detailed explanation). All swaps will be done using the <a href="https://docs.1inch.io/docs/aggregation-protocol/introduction" target="_blank">1inch Aggregation Protocol</a> to ensure the best pricing.</p>
<h2>Motivation</h2>
<p>Benefits to the 1inch Network DAO include:</p>
<ul>
<li>Investing the DAO’s revenue stream into the protocol’s governance token while the governance token is lower than it was previously valued.</li>
<li>Potential upward pressure on the 1INCH token as the DAO Treasury will be a net buyer of cheap 1INCH.</li>
<li>When the token is trading at higher valuations, the Treasury will automatically de-risk by collecting revenue in stable coins.</li>
<li>Holding 1INCH within the 1inch DAO Treasury will allow the Treasury to scale its value with the performance of the token.</li>
</ul>
<h2>Specification</h2>
<p>This proposal serves as a signal from the 1inch Network DAO to 1inch Labs. Once passed, the 1inch Network DAO calls for 1inch Labs to modify the fee collection strategy with the following changes:</p>
<ul>
<li>When the price of 1INCH moves is below $1.30, Swap Surplus revenue shall start to be collected in 1INCH.</li>
<li>When the price of 1INCH moves above $1.70, Swap Surplus revenue shall be collected in USDC.</li>
</ul>
<p>Once the modifications have been made and tested, 1inch Labs shall deploy them. All future modifications to these will need to be done by a 1inch DAO Governance vote.</p>
<h2>Rationale</h2>
<p>This proposal aims to purchase 1INCH with treasury revenue when the price is lower than ~$1.50. $0.20 bands are used on either side of this buying point in order to dampen the impact that market volatility could have.</p>
<p>This price point of 1INCH that triggers the switch can be changed in the future via a governance vote.</p>
<h2>Considerations</h2>
<h3>Market Risk</h3>
<p>The USDC stablecoin composition of the 1inch DAO Treasury puts the Treasury in a very good position during any bearish market cycles — the Treasury constantly grows in dollar value while, in contrast, projects that primarily hold their own token, have had the real value of their Treasury shrink in the last 6 months.</p>
<p>Adding 1INCH to the Treasury composition will increase both the potential risk and potential returns. This proposal dampens the volatility by maintaining a mix of risk-on and risk-off assets.</p>
<h3>Added Complexity</h3>
<p>If enacted, this proposal will add complexity to the Treasury Revenue collection strategy.</p>
</div>
</div>

</details>

</details>

<details>
<summary>

### [1IP-08] Simple diversification mechanism for 1inch DAO Treasury

</summary>
<div>

<u>

- **[Phase-3: Temperature Check](https://gov.1inch.io/t/1ip-08-simple-diversification-mechanism-for-1inch-dao-treasury/3289)**

- **[Phase-4: Snapshot Vote](https://snapshot.org/#/1inch.eth/proposal/0xddcbeb800fb1ba01c4a4963ab25dc702245c97e10e5c6f74a36e1f5e18e2f97a)**

