SDIP #1.1 - Adjust SDT allocation for Passive ETH and Passive BTC Startegy

Important:

  1. xSDT HOLDERS WILL BE ABLE TO VOTE ON THIS PROPOSAL. IF YOUR xSDT ARE STAKED IN THE PALACE, PLEASE WITHDRAW THEM TO BE ABLE TO VOTE. (There are no penalties for withdrawing from the palace).

  2. You have untill ~1 PM UTC 16/06/2021 to suggest changes/additions to this proposal.

  3. In order to vote you must hold xSDT in their wallet before the snapshot for this vote is triggered at block 12,645,833.

  4. The vote will run for 48 hours from 1 PM UTC 16/06/2021 until 1 PM UTC 18/06/2021.


Summary:

With the launch of the new ETH strategy this proposal aims to update the distribution of SDT to strategies, shifting some SDT emissions from the existing BTC strategy to the new ETH strategy.

If approved, this proposal will be marked as approved and updated here to reflect when implemented. Following this, we will share the changes via our social media channels.

Proposed rewards per block

Strategies (62.5%)

  1. Euro strategy: 0.80 SDT
  2. 3CRV strategy: 0.25 SDT
  3. BTC strategy: 0.20 → 0.10 SDT (-50%, all-in APR: 10%)
  4. Perpetual Strategy: 0.80 SDT (via the Balancer pool)
  5. Polygon Curve strategy: 0.50 SDT
  6. Introduce ETH Strategy: 0.10 SDT

Liquidity (37.5%)

  1. Comethswap ETH/SDT: 0.20 SDT
  2. Sushi ETH/SDT: 0.25 SDT
  3. Uniswap ETH/SDT: 1.00 SDT

Motivation:

The purpose of these SDT incentives has always been twofold: to distribute governance rights to active Stake DAO platform users and incentivise the flow of capital towards the most profitable strategies.

As the passive BTC strategy is bringing less value to the DAO than other incentivised strategies, it makes sense to redirect part of the attribution of governance rights from the BTC strategy to the new ETH strategy.

The adjustment of SDT rewards would still enable Stake DAO to have the best APY in the market for BTC (10% APR, versus Yearn: 1.7%, Convex: 9.4%)

BTC Strategy:
Holdings: 240BTC / $9.6m
APY: 7.0%
SDT rewards: 0.2 per block, c.9,300 SDT per week
DAO revenue: $2,260/week


Specification:

Introduction of SDT emissions for the new ETH Strategy

Ethereum is the base layer for most if not all of the DeFi space. As such Stake DAO has developed an ETH strategy for the Herd.

This strategy automatically invests ETH (ETH, sETH) into the Curve Liquidity Pool (sETH). The strategy earns trading fees based on the pool trading volume, and it earns additional CRV token rewards from Curve. The strategy rewards are periodically compounded to maximise returns.


For:

  • Supporting capital inflows in ETH for Stake DAO.
  • Rewarding LPs that generate higher revenue for the DAO on a relative basis.

Against:

  • Reducing governance rights for BTC Strategy entrants.

Voting

On-chain voting on whether this proposal should be implemented as specified above will occur on our signal here.

4 Likes

I like the dynamic around incentives…

1 Like

Can we consider ETH vault trough ribbon.finance ? they have 2 digit APY for ETH single staking

more coming on this, right now its too manual

it looks like an interesting project, if it brings value to the DAO we definitely can

1 Like

The vote is queued, the snapshot for this vote is at block 12,645,833 ~1PM UTC today. xSDT Holders at the time of snapshot have from 1PM UTC 16/08 until 18/06 1PM UTC to cast their vote.

SDIP #1.1 has passed, see its implementation notes here.