KIP-110: Fees to stakers and buying SNX

Simple Summary

This KIP proposes a 3 step solution for managing USDC earned on Base, beginning with the establishment of a multisig vault controlled by the Kwenta TreasuryDAO to temporarily hold USDC earned from the Synthetix Perps v3 integration on Base.

It also suggests the development of an automated system for bridging USDC from Base to Optimism and enabling $KWENTA stakers to claim USDC rewards in proportion to their staked balance on Optimism in Staking v2.

Finally, the proposal suggests an upgradable fee split on Base allowing the Kwenta Council to direct a % of fees directly from the contract which receives Kwenta’s USDC, initially set at 20% directed toward the treasury for the purpose of buying and staking SNX.

Abstract

The proposal includes the following key components:

1. Multisig Vault Setup: A multisig vault will be established and controlled by the Kwenta TreasuryDAO to hold USDC earnings from the Perps v3 integration on Base.
2. Automated Bridging: Development of an automated system to bridge USDC from Base to Optimism, ensuring efficient and secure transfer of funds.
3. USDC Rewards for Stakers: Implementation of a mechanism for $KWENTA stakers on Optimism in Staking v2 to claim their share of USDC rewards, proportional to their staked balance.
4. Allocation of USDC for SNX Purchase: Before bridging to Optimism, 80% of the USDC will be allocated to stakers, and 20% will be used to buy SNX on Base. The purchased SNX will be staked and managed by the treasury for active participation in SNX governance.

Motivation

The motivation behind this proposal is to maximize the benefits of the Synthetix Perps v3 integration for the Kwenta community. By efficiently managing the USDC earnings, the proposal aims to reward $KWENTA stakers and strengthen Kwenta's involvement in SNX governance, thereby aligning with the broader goals of the Synthetix ecosystem.

Specification

For more information, visit the: Kwenta State Log