</u>

</div>

<details>
<summary>

**Full Proposal Description**

</summary>

<div><div class="sc-gFCZzz gYcqAq"><h2>Simple Summary</h2>
<p>This proposal seeks to diversify the 1inch Network DAO’s Treasury composition be enacting the following strategy:</p>
<ul>
<li>Do not exchange a whitelisted set of tokens for USDC before sending to the 1inch DAO Treasury.</li>
<li>These whitelisted tokens shall be: ETH, WETH, WBTC, DAI, and USDT.</li>
</ul>
<h2>Abstract</h2>
<p>Currently, all of the Swap Surplus revenue stream is collected in varying tokens and swapped to USDC before being sent to the 1inch DAO Treasury. To start the diversification process of the treasury funds, the protocol can keep some incoming Swap Surplus tokens as collected (not swapping them for USDC).</p>
<p>This proposal aims to whitelist the following tokens for this treasury collection strategy:</p>
<ul>
<li>ETH</li>
<li>WETH</li>
<li>WBTC</li>
<li>DAI</li>
<li>USDT</li>
</ul>
<h2>Motivation</h2>
<p>The 1inch DAO Treasury is 100% composed of USDC. USDC is a fiat-backed stablecoin pegged to USD managed by Circle.</p>
<p>USD experienced record inflation over the last 12 months, and will experience some degree of inflation for perpetuity. As such, the marginal spending power of the 1inch DAO Treasury is weakened unless the DAO deploys the funds in a manner that can outpace inflation.</p>
<p>These assets are viewed as risk-on diversification assets for the treasury:</p>
<ul>
<li>ETH – the native asset of the Ethereum blockchain</li>
<li>WETH – ETH wrapped in an ERC20 wrapper</li>
<li>WBTC – Bitcoin (BTC) is the oldest and largest digital asset. WBTC is Bitcoin wrapped in an ERC20 wrapper</li>
</ul>
<p>Stablecoins also have inherent risks such as smart contract risks and centralization risks. Diversifying the stable coin holdings of the 1inch DAO Treasury aims to hedge against these risks. These assets are viewed as risk-off assets for the treasury:</p>
<ul>
<li>DAI – the decentralized collateral-backed stablecoin issued by the Maker Protocol. DAI is soft-pegged to USD</li>
<li>USDT – the fiat-backed stablecoin pegged to USD and managed by Tether</li>
</ul>
<h2>Specification</h2>
<p>To implement this proposal, GovernanceLeftoverExchanger should transfer ETH, WETH, WBTC, DAI and USDT directly to the treasury the same way it transfers USDC. All other tokens should still be converted to USDC as they are now.</p>
<h2>Rationale</h2>
<p>The crypto market cap took a decline in recent months. With token valuations depressed, it may be a good time to start accumulating non-stable tokens to grow the treasury.</p>
<p>Since exchange transactions cost some Ether to pay for the gas fees, eliminating the swapping step for these whitelisted tokens will increase the capital efficiency of this operation. It is also for this reason that large stable coins such as DAI and USDT, should be sent directly to the treasury.</p>
<h2>Considerations</h2>
<p>The current stablecoin composition of the 1inch DAO Treasury ensures that the Treasury is insulated from bearish market cycles. However, this also means the treasury’s funds have no way to keep pace with the rise in inflation. Adding ETH, WETH and WBTC increase both the risk and the potential rewards.</p>
<p>This proposal does not call for any actions to be taken with the funds currently held by the 1inch DAO Treasury.</p>
</div>
</div>

</details>

</details>

<details>
<summary>

### [1IP-07] Integrate Balancer Boosted Pools in the 1inch Aggregation Protocol

</summary>
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5 changes: 4 additions & 1 deletion docs/governance/Glossary.mdx
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Expand Up @@ -9,7 +9,10 @@ An ERC-20 token that is used to participate in the 1inch DAO governance process.
* **v1INCH:** An ERC-20 which represents 1INCH tokens that are currently locked in the vesting contract. These tokens are not yet fully-vested and have reduced voting weight (20%) compared to st1INCH.

### 1IP
1inch Improvement Proposal, 1IP, is the formalization of a proposal.
1inch Improvement Proposal, 1IP, is the title given to proposals that have reached the Phase 4 Snapshot vote.

### 1RC
1inch Request for Comment, 1RC, is the title given to formalized proposals.

### DAO
A decentralized autonomous organization.
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2 changes: 1 addition & 1 deletion docs/governance/improvement-proposal-template.mdx
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Expand Up @@ -6,7 +6,7 @@ sidebar_position: 6
## Title
Title should reflect the content of the 1IP.

For the forum post, prefix “[1IP-#]” to the title (replace # with the lowest available proposal number) and set the tag on the post to Phase-2.
For the forum post, prefix “[1RC]” to the title and set the tag on the post to `phase-2`. Proposals will be assigned an 1IP-# at the time of Phase 4 Snapshot creation.

## Simple Summary
A brief, high-level summary of what changes are being suggested. Summary should be a single sentence, or a bulleted list.
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22 changes: 16 additions & 6 deletions docs/governance/proposal-lifecycle.mdx
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Expand Up @@ -7,6 +7,8 @@ The 1inch Network DAO governance process takes place in the governance forum at
## Phase 1: Discussion
The purpose of this phase is to vet ideas with the broader 1inch community. Each unique idea should have its own thread so that the conversation can stay on topic, it should be as narrowly focused as possible. Anyone can participate in this phase of governance, and it occurs entirely off-chain. The goal of Phase 1 discussion is to gain a rough community consensus, and refine the idea so that it can be formalized. The thread author should make an effort to address all comments and take them into consideration.

**Forum tag:** `phase-1`

**Duration:** Open-Ended

## Phase 2: 1IP Formalization
Expand All @@ -19,32 +21,38 @@ Phase 2 is where the idea is formalized into an 1IP that includes all of the cri
* **Considerations**


The forum is the formal arena to debate the merits of each 1IP. Once the 1IP has been drafted, the author must post it on the 1inch governance forum and use the tag: Phase-2.
The forum is the formal arena to debate the merits of each 1IP. Once the 1IP has been drafted, the author must post it on the 1inch governance forum and use the tag: `phase-2`.

While the 1IP is in a draft state, the 1IP author is free to make modifications to the proposal based on feedback from the community's review.

