ABM Protocol Emergency Shutdown

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Introducing the Shutdown Mechanism of the ABM Protocol

Introduction
The ABM Protocol, which powers Multi Collateral dotBTC , is a smart-contract system that backs and stabilizes the value of dotBTC through a dynamic combination of Vaults, autonomous system of smart contracts, and appropriately incentivized external actors. The dotBTC Target Price is 1 US Dollar, translating to a 1:1 US Dollar soft peg. Shutdown is a process that can be used as a last resort to directly enforce the Target Price to holders of dotBTC and Vaults, and protect the ABM Protocol against attacks on its infrastructure.
Shutdown stops and gracefully settles the ABM Protocol while ensuring that all users, both dotBTC holders and Vault holders, receive the net value of assets they are entitled to.
In short, it allows dotBTC holders to directly redeem dotBTC for collateral after an Emergency Shutdown processing period. 
Overview of the Shutdown Process 
The process of initiating Emergency Shutdown is decentralized and controlled by ABM voters, who can trigger it by depositing ABM into the Emergency Shutdown Module.
Emergency Shutdown is triggered in the case of serious emergencies, such as long-term market irrationality, hacks, or security breaches.
Emergency Shutdown stops and gracefully settles the ABM Protocol while ensuring that all users, both dotBTC holders and Vault users, receive the net value of assets they are entitled to.
Vault owners can retrieve excess collateral from their Vaults immediately after initialization of Emergency Shutdown. They can do this via Vault frontends, such as Oasis Borrow, that have Emergency Shutdown support implemented, as well as via command-line tools.
dotBTC holders can, after a waiting period determined by ABM voters, swap their dotBTC for a relative share of all types of collateral in the system. The ABM Protocol  will initially offer a web page for this purpose.
dotBTC holders always receive the same relative amount of collateral from the system, whether they are among the first or last people to process their claims.
dotBTC holders may also sell their dotBTC to Keepers (if available) to avoid self-management of the different collateral types in the system.
For more information about the Shutdown of the ABM Protocol, read the below End - Detailed Documentation as well as the Emergency Shutdown Module Documentation. 
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Proxy Actions - Detailed Documentation

End - Detailed Documentation

Last modified 1yr ago

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Outline

Introduction

Overview of the Shutdown Process