Stewardship

Polaris uses bounded stewardship instead of open-ended governance.

Governance can become a source of risk when it is capable of changing how a protocol operates or how value flows through the system after deployment. Users are then required to evaluate not only the protocol itself, but also the character and decision-making processes of those responsible for governing it.

Polaris is designed to minimize that reliance by enforcing as much of the protocol logic as possible through immutable smart contracts. Where that is not possible, economic incentives encourage participants to act in ways that strengthen the system.

Stewardship is therefore bounded, and cannot:

• Introduce new collateral to back pAssets
• Modify the bonding curve
• Change the liquidation mechanisms that underpin the system

Steward Responsibilities

Some parts of the ecosystem still require ongoing coordination.

Stewardship is responsible for certain parameters within predefined protocol boundaries, making sure the ecosystem adapts to changing market conditions.

This includes:

• Interest rate splits
• POLAR conversion parameters
• Replacing faulty oracle feeds
• Whitelisting or removing flow recipients
• Adjusting flow weightings

These decisions influence how value moves throughout the Polaris ecosystem without giving stewards the ability to modify the core protocol architecture.