To preserve the number sequencing of 1IPs, proposals should use the 1RC (1inch Request for Comment) prefix for both Phase 2 and Phase 3. The 1IP number will be assigned once the proposal enters the Phase-4 Snapshot vote.

**Forum tag:** `phase-2`

**Duration**: Open-Ended

## Phase 3: 1IP Temperature Check

At any point during Phase-2, the author may finalize the 1IP by initiating a community temperature check. To do this, the author must change the tag of the forum post to Phase-3, and add a forum poll to gauge the community’s sentiment.
At any point during Phase 2, the author may finalize the 1IP by initiating a community temperature check. To do this, the author must change the tag of the forum post to `phase-3`, and add a forum poll to gauge the community’s sentiment.

1IPs should only be progressed to Phase 3 once the author has considered all community comments and believes the 1IP is prepared for incorporation.
Phase-3 represents the final proposal. Other than correcting errata, 1IPs in Phase 3 may not be edited.
Phase 3 represents the final proposal. Other than correcting errata, 1IPs in Phase 3 may not be edited.

The poll must be open for 5 days and only have the following options:
* (Yes) In favor of this proposal.
* (No) Against this proposal.

Note: This process is irreversible, i.e., an author may not revert an 1IP back to Stage-2 if it fails the temperature check vote.
Only successful Phase 3 proposals may progress to Phase 4. In order for a Phase 3 vote to be considered successful a majority of the temperature check votes cast must be in favor. There is no minimum quorum required for this phase.

**Forum tag:** `phase-3`

**Duration:** Exactly 5 days

## Phase 4: Snapshot Vote

All 1IPs are confirmed, or rejected, by the 1inch Network DAO via an off-chain [Snapshot](https://snapshot.org/#/1inch.eth) vote. The Snapshot vote must link to the results of the successful Phase-3 forum poll and include the full text of the finalized 1IP. Anyone can initiate the Snapshot vote as long as all requirements of Phase-3 were met (it does not have to be the 1IP author).
All 1IPs are confirmed, or rejected, by the 1inch Network DAO via an off-chain [Snapshot](https://snapshot.org/#/1inch.eth) vote. The Snapshot vote must link to the results of the successful Phase-3 forum poll and include the full text of the finalized 1IP. Anyone can initiate the Snapshot vote as long as all requirements of Phase-3 were met (it does not have to be the 1IP author). Once the Snaphsot vote has been created, the forum tag should be changed to `phase-4` and the title of the post should have the next 1IP-# added as the prefix.

The Snapshot voting period must last exactly seven days. During this period, addresses with voting power may vote for or against the proposal using the same two voting options as the Phase-2 poll:
The Snapshot voting period must last exactly seven days. During this period, addresses with voting power may vote for or against the proposal using the same two voting options as the Phase 3 poll:
* (Yes) In favor of this proposal.
* (No) Against this proposal.

Expand All @@ -56,6 +64,8 @@ In order for a vote to be considered successful, both of the following must be m

See [Voting Process](./voting-process.mdx) for a detailed description of how Voting Weight is calculated and how Vote Delegation works.

**Forum tag:** `phase-4`

**Duration:** Exactly 7 days

## Phase 5: Implementation
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11 changes: 11 additions & 0 deletions docs/limit-order-protocol/smart-contract/LimitOrderProtocol.md
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# LimitOrderProtocol


1inch Limit Order Protocol v2



## Derives
- [OrderRFQMixin](OrderRFQMixin.md)
- [OrderMixin](OrderMixin.md)
- [Permitable](libraries/Permitable.md)
- [PredicateHelper](helpers/PredicateHelper.md)
- [NonceManager](helpers/NonceManager.md)
- [ChainlinkCalculator](helpers/ChainlinkCalculator.md)
- [AmountCalculator](helpers/AmountCalculator.md)
- [EIP712](https://docs.openzeppelin.com/contracts/3.x/api/utils/cryptography#draft-EIP712)

## Functions
### DOMAIN_SEPARATOR
```solidity
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26 changes: 26 additions & 0 deletions docs/limit-order-protocol/smart-contract/LimitOrderProtocolPro.md
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# LimitOrderProtocolPro


1inch Pro Limit Order Protocol



## Derives
- [OrderMixin](OrderMixin.md)
- [Permitable](libraries/Permitable.md)
- [PredicateHelper](helpers/PredicateHelper.md)
- [NonceManager](helpers/NonceManager.md)
- [ChainlinkCalculator](helpers/ChainlinkCalculator.md)
- [AmountCalculator](helpers/AmountCalculator.md)
- [EIP712](https://docs.openzeppelin.com/contracts/3.x/api/utils/cryptography#draft-EIP712)

## Functions
### DOMAIN_SEPARATOR
```solidity
function DOMAIN_SEPARATOR(
) external returns (bytes32)
```




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