# \[Proposal\] Restrict slashing of stkTRU to owner role

**URL:** <https://forum.truefi.io/t/proposal-restrict-slashing-of-stktru-to-owner-role/1445>\
**Category:** Proposals\
**Created:** [July 11, 2023, 10:09pm UTC](https://forum.truefi.io/t/proposal-restrict-slashing-of-stktru-to-owner-role/1445 "2023-07-11T22:09:36Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![tylerw](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.truefi.io/tylerw/32/757_2.png) [@tylerw](https://forum.truefi.io/u/tylerw)\
**Post date:** [July 11, 2023, 10:09pm UTC](https://forum.truefi.io/t/proposal-restrict-slashing-of-stktru-to-owner-role/1445/1 "2023-07-11T22:09:36Z")

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## Summary

This proposal would upgrade the SAFU contract at [0x1eA63189eB1F4c109B10Cf6567f328C826AA6151](https://etherscan.io/address/0x1eA63189eB1F4c109B10Cf6567f328C826AA6151) so that liquidation can only be called by the owner role, which is currently set to [multisig 0x16c](https://etherscan.io/address/0x16cEa306506c387713C70b9C1205fd5aC997E78E) and could be passed to DAO governance or another party in the future.

## Background & Rationale

As is, any address is able to liquidate a loan held by the TrueFi DAO Pools that has defaulted. This liquidation triggers a slashing of up to 10% of stkTRU.

The only active loan held in the TrueFi DAO pools is the [delt.ai loan](https://etherscan.io/address/0xCcdAe6aa60Eb981A45881cdFdA8763f7783c9e53) in the tfUSDC pool. As described in [Delt.ai Loan due July 8, 2023 : Restructuring Update](https://forum.truefi.io/t/delt-ai-loan-due-july-8-2023-restructuring-update/1444), TrueTrading has reached a restructuring agreement with delt.ai where 20% of the outstanding principal will be repaid this month and maturity on the remaining will be extended.

TrueTrading plans to airdrop partial interest and principal payments over time, directly to lenders of the tfUSDC pool. Since this airdrop mechanism will operate independently in the tfUSDC pool, it is anticipated that even if lenders are made whole, the on-chain TrueTrading loan at [0xCcdAe6aa60Eb981A45881cdFdA8763f7783c9e53](https://etherscan.io/address/0xCcdAe6aa60Eb981A45881cdFdA8763f7783c9e53) will not be repaid in full.

This proposal aims to prevent unfair slashing of stkTRU holders in such a case, by restricting SAFU slashing to the owner of the SAFU contract.

## Future considerations

Ownership of the SAFU contract could be passed to DAO governance and revoked from [multisig 0x16c](https://etherscan.io/address/0x16cEa306506c387713C70b9C1205fd5aC997E78E) as a next step. An on-chain vote through Tally would be needed to complete changing of the owner role.

## Vote

[https://snapshot.org/#/truefigov.eth/proposal/0xb69994149cece7fb6a3fdac2835961829942da2393ed1b20cb4f5b5696b114dc](https://snapshot.org/#/truefigov.eth/proposal/0xb69994149cece7fb6a3fdac2835961829942da2393ed1b20cb4f5b5696b114dc)

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<div class="post-metadata">

**Author:** ![kaimi](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.truefi.io/kaimi/32/384_2.png) [@kaimi](https://forum.truefi.io/u/kaimi)\
**Post date:** [July 17, 2023, 8:30am UTC](https://forum.truefi.io/t/proposal-restrict-slashing-of-stktru-to-owner-role/1445/2 "2023-07-17T08:30:11Z")

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I am in favor of this proposal. It protects TrueFi from unjust slashing.

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**Author:** ![tylerw](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.truefi.io/tylerw/32/757_2.png) [@tylerw](https://forum.truefi.io/u/tylerw)\
**Post date:** [July 17, 2023, 8:26pm UTC](https://forum.truefi.io/t/proposal-restrict-slashing-of-stktru-to-owner-role/1445/3 "2023-07-17T20:26:57Z")

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Snapshot is now live

Please vote → [Snapshot](https://snapshot.org/#/truefigov.eth/proposal/0xb69994149cece7fb6a3fdac2835961829942da2393ed1b20cb4f5b5696b114dc) 🗳

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**Author:** ![TylerEther](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.truefi.io/tylerether/32/484_2.png) [@TylerEther](https://forum.truefi.io/u/TylerEther)\
**Post date:** [July 20, 2023, 6:20pm UTC](https://forum.truefi.io/t/proposal-restrict-slashing-of-stktru-to-owner-role/1445/4 "2023-07-20T18:20:24Z")

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Support! This has been talked about for a while now, and the ability to game the slashing system, the low price of TRU, and the low liquidity of TRU renders slashing an ineffective way to protect lenders.