SDIP #3.1 - Distribution of EPS rewards

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. This is the first in a 2 part proposal; see “SDIP #3.2 EPS farming” here.

Summary

Thanks to our PPS, the Stake DAO deployer has received EPS here every Thursday for the past 8 weeks. As per the DAO’s governance vote, Stake DAO unlocked its EPS early (by burning half from each airdrop), to stake them on Ellipsis and to distribute a portion to the PPS and The Sanctuary.

This proposal is to clarify the next steps for the DAO to take in refence to the distribution of EPS rewards.

Specification

The DAO now has 632,045 EPS staked yielding rewards (347,257 EPS airdropped + 284,788 EPS rewards).

From the rewards, 75% (213,591 EPS) have been staked to benefit from the previously 4 figure APY (now ~350%).

We are now ready to distribute the remaining 25% (71,197 EPS) as specified:

  • 70% (49,837.9 EPS) to buy SDT, which will be split equally between gifts to The Sanctuary and to sdveCRV holders (proportional to their deposits).

  • 30% (21,359.1 EPS) to buy CRV to lock into the PPS. sdveCRV generated will not be staked in governance; therefore, it will not dilute returns for sdveCRV holders.

NB. Given the $ amount of rewards, it makes sense to accrue rewards over a month before bridging to Ethereum. This is so that claiming can be profitable for the majority of eligible claimants.

Given recent market events, should we convert 71,197 EPS now, convert a portion or wait for some upside?

  • Convert all EPS into SDT & CRV now
  • Wait and reevaluate the situation in a few days (or more)
  • Convert a portion, reviewing the situation again in a few days (or more)

0 voters

If you prefer “convert a portion”, leave your suggestions in the comments below. Whilst there are no “right” answers, data-driven insights are typically the next best thing.

After 2 days at 09:00 UTC on Monday 24 May, a vote will be published on signal to formalise the poll above. If there are multiple options to decide from, they will be presented to the DAO to vote on. Stake DAO will take a snapshot shortly prior to publishing the vote.

1 Like

Question that needs to be asked: Why did it take so long to start selling on the assets following the previous vote?

My vote: I’m happy to revisit this going forward, but this vote already passed and these tokens should have already been sold. We have plenty more rewards coming up, let’s discuss changing this going forward, but keep with the voted plan until there is a voted change of course.

1 Like

The question boils down to performance of EPS/CRV & EPS/SDT.

EPS/CRV is in a downtrend and I don’t see any reason why EPS would perform better then CRV in a foreseeable future, thus I vote for converting into CRV.

EPS/SDT is oscillating between 0.6 & 0.3 and might do so for a while as both are high-inflation coins, but I see much more upside potential in SDT so I vote for converting into SDT too.

So, convert now.

2 Likes

These should be put into the sdveCRV Balancer pool once implemented so that (1) the DAO doesn’t have to sell any existing assets to provide liquidity and (2) the DAO accrues fees which go back to the Sanctuary for any trading done in the Balancer pool.

also Curve is now on Polygon so low fees argument is weak, adoption is weak it looks like it’s mostly a few whales using it. Voted yes

Seriously, this. The final vote ended on 4th of April.
We could have bought 245% more SDT and 13% more CRV, if the vote was actually executed then.

Price of EPS then: $5.80
Price of SDT then: $6.26 (= 1.07 EPS)
Price of CRV then: $3.08 (= 1.88 EPS)

Price of EPS now: $0.69
Price of SDT now: $1.84 (= 2.66 EPS)
Price of CRV now: $1.47 (= 2.13 EPS)

1 Like

The vote is live now on signal, closing at 13:00 UTC tomorrow.