Set ACX emissions for USDT staking

Author(s): Britt Status: Proposed Related Discussions: n/a

Summary:

Across just re-launched support for USDT. The purpose of this proposal is to suggest a starting ACX emissions rate of 5,000 ACX per day on staked USDT.

Motivation:

Across uses ACX emissions to incentivize liquidity in several of our pools. Given that USDT is newly enabled, we want to make sure to incentivize liquidity in this pool as well in order to meet demand we expect to start seeing for USDT bridging on Across.

Specification & Implementation:

To implement ACX emissions for a new pool, there are a few steps that need to be taken.

First, a starting emissions rate needs to be determined. For the USDT pool we are recommending a starting emissions rate of 5,000 ACX per day, which is distributed pro-rata based on your staked position for USDT LP tokens in Across. For more information on our Reward Locking Mechanism, you can read this article.

Next, the Across engineering team will need to enable USDT staking within the AcceleratingDistributor contract. The AcceleratingDistributor is a contract that can reward ACX to any staked ERC20. In this case it’ll be Av2-USDT-LP staked to earn that ACX. At this point, users will be able to start staking their USDT LP tokens to earn ACX rewards in addition to the standard LP rewards earned.

Finally, ACX needs to be sent from the treasury to the AcceleratingDistributor contract. This is a task that is currently executed by the Across Council on an as-needed basis to replenish the ACX as it is distributed.

Rationale:

We feel that 5k ACX per day is consistent with incentives for non-USDC stable coins on Across currently (DAI). This value is something that can be adjusted and should be revisited regularly as liquidity grows. Pool utilization is continuously observed to try and maintain a proper pool size to support volume. ACX rewards that flow through the Accelerating Distributor are evaluated currently on a monthly basis.

Voting:

A "yes" vote will result in the Across engineers enabling USDT staking with a starting emissions rate of 5,000 ACX per day.

A "no" vote will result in Across engineers NOT enabling USDT staking with a starting emissions rate of 5,000 ACX per day. A subsequent vote would be required to enable staking.

Note: This vote is not oSnap eligible