[SIPS-084] Turbo GHO Co-Incentives


This forum post is co-written by Seven Seas and @TokenLogic - @MatthewGraham and is intended to discuss the upcoming Governance proposal for liquidity co-incentives on the Turbo GHO vault.


This publication suggests a one-time transfer of 540,000 SOMM from the community pool to a to-be-created multisig that will then transfer to the CellarStaking contract as co-incentives to grow the Turbo GHO vault on Ethereum Mainnet. The delivery of this SOMM is contingent on receiving an equal or greater value of GHO incentives, which, at the current $0.12 SOMM price, is calculated to be $64,800. When the required GHO are received, this program will distribute the authorized amount of tokens through the CellarStaking contract over a period of 90 days. The total amount of tokens for the proposed program represents 0.427% of the tokens in the community pool.

Aave DAO is presently discussing the distribution of GHO incentives to the Turbo GHO Vault. Upon receiving an assigned budget from Aave DAO, the GHO Liquidity Mining Committee will have the capability to assign rewards to the Turbo GHO vault. Seven Seas has been collaborating closely with TokenLogic to optimize the strategies within the vault to align with Aave DAO’s goal of restoring and maintaining the GHO peg.

This opportunity marks Sommelier’s first collaboration with Aave DAO outside of receiving a grant to support the initial build and audit of the vault.

The tokens prescribed by the program will be distributed pro rata to users on Ethereum Mainnet who elect to bond TurboGHO in Sommelier’s staking contract. The CellarStaking smart contract (cellar-staking/CellarStaking.sol at main · PeggyJV/cellar-staking · GitHub) governs the bonding of TurboGHO 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 TurboGHO 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 7 days, a 30% boost for locking for 14 days, and a 50% boost for locking for 21 days.

This smart contract,0x6e5bb558D6C33Ca45dc9eFE0746a3C80BC3E70e1, 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 to-be-created multisig on Ethereum Mainnet and operated by Sommelier Contributors as well as an Aave representative, has administrative powers to govern the parameters of the program under a 4-of-7 signing scheme. The SOMM will be sent to the SOMM Multisig address. They will then be sent to the CellarStaking contract contingent on the Aave Gho proposal passing. If it doesn’t, the SOMM will be returned to the community pool.

The multisig is able to perform the following actions:

Transfer the SOMM funds to the CellarStaking contract

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 TurboGHO 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

Joseph Terrigno

Kristi Polsdam

Crispy Mangoes

Sunand Rhagupathi

Josh Kessler

To-Be-Announced Aave Representative


If this proposal is accepted by governance, 540,000 SOMM from the community pool will be sent to the SOMM multisig address. They will then be sent to the CellarStaking contract contingent on the Aave Gho proposal passing. If it doesn’t, the SOMM will be returned to the community pool. In the event that the required GHO are not received, the 540,000 SOMM will be returned to the community pool.

The multi-sig will be responsible for distributing the SOMM rewards according to the parameters outlined above.

Reference Links:

CellarStaking Contract: cellar-staking/CellarStaking.sol at main · PeggyJV/cellar-staking · GitHub

CellarStaking deployment:


Ethereum Mainnet multisig: Safe{Wallet}

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


This publication was jointly developed with TokenLogic. TokenLogic is currently progressing towards becoming a Service Provider to Aave DAO. TokenLogic is also a delegate within the Aave ecosystem. TokenLogic receives no benefits or payment for the creation of this proposal.


Copyright and related rights waived via CC0.

The multisig address is: 0x3b2BCF91e4e6B24e19a5326eF64636707D74cEb3.

In order to deliver the GHO incentives to the vault, a vesting position needs to be added to the Turbo GHO vault. This proposal will also be authorizing the addition of the vesting adaptor and vesting contract to the Turbo GHO vault.

GHO vesting contract: 0x70664b1F1c443bec0353A0ea6BBD9cCcB5A4844C
Vesting adaptor: 0x3b98BA00f981342664969e609Fb88280704ac479