This forum post is to discuss the upcoming Governance proposal for liquidity incentives on the Super SOMM vault, which will go up for vote on Monday, December 11, 2023.
Description
This proposal is intended to authorize a one-time transfer of 150,000 SOMM from the community pool to the CellarStaking contract, which will be used to further incentivize cellar depositors on Ethereum Mainnet. This proposal is contingent on the Super SOMM Cellar Activation proposal passing. Although market conditions can change, at the current TVLs, we expect this program to distribute the authorized amount of tokens over a period of approximately 3 months, starting at the date this proposal passes and is enacted. The total amount of tokens for the proposed program represents 0.124% of the tokens in the community pool.
These funds will be used to incentivize further participation in the Super SOMM Cellar which has already gained over $200k in TVL. In the future, Sommelier may consider launching similar incentive programs with different parameters. Any future incentive program is outside the scope of this governance action and will require a new proposal.
If the proposal is accepted, the funds will be sent to the following address to be distributed via a vesting contract (which is different from the usual staking/bonding setup): 0x7340D1FeCD4B64A4ac34f826B21c945d44d7407F
A multisig on Ethereum Mainnet, 0x7340D1FeCD4B64A4ac34f826B21c945d44d7407F and operated by Sommelier contributors, has administrative powers to govern the parameters of the program under a 4-of-7 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 SuperSOMM 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
Kristi Polsdam
Joseph Terrigno
Stephanie Vaughan
Sunand Raghupathi
Crispy Mangoes
Josh Kessler
This proposal, if accepted, will spend 150,000 SOMM from the community pool to the following address to be distributed via a vesting contract (which is different from the usual staking/bonding setup): 0x7340D1FeCD4B64A4ac34f826B21c945d44d7407F. 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
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