KIP-127: Staking V2 Upgrade

Summary

In order to distribute USDC fees efficiently, upgrade StakingReward contract to support dual token rewards.

Abstract

Design, develop, and deploy a change to the core StakingRewards contract to enable distribution of both KWENTA and USDC. Remove the staking cooldown and deprecate the threshold requirement.

Motivation

The current USDC fee distribution requires waiting until a threshold ($500k) is reached in order to unlock a distribution. This is because there is a gas cost to claiming each discrete distribution and it's best to wait until larger fees can be distributed so that smaller stakers can receive a meaningful portion of the rewards. However, this is at the penalty of larger Kwenta stakers who may have to wait months before seeing a distribution, and makes distributions erratic. The threshold can be removed post upgrade.

Secondly, it's possible to "snapshot" the distribution by staking right before the threshold is met to be a part of the distribution. This incentivizes poor short term behavior and is the antithesis to staking. This is currently corrected by a staking cooldown to disincentivize snapshot or flash staking. There will no longer be a need for a cooldown post upgrade.

Lastly, this makes it easier to develop the compounding of KSX, where USDC can be swapped for KWENTA incrementally vs. in large clips periodically (subject to slippage).

Specification

For more information, visit the: Kwenta State Log