[Temperature check] - LP staking implementation for IDLE (3/3)

Summary

This is the third poll that defines the LP staking parameters. You can find the others in the [Snaphot page]. This poll aims to identify if the feature for an “early unstaking” fee will be available in the pool(s). Liquidity Staking is the process of locking the IDLE assets you deposit on a DEX pool (either ETH pool or stablecoin pool) and earning rewards in return. The LP program will last 6 months with the possibility of extension (even multiple times if the community decides so) with the reward funds coming from the Ecosystem Fund. Forum Discussion link https://gov.idle.finance/t/final-discussion-for-the-lp-staking-implementation-for-idle/346

Details

Early withdrawal % slash – Voting option 1: If/when LP’s fail to lock their tokens for the agreed interval, an “early unstaking” fee will be charged and a part of the rewards can be diverted to other LPs, Idle Smart Treasury, or another place where they can be used to incentivize value-additive actions in the protocol. If the community votes for this option, the next discussion will face the following tech approach: develop an internal solution or adopt the GYSR model (feature available from the next month)

Slashing unvested rewards – Voting option 2: LPs vest their rewards over time (can be back loaded or linear) with early withdrawal forfeiting any unvested rewards (which can be diverted to other LPs, The Smart Treasury, or another place where they can be used to incentivize value-additive actions in the protocol). If the community votes for this option, the next discussion will face the following tech approach: develop an internal solution or adopt the GYSR model (feature availability expected in ~1 month)

Time-weighted rewards – Voting option 3: In this option, a time bonus will be calculated and added to reward longer-term staking. If the community votes for this option, the next discussion will face the following tech approach: develop an internal solution or adopt the GYSR model (feature already available)

Voting Options

Please cast your vote on one of the following options to decide if we add the feature to have an early withdrawal penalty fee in the LP staking pools, for users that decide to unstake their LP ahead of the 6 month lock period:

1.   Early withdrawal % slash
   

2.  Slashing unvested rewards 
   

3.  Time-weighted rewards 
   

4.  Discuss more