Abstract

Staking DRC in Dracula Protocol currently will earn users a portion of each drain, which is paid in ETH. This staking does not give a receipt token, such as the BLOOD token we had in V1, due to ETH being the reward token. As we wait to redeploy V2.1, the Dracula team has decided to take this time to work towards a potential improvement of DRC staking.

Proposal

Allow staked DRC to be tokenized with a receipt token, xDRC. With this change, rewards for DRC stakers will no longer be in ETH, but will be in DRC that is bought off the open market with the ETH accrued from the drain. In order to harvest rewards, DRC stakers will have to withdraw. Without withdrawing, DRC stakers will have their yields autocompunded with no action on their part.

NOTE: This proposal does not affect rewards for LP, only single-asset DRC stakin.

Pros

Users will earn DRC, which will now have constant buy pressure from a portion of the drain. This DRC will be autocompunded, which will save users money from not having to spend gas. While staked, users will have the token xDRC in their wallet, which will enable voting without having to unstake and lose yields. The xDRC token will also allow for further utility, such as being able to use it as collateral to borrow against, such as on a RARI fuse pool.

Cons

In order to make these changes, we will have to deploy a new staking contract which will require current DRC stakers to have to unstake and deposit into the new contract. Users will also be unable to earn yields in ETH. In order to claim rewards, users will have to unstake their deposit instead of harvesting.

Vote

Yes - Staking should be changed in order to receive a tokenized deposit (xDRC) and rewards for stakers should be in DRC, not ETH.

No - Keep staking contracts as they are currently, where staked DRC is not tokenized and rewards are in ETH.