Implement veSturdy (update)

Proposals
1

As of now, $STRDY has no utility but pure governance voting.
In order to sustain mechanics such as the current lending incentives, I propose implementing a ve-model (similar to curve and prisma)

Locking
*Allocate 15% (15 million) of the tokens for emission for the next 3 years linearly
*Users provide liquidity into a 80/20 STRDY/WETH balancer pool. Those lp tokens can be locked

  • Users receive lock weight by locking 80/20 STRDY/WETH lp tokens for a number of weeks. “Weeks” refers to the number of weeks that must pass before the tokens can be withdrawn.
  • The maximum duration for a lock is 52 weeks.
  • It is possible to extend the duration of an existing lock.
  • Every Thursday, the number of weeks for a lock decreases by 1. When the lock duration reaches 0 weeks, the tokens may be withdrawn at any time.
  • User lock weight calculation:
LOCK_WEIGHT = sum(weeks * balance for (weeks, balance) in USER_LOCKS)
  • Unlock with an exit fee:
    A user can choose to exit a lock prematurely but will pay a fee when doing so:
fee_amount = (total_amount * weeks_to_unlock) // 52

meaning if a user exits prematurely at week 26, the user pays 50% of the locked lp token to a treasury wallet, which redistributes 100% of those fees to the remaining lockers.

Emission Voting
veSTRDY holders allocate their weekly lock weight towards one or more emission receivers. Emission receivers are silos, aggregators veSTRDY gauge (locked STRDY/WETH pool), but can be extended to new products deployed on sturdy. 100% of total weekly emissions are allocated for receivers with the constraint that emissions for veSTRDY are capped at a maximum of 25% of weekly emissions. The ratio of lock weight votes between all emission receivers determine the weekly STRDY emissions the receivers accrue. Voters receive unlocked STRDY. As voting involves gas consumption, the vote a user signed for the current week shall be set also for the following week(s) until overwritten by a new vote. Emissions for receivers are distributed as locked STRDY with 8 week lock. Projects can assign rewards to voters in order to incentivize deeper liquidity on their silos or aggregators. veS

fee mechanism
sturdy implements a fee mechanism on the yield users of the silos and aggregators gain, initially with 0% but depending on market conditions can be increased by governance. veSTRDY holders receive the fees pro rata to their lock weight.

1 Like