Staking or Safety Module

Dear Ibex,

Here is the IIP to determine whether we move toward the safety module in a short manner or we delay this upgrade for time/ressource reasons and stick with the former staking module.

I will try to expose the best pros/cons of both sides, in order to generate an objective vote on it.

The staking module would be quite similar to what we had previously, we would simply redeploy it back online. The safety module is a bit more complex and implies more coding/delay. Impermax team believes it has to be done ultimately, the question is when.

First, what is the Safety module?

As with staking, token holders will be able to deposit their IBEX in the safety module in order to earn a staking reward. The big difference lies in the fact that the safety module will work like an insurance fund for Impermax. The DAO will be able to vote to insure certain low risk pairs through the safety module. Note that by default all Impermax’s pairs will not be insured unless the DAO has voted specifically to insure that pair. In case of bad debt in an insured pair, the tokens in the safety module will be slashed (up to a maximum amount) and used to repay the bad debt. At the end of the day, it will be a way for the stackers to share the risk of the supplier (lenders), as they share the rewards. It is an approach aiming at aligning interest on the positive (yield) as on the negative side (slashing/bad debt requiring to be covered) of potential events. The idea is do we try to deploy the staking module late Q1-23? Or we postpone it at least until the Uniswap V3 upgrade is advanced or completed?

Staking module :

Pros :

• Quicker to deploy (1 week);
• Generating traction for tokens holders;
• Aligning in the short term tokens holder interest with protocol success.

Cons :

• Will need to be changed eventually (additional work time);

Safety module :

Pros :

• Long term goal solution for de-risking lending;
• Will increase risk averse appetite from market participants.

Cons :

• Will take at least one month to code and maybe another month to audit;
• Will consequently delay Uniswap V3 progress and all other update in between;
• Risk of code issue since all of it will be quite new.