Hifi Finance is a decentralized protocol governed and upgraded by its community through the use of three key components: the HIFI token, the governance module (Governor Bravo), and the Timelock. These elements work cohesively to allow the community to propose, vote on, and implement changes to the protocol, whether it involves adjusting system parameters, supporting new collateral types, or introducing entirely new features.
HIFI token holders can delegate their voting rights to themselves or to an address of their choice. To create a governance proposal, an address must be delegated a minimum of 2,825 HIFI tokens.
When a governance proposal is initiated, it enters a review period of up to one week. After this period, voting weights are recorded, and the voting phase begins, lasting for three days. For a proposal to be approved, it must receive both a majority vote and at least 2% of the HIFI token supply cast in its favor. Once approved, the proposal is queued in the Timelock and can be executed after a two-day waiting period. As a result, any changes to the protocol require a minimum of five days to be implemented.
This documentation aims to offer detailed guidance on Hifi Finance governance contracts, encouraging community participation and fostering transparency in the decision-making process.