Overview

Pike employs a sophisticated multi-tiered governance system that balances operational efficiency with security through role separation and emergency response capabilities. The following diagram illustrates the governance structure:

Scope of Access

Protocol Owner

The Protocol Owner has ultimate control over the protocol’s architecture:

  • Can initiate deployments via the Factory

  • Assigns initial Governor and Emergency Executor addresses

  • Retains upgrade rights to core contract logic (through the Beacon pattern)

  • Manages reserve withdrawal and reserve split configuration

While powerful, the Protocol Owner does not have direct control over Timelock-governed actions.

Protocol Emergency Guardian

This role is independently assigned by the Protocol Owner and is designed for fast intervention. The Guardian can:

  • Pause or unpause key actions like minting, borrowing, liquidation, or transfers

  • Withdraw all reserves in emergencies

This role is not subject to Timelock delays and does not go through the proposal system. It operates independently for urgent cases.

Governor (via Timelock)

The Governor is the central authority for protocol configuration but operates under time-delayed execution.

All actions must be:

  • Proposed

  • Queued through the Timelock

  • Executed only after the defined delay

Through this flow, the Governor can control interest rate models, risk parameters, oracles, market caps, reserves, and more. Governance token holders may drive proposals, depending on the Governor implementation.

Emergency Executor

The Emergency Executor is a specialized governance role that provides immediate response capabilities within the Timelock system during critical situations.

This role has the same permissions as the Governor but can execute actions immediately without going through the standard proposal and delay process:

  • Execute any governance function that the Governor can perform, but without delays

  • Modify risk parameters, oracle configurations, and protocol settings instantly

  • Cancel scheduled proposals that haven't been executed yet

  • Perform batch operations for complex emergency responses

Governance Operations

Standard Governance Flow

All governance changes follow a structured process:

  1. Proposal - Governor submits changes through Timelock

  2. Delay Period - Mandatory waiting period for community review (configurable timelock delay)

  3. Execution - Anyone can execute proposals after delay expires

  4. Monitoring - Changes take effect and are monitored for impact

Emergency Procedures

Critical situations requiring immediate action bypass normal delays:

  1. Emergency Assessment - Emergency Guardian or Protocol Owner identifies critical issue

  2. Immediate Action - Emergency powers used to pause affected functions

  3. Resolution Planning - Standard governance process initiated for permanent fixes

  4. Service Restoration - Normal operations resumed after resolution

Security Architecture

  • Role Separation - Different roles have specific, limited authorities to prevent power concentration

  • Timelock Protection - Delays prevent hasty or malicious changes while ensuring transparency

  • Emergency Controls - Rapid response capabilities for critical situations without compromising normal governance

  • Dual Emergency System - Emergency Executor and Protocol Emergency Guardian serve different purposes for layered defense

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