How Does a Malicious Governance Proposal Differ from an Oracle Attack?
An oracle attack manipulates the input data (price feed) the smart contract uses to make decisions. A malicious governance proposal, however, uses the legitimate governance mechanism (voting) to intentionally change the smart contract's logic or parameters, such as redirecting funds or changing the collateral type to a worthless asset, effectively exploiting the system's decision-making process.
Glossar
Malicious Governance Proposal
Governance ⎊ A malicious governance proposal represents a significant risk within decentralized autonomous organizations (DAOs) that manage crypto derivatives protocols.
Governance Mechanism
Framework ⎊ The governance mechanism, within cryptocurrency, options trading, and financial derivatives, establishes the rules and processes dictating decision-making and operational control.
Malicious Governance
Action ⎊ Malicious Governance describes the coordinated Action by a dominant stakeholder group to exploit a decentralized autonomous organization's (DAO) voting mechanism for private financial gain, often at the expense of minority token holders or protocol integrity.