[SIPS-100] Upcoming Turbo SOMM Liquidity Mining Incentives Proposal
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 Wednesday, December 20, 2023.
Description
This proposal is intended to authorize redirecting the remaining 360,000 SOMM from the multisig established in SIPS 84 (Turbo GHO co-incentives) to a different multisig on Ethereum Mainnet, 0x7340D1FeCD4B64A4ac34f826B21c945d44d7407F operated by Sommelier contributors. These 360,000 SOMM are to be used as incentives for cellar depositors of the Turbo SOMM vault.
The SOMM co-incentives in SIPS 84 were intended to be used over a period of 90 days and were contingent on receiving an equal or greater value of GHO incentives. The GHO Liquidity Committee terminated their direct incentives to the Turbo GHO vault after 1 month’s time and therefore 360,000 SOMM or two thirds of the Turbo GHO program was unspent. Instead of having these SOMM sit idle, we are requesting that they be used as liquidity rewards for depositors in the Turbo SOMM vault.
Although an incentive proposal for Turbo SOMM recently passed, a significant portion of that SOMM will be used to account for the recent surge in SOMM price and associated impermanent loss. Although market conditions can continue to change, at the current TVLs, we expect this program to distribute the authorized amount of tokens over a period of months starting at the date this proposal passes and is enacted. Any future incentive program is outside the scope of this governance action and will require a new proposal.
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 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
If the proposal is accepted, 360,000 SOMM from the multisig established in SIPS 84 (Turbo GHO co-incentives) will be sent to a different multisig on Ethereum Mainnet, 0x7340D1FeCD4B64A4ac34f826B21c945d44d7407F operated by Sommelier contributors. These 360,000 SOMM are to be used as incentives for cellar depositors of the Turbo SOMM vault. 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
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