POOLED INSURANCE
FeePool Contract (OP): 0xf9FE3607e6d19D8dC690DD976061a91D4A0db30B
A pooled insurance VCM is executed in the FeePool contract using a few inherited patterns of the VestingEntries library with EternalStorage state management. This core implementation implements Risk Exposure (7) as collateralization ratio verification (i.e., getPenaltyThresholdRatio()) and Future Cashflow (22) via feePeriod rotation mechanics.
The technical patterns demonstrate VCM inheritance through the following:
- FeePeriod struct architecture managing epoch-based distribution
- EternalStorage delegation for persistent state
- Cross-chain debt share synchronization via external aggregators
- Reward escrow integration using VestingEntries for fee claims
- Proxyable pattern enabling upgradeable mechanisms
The contract uses SafeDecimalMath to ensure accurate fee calculations and implements ISynthetixDebtShare for cross-chain consistency. closeCurrentFeePeriod() is a prime example of the VCM pattern in use, doing risk exposure state (allNetworksSnxBackedDebt) management with reward distribution (_recordRewardPayment).
The following implementation provides concrete examples of how VCM properties are realized on data structures while maintaining upgradeability via proxy delegation patterns.
Liquidator Contract (OP): 0xB589Af3f2e3377A9a57da74bE1b6598926479505
The Liquidator contract implements a pooled insurance VCM involving the Risk Exposure (7) aspect following an inheritance pattern of MixinSystemSettings and ILiquidator interface. The core implementation is reflected in:
- Data structure for Liquidation Entry flagging/deadline mechanics
- C-ratio threshold verification with SafeDecimalMath for accuracy
- Multi-phase liquidation process:
- Flag account
- Enforce delay period
- Compute liquidation parameters (debt and collateral)
- Liquidate via Issuer
- Important technical patterns that can be observed include:
- Flexible delegation of storage for persistent state
- Cross-contract permission through the onlyIssuer modifier
- Liquidation accounting using SafeMath arithmetic The contract illustrates abstract VCM composition in which Risk Exposure specifies the eligibility and describes the sequential liquidation process, showcasing how complex risk management patterns emerge from atomic OoVs.
GENERALIZED GOVERNANCE
The Synthetix governance system is a generalized governance VCM that combines Risk Exposure (7), Conditional Action (8), and Governance (3) via an elaborate DAO hierarchy. Fundamentally, the system employs staked collateral as a form of weighted voting power, so governance rights are directly correlated to economic exposure. This Risk Exposure component ensures voters are materially invested in the protocol's success and assume collateral liquidation risk.
The governance process is a sequence of conditional actions organized in a pipeline from SIP/SCCP submission through council review and eventual implementation. Stakers elect the Spartan Council, the main deliberative body and the Protocol DAO executes approved changes via multisig architecture. This separation of powers model creates distinct stages of proposal evaluation and implementation, each gatekept by different conditions and thresholds.
This multi-DAO structure facilitates multi-layered governance function segmentation across focused areas of expertise — protocol governance, contract upgrade initiation, treasury governance, ecosystem coordination, and grant funding. While each DAO is built with unique permissions, the DAOs are integrated with the overarching governance layer. The multisig implementation of the pDAO is particularly illustrative of how these abstract governance mechanisms play out as concrete smart contract patterns, where ownership controls and signature requirements enforce the generalized governance VCM's rules.