PIP-XX: Restructuring Paladin - Winding down Warlord

Paladin Improvement Protocol (PIP)
1

TL;DR:
Terminating operations on Warlord protocol, as part of Paladin greater restructuring into Trevee.

Background:

Warlord was launched in early 2023 as the first auto voting and compounding mechanism for liquid lockers, initially supporting CVX & AURA deposits as Curve and Balancer were prominent meta governance protocols at this time, with plans to onboard more assets as the ecosystem evolved.

Despite efforts to promote and bootstrap the protocol, and despite sustaining 50%+ APR for about 2 years of bear market, Warlord never scaled over 7 figures TVL with punctual pumps being often a result of underlying assets’ price action.

The principal flaw of Warlord design being the weight rebalancing between deposit assets, overtime AURA permanent downtrend created a big divergence with CVX performance and thus impermanent loss for users when withdrawing from Warlord.

In anticipation of Paladin DAO rebranding and restructuring and considering all factors playing against its future expansion, we believe winding down Warlord is a necessary step to move forward to a simplified protocol suite under the Trevee umbrella.

Rationale:

At the time of writing, there is $407k TVL in the protocol, composed of 82k CVX and 630k Aura.

Following the approval of this proposal, Warlord will stop the perma-lock mechanism and fully unlock Warlord TVL from both Convex and Aura vote locker contracts, over 4 months (16 weeks) period, during which final withdrawals will still be processed via the exit queue.

The last epoch reward distribution will occur as the proposal is accepted, after which no more yield will be distributed to the remaining TVL in the Warlord contract.

Next steps:

  • Activate “paused” mode on the Lockers: this will block mints/deposits, processUnlock operations (to prevent relocking), as well as reward harvesting (essentially all farming activities via delegation will be suspended), but this enables the migrate function => allowing this method to be called every 1 to 2 weeks to transfer unlocked CVX/AURA outside the contract (to a new contract that will serve for the redemption process)
  • Maintain the Redeem module, but develop and deploy a smart contract that will receive CVX & AURA from the Lockers, with the responsibility of forwarding to the Redeemer to fulfill the queue for users requesting withdrawals. Additionally, modify the redeemFee to reduce slashing penalties during redemption (cannot be set to 0, but setting it to 1 wei should work), and update the feeReceiver
  • Replace the Controller with a new version that does not attempt to compound CVX/AURA into WAR or other assets, remaining passive during the 16-week unlock period, and once everything has been withdrawn, unpause the Lockers to claim all remaining rewards, then pause again and subsequently shut them down permanently.
  • Yes
  • No
  • Abstain
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