Module Name: Proxy Module
Type/Category: Proxy —> DssCdpManager.sol, VoteProxy.sol & DssProxyActions.sol
The Proxy module was created in order to make it more convenient for users/developers to interact with the Maker Protocol. It contains contract interfaces, proxies, and aliases to functions necessary for both Vault management and Maker governance.
manager) was created to enable a formalized process for Vaults to be transferred between owners. In short, the
manager works by having a
dss wrapper that allows users to interact with their Vaults in an easy way, treating them as non-fungible tokens (NFTs).
The VoteProxy facilitates online voting with offline MKR storage. By having a VoteProxy, this allows users to have a linked hot wallet that can pull and push MKR from the proxy’s corresponding cold wallet and to DS-Chief, where voting can take place with the online hot wallet.
There are two main reasons to have/use this contract:
To support two different voting mechanisms
To minimize the time that MKR owners need to have their wallet online.
dss-proxy-actions was designed to be used by the Ds-Proxy, which is owned individually by users to interact more easily with the Maker Protocol. Note that it is not intended to be used directly (this will be covered later). The dss-proxy-actions contract was developed to serve as a library for user's ds-proxies.
In general, the ds proxy receives two parameters:
Proxy library address
In this case, the dss proxy actions library.
Functions and parameters you want to execute.
For the developers who want to integrate with the
manager, they will need to understand that the Vault actions are still in the
urn environment. Regardless of this, the
manager tries to abstract the
urn usage by a
CDPId. This means that developers will need to get the
urn = manager.urns(cdpId)) to allow the
joining of collateral to that Vault.
One-time proxy setup cost: As a new proxy contract user, you will need to set it up before you can use it for future voting. The price of the setup will depend on the current Ethereum gas price but will ultimately make voting easier and safer for users.
Using dss-proxy-actions directly can result in the loss of control over your Vault: If you open a new Vault via the dss proxy actions (centralized) without a ds proxy you would be creating a Vault that is owned by the dss proxy actions that anyone could call publicly. It would be owned by the dss proxy actions contact and anyone could execute actions on your Vault. Therefore, if you use the dss proxy actions directly it can be quite risky.
Potential Issues around Chain Reorganization
open is executed, a new
urn is created and a
cdpId is assigned to it for a specific
owner. If the user uses
join to add collateral to the
urn immediately after the transaction is mined, there is a chance that a reorganization of the chain occurs. This would result in the user losing the ownership of that
urn pair, therefore losing their collateral. However, this issue can only arise when avoiding the use of the proxy functions via a profile proxy as the user will
join collateral in the same transaction.
The loss of private keys for both the hot and cold wallet will prevent you from voting.
Ds proxy is a general purpose proxy / there is always a risk when using a proxy
In terms of failure modes, this means you can execute a malicious proxy action as well as a direct action that could potentially send your ETH to a random address. To be extra cautious, you should check your wallets call data and/or audit what your wallet does as they could potentially present users with some unwanted random call data and execute unwanted actions.
Read more here (link)