Using a GEB deployment and/or its associated stable asset doesn't come without risk. Before you decide to deposit your assets in the protocol or acquire the stable asset, you should do your research and understand the risks involved.
This section will only give an overview of the main risks associated with GEB. If you'd like to dive deeper, you can check out every module in the System Contracts section.
However, security audits do not completely eliminate smart contract risk. We urge you not to put your life savings or money you can't afford to lose into any GEB deployment or its associated stable asset.
The very first GEB deployment will need to be fully managed in its initial stages because of the risks tied to the PID controller managing the system as well as the need for more infrastructure to be built so the protocol can be automated.
Subsequent GEB deployments may or may not be governed, depending on whether the community will want to add more collateral types as time goes by.
While a GEB is fully managed/governed, almost all of its components can be upgraded and manually set up. Once it's governance minimized, only a few components can be upgraded and fewer parameters can be changed.
You can take a look at the Governance Minimization Guide to see what will need to be done so that a GEB can be governance minimized. Stay alert for more updates from the Reflexer team regarding a timeline for RAI governance minimization.
Until most of the RAI protocol is governance minimized, the protocol is managed by this multisig.
PID control is still a novel concept in DeFi. No other stable asset prior to RAI has been managed by an on-chain controller and there is no historical data that can help with the controller's modelling and simulations.
If the controller is too slow it may be completely ineffective in stabilizing RAI or other stablecoins. If it's too strong, it may destabilize the system.