Diverse rewards and compounding for staking

Proposals
1

Background

There are different opinions about what type of money actually has value. Some people take BTC or ETH above everything, others like Gold, quite a bunch still like USD and then there are people who would like to compound their investments in cashflow producing assets - like PERP.

As it stands right now, the staking rewards from Perp will be paid in USDC. Converting this type of money into the preferred form of the individual involves a lot of transaction costs at the moment. [simulated with current gas prices]

  • Claim reward [31$]
  • Exchange the reward on Uni [36$]
  • in some cases staking the reward (if perp) [87$]

Proposal

  1. Give a few options to token holders in which currency they want to receive their reward. I suggest:
  • USDC
  • renBTC
  • (W)ETH
  • PERP

This can be a dropdown in the frontend before people press the staking button. After PERP is staked, the related rewards will be periodically exchanged for the selected currency. Since this involves a transaction anyways, it can be combined with a send-transaction to the owner´s address. Therefore, it eliminates the need to claim the reward. This whole process could be outsourced to Keep3r and financed by a fraction of the exchanged rewards. (for many stakers this still ends up being cheaper than claiming individually)

  1. For people who select PERP as reward, give the option (checkbox) for autocompounding. Instead of receiving the PERP rewards into their wallets, stakers benefit from “gasless” autocompounding into a cashflow producing protocol that they want to support long term.

What do you think? Let´s discuss.

For

Implement the proposal

Against:

No changes

2

Hmm I’m not sure how this will support Perp? If anything it reduces the rewards to Perp holders as we’d have to spend gas for every instance someone wants to withdraw in something else?

3

@DeFiChad thanks a lot for your suggestion! Drop your discord username or a 0x address here and we’ll send a thank you :wink:

I agree with Nick, however I would propose an intermediary step and/or solution: someone should make a proposal to give USDC rewards on xDai (current plan is to give these rewards on Ethereum) or create ‘hybrid staking’ where users can choose to stake on Ethereum or xDai.

Benefits: users can cheaply swap USDC rewards to their preferred asset, or even use it to start trading on perp.exchange. Let’s say you are a BTC bull: receive USDC rewards, and immediately long BTC 5x on perp.exchange.

As for automating any of these options, it’s very likely to fall outside the scope of our near- to mid-term development. Too many awesome features to launch :sweat_smile: