Curators

Diffuse Prime architecture is designed to be flexible and upgradable, with safeguards to ensure that Curators, initially the core team and later governance participants, can manage the system responsibly.

Curators are entrusted with keeping the protocol safe, efficient, and fair. Their main responsibilities include:

• Launching new vaults. Define the base asset, approved yield strategies, accepted collateral types, target APY for lenders, duration, borrowing and lending caps, and liquidation pipelines (e.g. a custom direct redemption adaptor).

• Fee and reward configuration. Adjust protocol fees and reward settings as described in Protocol fees.

• Oracles update (time-locked). Introduce or update oracles to support new yield strategies, if needed.

• Yield strategy management. Add, remove, or freeze yield strategies. Each new strategy is deployed with its own parameter set.

• Parameters update. Modify vault or yield strategy parameters to adapt to market conditions. Curators are the only role with live update permissions.

• Borrower withdrawals at maturity. Ensure borrowers can withdraw their collateralized positions once the term has ended.

• Whitelisting management. For private vaults, curators manage whitelists of permitted addresses. They may also switch a vault from private to public or vice versa, though typically this is determined at creation.

• Emergency stop. A last-resort safeguard mechanism inspired by protocols like MakerDAO, designed to protect user funds in extreme events such as bugs, hacks, or market crises. The emergency stop will mean:

  • Halt on all new activity (e.g., vault creation, borrowing, and strategy operations).

  • Certain existing actions may also be freezes to minimize risks.

  • After the shutdown, Curators will communicate recovery steps enabling safe withdrawals once the issue is resolved.

This tool is intended only for critical scenarios, and ideally will never be used. In all cases, Curators will balance the needs of Borrowers (affordable and predictable borrowing terms) with those of Lenders (strong, risk-adjusted returns).

Curator appointment

Initially, Diffuse Prime core team will act as curators, with the possibility of adding new curators and decentralizing these responsibilities over time.

There is a public list of trusted curator addresses available for vault creators to choose from. Future versions may allow custom vault curators, enabling specialized management for private or niche vaults.