Currently G$ stakings only offers GOOD token rewards.
Giving also G$ rewards for stakers would provide both a utility for G$s for claimers and an incentive to buy G$s in order to save.
I would like to open a discussion about the mechanics and implication of such a system.
Specifically how are rewards funded and what should be the rate of rewards.
The key points of my initial suggestion for the discussion are:
- allocate 5-10% of the daily G$ UBI (that is created via lowering the reserve ratio) towards a rewards fund. Those rewards will be used to pay interest to G$ savers.
-
give savers a fixed APY vs dynamic APY which is what you mostly see on DEFI today. APY should be set at 5-10%.Iām thinking dynamic APY is much simpler technicaly, simple is better for V1. - G$ rewards are minted on sidechains, that means that the sidechain, for short period of time, have more G$s than can actually be bridged back to mainnet. This should not be a problem as eventually G$s should be covered.
- There is a need to make sure that rewards that are minted and allocated on mainnet are:
- sent to the bridge periodically based on the APY debt
- are enough to cover current interest rate for the staked amounts
To solve these we would need a keeper/guardian/management committee that would have limited permissions to balance the bridges and decrease/increase APY.
- in future versions locked G$s should not sit idle and be used for market making or lending in order to cover some of paid interest. (market making/lending could produce selling pressure of G$, that can be fine as the savings feature would produce a buy pressure)
Links the proposal work in progress specifications:
G$ Staking/Savings: Notion ā The all-in-one workspace for your notes, tasks, wikis, and databases.
Rewards allocation from reserve ratio: Notion ā The all-in-one workspace for your notes, tasks, wikis, and databases.
Update 31/07/2022
Code that passed initial audit: