Protocol Governance

How the Tydro Protocol is maintained

Governance

Governance sets market parameters, lists new markets, and holds the powers needed to keep the protocol safe. Tydro uses the Aave V3 governance roles. This page maps the roles and what each one can do.

The governance body

Tydro's parameters, listings, and upgrades are managed by a Tydro governance body that operates through a multisig, with directors who review risk reports and approve listings. The body is made up of service providers, risk and security contributors, and other participants.

Roles

Tydro splits authority across scoped roles, so routine adjustments, emergency action, and structural changes are handled by the right party with the right limits.

Role	What it does	Scope
Risk Steward	Adjusts risk parameters within preset bounds	Fast, bounded changes such as caps and rate settings, without a full governance cycle. Live.
Guardian	Pauses a market or the protocol in an emergency	Protective only. Cannot move funds or change parameters. Live.
Governance	Lists markets, sets parameter ranges, controls upgrades	The broad authority behind the protocol.

Parameter bounds

The Risk Steward can only move parameters inside ranges governance has already approved.

Addresses

Role / contract	Address
Risk Steward contract	0xC1d38a1cdfb53Fce012A3A8CB42B64ddF60d4332
Guardian multisig	0x00C2B13eF4F70Bf1827179Fe6d8facF7cFf6AcD2
Risk Council	0xEcD37F855bB9814D75A83F0021815dc5cd6fd889

Key functions

• List a market: governance brings a new market live with its assets, parameters, and oracle configuration.
• Adjust risk parameters: the Risk Steward tightens or loosens settings like LTV, caps, and rate parameters within the bounds governance has set. In the launch market, the fixed borrow rate is one of those governance-held settings.
• Pause: the Guardian halts activity in a market or across the protocol if a threat appears, then resumes once it clears. See Smart contract security.
• Upgrade: governance applies improvements and fixes to the protocol's contracts.

Why mutable markets matter

Tydro markets are mutable, which means governance can adjust their parameters after launch with strict role based access and timelock controls. Immutable markets are fixed at deployment and cannot change, so when conditions shift, the only lever a user has is to exit.

Mutability enables active risk management. If volatility rises, the Risk Steward can lower LTV or tighten caps to protect existing positions. If a threat appears, the Guardian can pause the market in the same step. During May 2025 Tydro migrated oracles during a potential vulerability due to the data providers, this transition only possible due to Aave's market mutability

That control comes with a clear tradeoff. Mutable markets require trust that the parties holding these roles act responsibly, which is why every power is scoped, the Guardian can only pause, and the Risk Steward can only move parameters inside bounds governance has already approved. See Smart contract security.