Ambient Docs
  • Introduction to Ambient
  • Concepts
    • AMMs
    • Concentrated Liquidity
    • Knockout Liquidity
    • Governance & Policy
    • Surplus Collateral
    • Permissioned Pools
    • Account Abstraction
  • Users
    • Swaps
    • LP Positions
    • Surplus Collateral
    • Dynamic Fees
    • Knockout Positions
    • Initializing Pools
    • Gasless Transactions
    • External Routers
  • Governance & Policy
    • Ops & Treasury Multisigs
    • Policy
    • Upgrading Code
    • Emergency
  • Developers
    • Deployed Contracts
    • Token Transfers
    • Type Conventions
    • DEX Contract Interface
      • userCmd Callpaths
      • Swaps
        • Hot Path Swap Migration
          • Directly Calling CrocSwapDex
          • External Swap Router
      • Flat LP Calls
      • Long Form Orders
      • Knockout LP Calls
      • Pool Initialization
      • Surplus Collateral
      • Router Calls
      • Relayer Calls
    • Query Contracts
      • CrocQuery Contract
      • CrocImpact Contract
    • Logs and Queries
    • Libraries and APIs
      • SDK
      • Indexer API
      • Subgraph
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  1. Concepts

Governance & Policy

PreviousKnockout LiquidityNextSurplus Collateral

Last updated 1 year ago

Ambient protocol uses a three-layer division of responsibility:

Governance fills the traditional role of a DAO. It includes full power over the protocol, and is controlled by M-of-N multisigs and timelock resolutions.

Policy is an intermediate layer that sits between the DAO governance and the DEX contract itself. It can ether directly relay resolutions from the governance layer, or delegate limited administrative control of the DEX to external smart contract policy oracles explicitly installed by DAO governance.

Mechanism is the underlying DEX contract itself. CrocSwapDex (the core smart contract holding dex liquidity and positions) is built with tunable parameters that can be dynamically adjusted by external policy oracles. That allows the protocol to improve and experiment with new functionality in a way that's safer and more contained than directly upgrading the underlying DEX smart contract.