DAO and Labs structure
How Monstro DAO and Monstro Labs each play a role in owning and operating Based Loans.
Based Loans operates under a dual-entity structure. Monstro DAO is the protocol owner, and Monstro Labs is the protocol operator. The two entities have separate roles, separate multisig keys, and separate scopes of authority. Neither one can act unilaterally on matters reserved for the other.
Monstro DAO
Monstro DAO is the protocol owner of the Based Loans contracts. Ownership is held through a 5-of-7 multisig at address 0xa673566A818e3525E57292b22311AD0be114085C.
The DAO controls:
- Protocol-level parameters: fee rates, loan term configurations, global fee settings
- Turning collateral assets on or off (Labs can do this too)
- Appointment and removal of the Labs operator role
- Any future upgrade or migration of core contracts
Decisions at the DAO level are made by verified Monstro DAO members, who stake MONSTRO to join and vote. Any verified member can submit a proposal. For full details, see the Monstro DAO documentation.
Monstro Labs
Monstro Labs is the development and operations arm of the Based Loans protocol. It holds the operator role through a 2-of-2 multisig at address 0x3970a7372566ad1Fb888a8240A89662A5D2455E5.
The Labs operator role covers:
- Oracle maintenance and configuration
- Day-to-day asset listing operations within parameters set by the DAO
- UI and frontend development
- Technical upgrades to non-core infrastructure
- Incident response and emergency pause authority (see Immutability and ownership)
The operator role is deliberately scoped. Monstro Labs can adjust operational settings but cannot override DAO-controlled parameters or move user funds.
What neither entity can do
Neither Monstro DAO nor Monstro Labs can withdraw or redirect user funds. Lender USDC held in the protocol is controlled by the smart contract logic and released only through user-initiated actions: loan matching, buyback payments, or withdrawal of unmatched deposits. Borrower collateral is locked in the contract and released only when a borrower buys back or a lender claims after expiry.
The dual-entity structure separates governance authority from operational authority, and both are separated from custody of user assets.
Summary
| Entity | Role | Multisig |
|---|---|---|
| Monstro DAO | Protocol owner | 5-of-7 |
| Monstro Labs | Protocol operator | 2-of-2 |
- The DAO controls protocol parameters, fee rates, and the operator role.
- Labs handles day-to-day operations: asset additions, oracle maintenance, and UI development.
- Neither entity can access or redirect lender USDC or borrower collateral.
- Full DAO governance details are documented at docs.monstrodefi.com.