Changes have been made to the below to incorporate feedback. Please do review.
We propose that a bridge be created to swap eDOUGH to veDOUGH with a non-configurable time lock of 3 years. Only eDOUGH that has vested for 6+months will be eligible for this bridge. Additionally we propose that unclaimed rewards be made claimable as 100% veDOUGH (i.e. no 80-20 split) with a 6month time lock.
Treasury farming will soon be launching for PieDao, this means those who hold DOUGH (distinct from the token eDOUGH) will be able to stake for a yield payed out in the new SLICE pie. DOUGH is the governance token for PieDao while eDough is an escrowed version of the token payed out to those who support the dao by providing liquidity. The proposal that implemented this change did not discuss what would occur with eDOUGH.
Currently we are faced with a handful of issues, in no particular order:
eDough is ineligible for its previous only function - voting.
This may be desirable for those who purchased Dough on the open market as excluding those who have previously committed capital to the Dao would give them an advantage in % of those staking, however I think the cost of this (alienating those previously assisting the Dao, possibly of sell pressure) outweighs the APR gain.Those who hold mostly eDough will have the majority of their funds excluded from first (several?) month of rewards already.
eDough positions will begin unlocking in November which may begin a sell off in the market
For obvious reasons it is always desirable to alleviate sell pressure.
As a PieDao LP you will soon need to perform 3 actions to fully take advantage of rewards
Claim eDough Rewards → swap to Dough → stake for veDough. All at mainnet prices and, for our American friends, with complicated tax implications.
We propose to solve the above issues a bridge be constructed to swap eDough to 3-year locked veDough with no option to configure the time lock. Preventing time lock configuration means the most benefit for the DAO as it guarantees long term commitment to the protocol while also maximizing the reward for the individual. Only eDough that has vested for 6months would be eligible for this bridge to prevent mass inflation of veDough. Those who are very close to the end of their escrow period and do not wish to stake (or swap to veDough) can exit their position and the normal time. In doing this we relieve a great deal of sell pressure, allow holders of eDough to enter into a staked position with only 1 transaction, realign all community interests, and effectively re-enable eDough holders voting rights.
Additionally, we propose that all claimable rewards be made claimable as 100% 6month staked veDough versus the existing 20% Dough 80% eDough scheme. This resolve issues LPs run into in the number of mainnet transactions required to full utilize their rewards and increases time lock in the protocol, further decreases sell pressure, and encourages investment in the protocol.
These two above solutions may launch at separate times due to complexity differences in implementation or other issues.
Items purposefully not discussed in this proposal
- Possible alterations the dopamine rewards rate
- Alterations to LP withdraw fees
- I mostly approve of the above proposal
- I have major issues with the proposal
Update: per Gabo on discord “the new-governance through veDOUGH should anyhow get implemented at a “later” stage (e.g. Early November) to avoid getting stuck in transition. Until then, snapshot votes would be triggered as is (therefore having eDOUGH counted), keeping as reference a snapshot prior to Staking commencement.” This vote is no longer relevant.
Update 2: The firm date is now the 18th to enable veDough voting. We will want to vote on this before then.
- Yes, include the eDough/LP holders
- No, wait until the veDough launch