The governance model will be based on the instant governance model, which implies that changes to protocol parameters will take effect almost instantly rather than having to wait for lengthy voting periods, which is in line with our general focus on responsiveness and celerity in all processes. This will allow token holders to decide on the fine-tuned profitability model for each token’s vault based on market evolutions, providing a dynamic goldilocks level that makes the vault profitable at all times for both liquidity providers and arbitrageurs.

This governance structure is made possible by the following DAO-like voting procedure - each governance token holder can stake their tokens to vote and the weight of each user’s vote is proportional to the total number of tokens staked. On a daily basis, the results of the weighted votes are tallied and applied.

The holders of the governance token will vote on at least one of the following parameters:

  • How many token vaults will be allowed for yield farming

  • What are the tokens accepted for yield farming

  • The flash loan fees for each individual token vault

  • What is the maximum accepted liquidity in each Token Vault

  • What is the split for the fees obtained from offering the flash loans

  • How to spend the funds from the Equalizer Treasury

  • Pause the flash loan for a specific token vault (default none)

  • Different decisions for the evolution of the platform

As a community-driven project, Equalizer aims to bring added value to the entire DeFi space by becoming the first Flash Loans Market Maker.