Covenant

These parameters are set in the Aragon Agreement app

The covenant parameters are set in the Agreement app: an Aragon app used to define and enforce subjective rules that cannot be easily encoded in smart contracts.

The parameters (together with the 1hive defaults) are:

"agreementTitle": "1Hive Community Covenant",
"agreementContent": "ipfs:QmfWppqC55Xc7PU48vei2XvVAuH76z2rNFF7JMUhjVM5xV",
"settlementPeriod": 3,
"actionAmount": 0.1,
"challengeAmount": 0.1,
"actionAmountStable": 100,
"challengeAmountStable": 100,

Where:

agreementTitle is the title of the Community Covenant

agreementContent is the IPFS hash of the Community Covenant

settlementPeriod is the interval of time that starts when an action is challenged and lasts until it’s either resolved between the parties (submitter and challenger) or escalated to Celeste.

proposalDeposit is the initial amount of the token a community member needs to stake in order to perform an action (for example, to create a proposal). In 1hive's case it's 0.1 HNY, hence the 0.1 value given above.

challengeDeposit is the initial amount of the token a community member needs to stake in order to challenge an action (for example, to challenge a proposal). In 1hive's case it's 0.1 HNY, hence the 0.1 value given above.

proposalDepositStable is the amount of the token in USD terms that a community member needs to stake in order to perform an action. This value is used to update proposalDeposit.

challengeDepositStable is the amount of the token in USD terms that a community member needs to stake in order to challenge an action. This value is used to update challengeDeposit.

Recommendations

We recommend using symmetrical values for both the action and challenge amounts. This ensures it is just as easy to create a proposal as it is to challenge one.

Defining a stable (USD) action and challenge amount brings with it important UX and security considerations. From a security point of view, it means the Garden relies on a price oracle (an extra attack surface). From a UX point of view, community members need to ensure the value is kept up to date - this requires regularly executing a transaction to update the action and challenge amounts.

On the other hand, without a stable action and challenge amount, you may find you have to update proposalDeposit and challengeDeposit using a decision vote at some point - this is more costly and can take many days to pass.

As such, we recommend thinking hard about whether it makes sense for you to launch with or without defining proposalDepositStable and challengeDepositStable.

A note on the price oracle

Honeyswap inherits Uniswap's price accumulator. This means it uses a price accumulator for each pair which it stores once every 3 hours. The price the oracle gives is the average of these over the previous 24 hours. If the oracle misses being called in a 3 hour period you have to wait another 24 hours of it being called consistently every 3 hours for it to return a price. In sum, the attack vector to be aware of is your Honeyswap GDN/XDAI pair being manipulated consistently for at least 24 hours.