GEB Docs
  • Introduction to GEB
  • Community Resources
  • FLX Mechanics
  • FAQ
  • RAI
    • RAI Use-Cases
    • Multi-chain RAI
    • RAI Integrations
  • The Money God League
    • Intro to The League
  • Ungovernance
    • Governance Minimization Guide
  • Risk
    • GEB Risks
    • PID Failure Modes & Responses
  • Incentives
    • RAI Uniswap V2 Mint + LP Incentives Program
    • RAI Uniswap V3 Mint + LP Incentives Program (Inactive)
    • FLX Staking
    • RAI / ETH Uniswap V3 Oracle LP Incentives Program
  • Contract Variables Translation
    • Core Contracts Naming Transition
    • Governance Contracts Naming Transition
    • SAFE Management Contract Naming Transition
  • System Contracts
    • Core Module
      • SAFE Engine
      • Liquidation Engine
      • Accounting Engine
    • Auction Module
      • English Collateral Auction House
      • Fixed Discount Collateral Auction House
      • Increasing Discount Collateral Auction House
      • Debt Auction House
      • Surplus Auction House
    • Oracle Module
      • Oracle Relayer
      • Medianizer
        • DSValue
        • Governance Led Median
        • Chainlink Median
        • Uniswap V2 Median
      • FSM
        • Oracle Security Module
        • Dampened Security Module
        • FSM Governance Interface
    • Token Module
      • Token Adapters
      • System Coin
      • Protocol Token
      • Protocol Token Authority
      • Protocol Token Printing Permissions
    • Money Market Module
      • Tax Collector
    • Sustainability Module
      • Stability Fee Treasury
      • FSM Wrapper
      • Increasing Treasury Reimbursement
      • Mandatory Fixed Treasury Reimbursement
      • Increasing Reward Relayer
    • Automation Module
      • Collateral Auction Throttler
      • Single Spot Debt Ceiling Setter
      • ESM Threshold Setter
    • Governance Module
      • DSPause
    • Shutdown Module
      • Global Settlement
      • ESM
  • Proxy Infrastructure
    • DSProxy
    • Proxy Registry
  • Helper Contracts
    • SAFE Manager
  • GEB.js
    • Getting Started
    • Global Settlement Guide
    • API Reference
      • Geb
      • Safe
      • Proxy Actions
      • Geb Admin
  • APIs
    • API Endpoints
  • Pyflex
    • Getting Started
      • Configuration
      • GEB Basics
    • SAFE Management
      • Opening a SAFE
      • Closing a SAFE
    • Numerics
  • Keepers
    • Keeper Overview
    • Collateral Auction Keeper
      • Running in Docker
      • Running on a Host
      • Liquidations & Collateral Auctions
      • Collateral Auction Flash Swaps
    • Debt Auction Keeper
      • Running in Docker
      • Running on a Host
    • Staked Token Auction Keeper
      • Running in Docker
      • Running on a Host
    • Surplus Auction Keeper
      • Running in Docker
      • Running on a Host
    • Bidding Models
  • Liquidation Protection
    • SAFE Protection
    • Liquidation Protection Guide
    • Uni-V2 RAI/ETH Savior Details
    • Curve V1 Savior Details
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  • Smart Contract Bugs
  • Admin Keys
  • PID Controller
  • Suboptimal Parameters

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  1. Risk

GEB Risks

PreviousGovernance Minimization GuideNextPID Failure Modes & Responses

Last updated 3 years ago

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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 in the System Contracts section.

You can also check our original .

Smart Contract Bugs

The core GEB contracts were audited by . Other helper contracts were audited by .

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.

Admin Keys

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 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 .

PID Controller

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.

Suboptimal Parameters

Governance may set suboptimal parameters for:

  • Debt auctions which can lead to an excessive amount of protocol tokens being printed

  • Collateral auctions which may not give a good enough incentive for bidding

  • Global Settlement which may delay SAFE processing and collateral redemption indefinitely

NOTE: check out more PID failure modes in .

There are many more parameters which may be suboptimal. Check the for more details.

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