Proposed by: Hubert
Summary
This proposal aims to define how the Top Cake campaign will end, and how the sdCAKE locker can scale in the long term after the airdrop. It proposes to fix a date for the Top Cake snapshot, and to put in place the various liquidity maintenance mechanisms that are already used on Mainnet for other lockers.
Context and motivation
In November 2023 the CAKE liquid locker was launched, and the Top Cake campaign started.
Nearly one year later, Stake DAO is the third largest holder of veCAKE, second biggest wrapper, and has the best peg amongst wrappers.
It is now time to move sdCAKE to the next phase to fuel its future growth.
The Top Cake campaign has been accumulating tokens and currently has around 400k SDT, which is a good amount to bootstrap users’ veSDT position.
In parallel, Stake DAO has been subsidising the liquidity of sdCAKE and SDT through a grant received from Binance which is now fully executed. There is a need to put in place a long term scalable liquidity solution, which can allow anyone to exit as smoothly as possible, and that can even showcase sdCAKE to new CAKE users.
Proposal specifications
Top Cake campaign
It is suggested to set an end date to the Top Cake campaign on the 30th of September 2024 and to use the remaining time to enable the lock of the maximum possible CAKE amount until then. This means that:
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On this date, a snapshot will be taken of the cherries, and the fees accumulated will be distributed soon after.
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Since there is an airdrop process, it also seems appropriate that Stake DAO formally acknowledges the ownership of the CAKE Liquid Locker.
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After the airdrop, sdCAKE voting becomes subject to veSDT boost.
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Ideally, when vlSDT becomes live, it is built in a way that allows users to lock SDT directly on other chains.
Long term liquidity scalability
As for the long term liquidity, it is suggested that to follow the path showed by the other mainnet lockers, in particular the CRV liquid locker:
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sdCAKE in the liquidity pool will vote for the liquidity pool with 90% of the corresponding voting power (assuming they have minimum boost when boost is live)
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sdCAKE in the liquidity pool will vote for the SDT/BNB liquidity pool with 10% of the corresponding voting power (assuming they have minimum boost when boost is live)
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Two thirds of sdCAKE fees on native CAKE rewards will be used to finance vote incentives for the sdCAKE/CAKE pool when the pool holds less than 10% of the sdCAKE supply
Implementation
This proposal requires some developer time sized as follows:
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2-4 developper-days for the airdrop
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1-2 developper-days for the vote boosting implementation
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2-4 developper-days for the liquidity maintenance mechanisms
No other resources will be requested from the DAO.
Voting options
- Yae: agree with:
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Stake DAO acknowledging the ownership of the CAKE liquid locker;
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Setting the date of September 30th 2024 as end date for Top Cake, and implementing the boosted voting power afterward
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Putting in place the liquidity maintenance mechanisms discussed above and present on other lockers
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Nae: delay the decision on Top Cake’s end
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Rework proposal
Admins: veSDT holders
Community Feedback: Minimum 3 days
Voting Duration: 7 days