SIP: Single-token Staking With a Twist

Background:

Swapr’s governance token SWPR was officially introduced on Aug 31st, 2021 with the mainnet launch of ArbitrumOne. The SWPR token has a multi-chain distribution that was outlined from the onset in a 26-epoch emmissions schedule, subject to reconfiguration by SWPR token holders and DXdao.

Liquidity mining campaigns in Swapr can be capped and/or locked. Capping them guarantees a certain minimum yield to stakers, and locking them makes sure liquidity isn’t withdrawn before the campaign end date.

After adding liquidity to a pair’s pool, a liquidity provider is issued LP tokens representing said liquidity. Those LP tokens can be staked in liquidity mining campaigns, allowing the staker to earn rewards.

From about a month ago, Swapr now also has single-token staking campaigns. Currently, single-token staking campaigns don’t issue LP tokens, as a campaign serves as both a liqidity pool and a farm at the same time. One deposits the specified token and earns rewards straight away without the need to stake LP tokens elsewhere.

Proposal:

Allowing single-token staking campaigns to issue LP tokens opens the door to interesting use cases. One is veTokens.
Depending on the campaign setup, when depositing Token to a single-token staking campaign, a staker will receive LP tokens that can also serve as veTokens.

The community /SWPR holders & SWPR pairs LPs on all networks, and DXdao/ could consider allocating all or x% of the remaining SWPR farming reward tokens /from the upcoming epoch emissions/, to a single-token staking campaign where stake is locked for a year /or any other period/. Then, the received LP tokens can be used as farming rewards in Swapr instead of regular SWPR.

Those LP tokens could be whitelisted in the Swapr governance Guild. For that purpose, the LP tokens of each campaign /even for the same staked token/ need to be unique, and the Guild has to account for their unlocking date.

Aside from being locked, the community can also cap the campaign and add x% extra SWPR as a reward. This will provide those earning those vested tokens with an almost fixed yield until the end of the campaign, which should increase demand for the vested tokens.

Finally, the reward can also be fully or partially locked in Carrot.eth and tied to a condition to increase Swapr protocol liquidity to $x-$y million by end of campaign /1 year ?/. This way the vested tokens will also serve as ‘success yield tokens’.

Should we try to do this?
  • Yes, sooner rather than later
  • It’s good to have it as a functionality
  • Maybe
  • No

0 voters

How much of the remaining epoch emissions should be locked?
  • 20-40%
  • 40-60%
  • 60-80%
  • 80-100%

0 voters

What is a good locked campaign duration for veSWPR?
  • 6 months
  • 9 months
  • 12 months
  • 15 months

0 voters

Vote on minimum yield, direct rewards vs carrots split, and campaign cap. /you can select up to 3 answers, minimum 2/
  • 0.1 - 0.5% APY total /direct + carrot/
  • 0.5 - 1% APY total /direct + carrot/
  • 1 - 2% APY total /direct+carrot/
  • Direct vs Carrot split 50/50
  • Direct vs Carrot split 25/75
  • No direct yield, only carrots.
  • Don’t cap the campaign, no minimum yield.
  • Cap the campaign to the fixed number of emissions, no LPs allowed, only the DAO/Guild.

0 voters

4 Likes

I didn’t quite follow this paragraph:

What does “remaining” refer to?

1 Like

I thought I should add some numbers for clarification.

Swapr epochs

The table above is a representation of the past and future reward emissions over the epochs. We’re now in the last row.

The current campaign on Arbitrum spans epochs 14&15. If we are to consider this proposal, signal vote, vote to approve parameters, and prepare to implement, it will take time, so there should be no more than 8 epochs left till the end of epoch 26. We’re looking at no more than 1.8m SWPR of the regular scheduled epoch emissions /excluding unallocated and reserve/.

20% of 280k is 56k
280k - 56k = 224k (split 50/50 between Arbitrum & Gnosis)
8 * 224k = 1.8m (rounded)