Upcoming Steady ETH & Steady BTC Liquidity Mining Incentives Proposals
This forum post is to discuss the upcoming Governance proposals for liquidity incentives on the Steady ETH & Steady BTC Strategies, which will go up for vote on Wednesday, November 23, 2022.
1. Steady ETH Liquidity Mining Incentives Proposal
This proposal is intended to authorize a one-time transfer of 50,000 SOMM from the community pool to the CellarStaking contract, which is used to incentivize Strategy participants on Ethereum Mainnet. This program will distribute the authorized amount of tokens over a period of 14 days, starting at the date this proposal passes and is enacted. This program is intentionally designed for a short duration to encourage participants to try strategies now as opposed to waiting to participate later on. The total amount of tokens for the proposed tokens for this program represents 0.035% of the tokens in the community pool.
These funds will be used to encourage participation in Sommelier’s Steady ETH Strategy. This proposal is also contingent upon approval of the cellar activation proposal for the Steady ETH Strategy. In the future, Sommelier may want to launch similar incentive programs with different parameters - any future incentive program is outside of the scope of this governance action and will require a new proposal.
The tokens prescribed by the program will be distributed pro rata to users on Ethereum Mainnet who elect to bond SteadyETH in Sommelier’s staking contract. The CellarStaking smart contract (cellar-staking/CellarStaking.sol at main · PeggyJV/cellar-staking · GitHub) governs the bonding of SteadyETH and the distribution of the tokens reserved for SOMM rewards. Pro rata allocation is determined based on share of the pool, where that share is equal to the amount of the user’s SteadyETH tokens deposited, multiplied by a “boost” determined by the amount of time those cellar shares are locked for. Shares receive a 10% boost by locking for 10 days, a 20% boost for locking for 14 days, and a 25% boost for locking for 20 days.
This smart contract, deployed at address on [0xaE0E6024972b70601bC35405479Af5Cd372CC956] on Ethereum mainnet, is based on canonical staking conventions used across the Ethereum Virtual Machine, principally the Synthetix staking rewards contract, originally developed in 2018. Variations of this code have secured billions of dollars of rewards across various EVM-compatible blockchains. The CellarStaking smart contract has been audited by Macro, with the audit available here: cellar-contracts/Macro_Cellar_CellarStaking_07_2022.pdf at main · PeggyJV/cellar-contracts · GitHub
A multisig on Ethereum Mainnet, at address [0x7340d1fecd4b64a4ac34f826b21c945d44d7407f] and operated by Sommelier contributors, has administrative powers to govern the parameters of the program under a 2-of-4 signing scheme. The staking program must be funded with SOMM tokens directly from the Gravity Bridge; the multisig will not control any tokens reserved for the program.
The multisig is able to perform the following actions:
- Schedule a certain amount of tokens owned by the contract for distribution (via notifyRewardAmount)
- Set the duration of future rewards programs (via setRewardsDuration)
- Set the minimum deposit in aave2-CLR-S tokens in order to participate in the rewards program (via setMinimumDeposit)
- Pause and unpause bonding operations in emergency scenarios (via setPaused)
- Trigger a one-time emergency shutdown on the contract, which stops new reward accumulation and allows all depositors to withdraw their assets immediately, disregarding unbonding times (via emergencyStop).
The multisig is currently composed of a mix of early developers on the Sommelier Chain and protocol, Ethereum smart contract developers, and cellar strategists:
- Zaki Manian
- Jack Zampolin
- Kevin Kennis
- Joseph Terrigno
This proposal, if accepted, will spend 50,000 SOMM from the community pool in order to fund the CellarStaking contract according to the parameters of this proposal. The multisig shall be responsible for enacting the program according to the parameters of this proposal once the requisite SOMM tokens are funded by the validators.
