Here below a recap:
- Option to have veDOUGH as a form of yield distribution from DOUGH staking
- Inspired from Alchemix v2 roadmap mentioning allowing users to forfeit the yield gained on their collateral to the transmuter in exchange for ALCX and I’ve been thinking it could apply well to veDOUGH. The idea would be to allow the treasury to compound your part of the farming yield/fees in exchange for more veDOUGH.
- It would benefit all veDOUGH holders because it would make the treasury grow faster (some of the 60% given to veDOUGH holder would be compounded instead of distributed)
- It gives a choice to veDOUGH holders to get their yield in veDOUGH itself, auto-compounding if this option is chosen.
- This proposal would not be mutually exclusive to the ones currently being voted in PIP-64. Having rewards as BCP/PLAY is a good way to increase TVL with rewards but does not achieve the same goal so it should not be seen as an equivalent alternative. These propositions would be addressing different needs.
While an auto-compounding solution may require some development, a practical way to provide this veDOUGH compounding option starting from the first distribution occurring in November would be the following:
1) Any active DAO member willing to compound to veDOUGH could claim his/her SLICE, and send it to the DAO multisig
2) The DAO multisig would be whitelisted in the staking contract in order to be able staking DOUGH on behalf of 3rd parties, which would be receiving the corresponding amount of veDOUGH (36 months staked).
3) On a weekly basis, the core team would publish a SLICE/DOUGH conversion rate (based on 3days average DOUGH price and SLICE NAV) and mint to each address sending in SLICE an equivalent amount of veDOUGH + some additional veDOUGH as a lump sum to cover the gas spent on the 2 transactions to claim and send the SLICE in
A snapshot vote will be shortly available for everybody to express a preference on this option.