Introduce a Redemption Guard to Reduce Value Leakage

General
1

Overview

This proposal introduces a guard on the Redemption Handler to reduce avoidable value leakage and internalize profitable opportunities to the Resupply treasury. The table below provides a conservative estimate of the monthly value leaked to external redemption bots.

Month Value Lost
Jan 2026 $16,060.83
Dec 2025 $11,303.84
Nov 2025 $30,954.21

When the guard is enabled, redemptions within a defined price threshold are restricted to a trusted Redemption Operator contract. This operator executes redemptions only when profitable and forwards all resulting profits to the Resupply treasury.

To ensure liveness and safety, redemptions automatically revert to fully permissionless if:

  • reUSD trades below the configured price threshold, or
  • the guardian disables the guard.

Because the Redemption Operator may need to be whitelisted at permissioned flashloan facilities, it is deployed behind a UUPS proxy to allow upgrades without repeated external whitelisting. This proposal also introduces an Upgrade Operator to simplify upgrades and authorizes it on select proxies: Redemption Operator and Guardian.

Specification

  • Configure new Redemption Handler

    • guardEnabled = true
    • permissionlessPriceThreshold = 0.985e18

  • Set registry keys

    • REDEMPTION_HANDLER
    • REDEMPTION_OPERATOR
    • REUSD_ORACLE
    • UPGRADE_OPERATOR

  • Set operator permissions (via Core)

    • Allow UPGRADE_OPERATOR to upgrade the REDEMPTION_OPERATOR proxy
    • Allow UPGRADE_OPERATOR to upgrade the GUARDIAN proxy
    • Allow Guardian proxy to call updateGuardSettings on the new Redemption Handler
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