Reference Links:
CellarStaking Contract: cellar-staking/CellarStaking.sol at main · PeggyJV/cellar-staking · GitHub
CellarStaking deployment: CellarStaking | Address 0xaE0E6024972b70601bC35405479Af5Cd372CC956 | Etherscan
Ethereum Mainnet multisig: Safe
Macro Audit: cellar-contracts/Macro_Cellar_CellarStaking_07_2022.pdf at main · PeggyJV/cellar-contracts · GitHub
Synthetix Staking Rewards Contract: synthetix/StakingRewards.sol at v2.63.1-alpha · Synthetixio/synthetix · GitHub
2. Steady BTC Liquidity Mining Incentives Proposal
This proposal is intended to authorize a one-time transfer of 50,000 SOMM from the community pool to the CellarStaking contract, which is used to incentivize Strategy participants on Ethereum Mainnet. This program will distribute the authorized amount of tokens over a period of 14 days, starting at the date this proposal passes and is enacted. This program is intentionally designed for a short duration to encourage participants to try strategies now as opposed to waiting to participate later on. The total amount of tokens for the proposed program represents 0.035% of the tokens in the community pool.
These funds will be used to encourage participation in Sommelier’s Steady BTC Strategy. This proposal is also contingent upon approval of the cellar activation proposal for the Steady BTC Strategy. In the future, Sommelier may want to launch similar incentive programs with different parameters - any future incentive program is outside of the scope of this governance action and will require a new proposal.
The tokens prescribed by the program will be distributed pro rata to users on Ethereum Mainnet who elect to bond SteadyBTC in Sommelier’s staking contract. The CellarStaking smart contract (cellar-staking/CellarStaking.sol at main · PeggyJV/cellar-staking · GitHub) governs the bonding of SteadyBTC and the distribution of the tokens reserved for SOMM rewards. Pro rata allocation is determined based on share of the pool, where that share is equal to the amount of the user’s SteadyBTC tokens deposited, multiplied by a “boost” determined by the amount of time those cellar shares are locked for. Shares receive a 10% boost by locking for 10 days, a 20% boost for locking for 14 days, and a 25% boost for locking for 20 days.
This smart contract, deployed at address on [0xD1d02c16874e0714Fd825213e0C13eaB6dD9c25f] on Ethereum mainnet, is based on canonical staking conventions used across the Ethereum Virtual Machine, principally the Synthetix staking rewards contract, originally developed in 2018. Variations of this code have secured billions of dollars of rewards across various EVM-compatible blockchains. The CellarStaking smart contract has been audited by Macro, with the audit available here: cellar-contracts/Macro_Cellar_CellarStaking_07_2022.pdf at main · PeggyJV/cellar-contracts · GitHub
A multisig on Ethereum Mainnet, at address [0x7340d1fecd4b64a4ac34f826b21c945d44d7407f] and operated by Sommelier contributors, has administrative powers to govern the parameters of the program under a 2-of-4 signing scheme. The staking program must be funded with SOMM tokens directly from the Gravity Bridge; the multisig will not control any tokens reserved for the program.
The multisig is able to perform the following actions:
- Schedule a certain amount of tokens owned by the contract for distribution (via notifyRewardAmount)
- Set the duration of future rewards programs (via setRewardsDuration)
- Set the minimum deposit in aave2-CLR-S tokens in order to participate in the rewards program (via setMinimumDeposit)
- Pause and unpause bonding operations in emergency scenarios (via setPaused)
- Trigger a one-time emergency shutdown on the contract, which stops new reward accumulation and allows all depositors to withdraw their assets immediately, disregarding unbonding times (via emergencyStop).
The multisig is currently composed of a mix of early developers on the Sommelier Chain and protocol, Ethereum smart contract developers, and cellar strategists:
- Zaki Manian
- Jack Zampolin
- Kevin Kennis
- Joseph Terrigno
This proposal, if accepted, will spend 50,000 SOMM from the community pool in order to fund the CellarStaking contract according to the parameters of this proposal. The multisig shall be responsible for enacting the program according to the parameters of this proposal once the requisite SOMM tokens are funded by the validators.
Reference Links:
CellarStaking Contract: cellar-staking/CellarStaking.sol at main · PeggyJV/cellar-staking · GitHub
CellarStaking deployment: CellarStaking | Address 0xD1d02c16874e0714Fd825213e0C13eaB6dD9c25f | Etherscan
Ethereum Mainnet multisig: Safe
Macro Audit: cellar-contracts/Macro_Cellar_CellarStaking_07_2022.pdf at main · PeggyJV/cellar-contracts · GitHub
Synthetix Staking Rewards Contract: synthetix/StakingRewards.sol at v2.63.1-alpha · Synthetixio/synthetix · GitHub