Relevant smart contracts:

• ​CollateralAuctionThrottler​

• ​SingleSpotDebtCeilingSetter​

• ​ESMThresholdSetter​

1. Overview

The Automation Module is a set of contracts that automate parameter setting in a GEB deployment. They are meant to ease the burden of managing a system and allow the community to focus their efforts on other areas.

2. Component Descriptions

• CollateralAuctionThrottler - this contract bounds the amount of bad debt that's waiting to be covered by collateral auctions at any given time

• SingleSpotDebtCeilingSetter - this contract recomputes the debt ceiling for a specific collateral type by looking at the current globalDebt in the SAFEEngine

• ESMThresholdSSetter - this contract recomputes the threshold needed to burn and trigger settlement using the ESM

3. Risks

Smart Contract Bugs

• A bug in the CollateralAuctionThrottler could prevent the LiquidationEngine from liquidating any SAFE by setting onAuctionSystemCoinLimit to an extremely low value

• A bug in the SingleSpotDebtCeilingSetter could set an extremely low ceiling or it could block any further ceiling updates and thus not allow the system to issue more system coins

• A bug in the ESMThresholdSetter could set the ESM threshold to an extremely low value which would make shutdown extremely easy to execute or to a very high value which would make shutdown almost impossible to execute

Misconfiguration

• Governance can misconfigure the throttler and make it compute extremely low values for theonAuctionSystemCoinLimit

• Governance can also misconfigure the SingleSpotDebtCeilingSetter to the point where it stops calculating new ceilings (by setting a large delay between recalculations) or it can calculate large or low ceilings (compared to the current amount of debt in the system)

• ESMThresholdSetter can be misconfigured and it can set extremely high or extremely low thresholds in the ESM

4. Governance Minimization

All the automation contracts are part of Level 2 governance minimization.

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