LGP #1: Distribute Liquid Locker bribes in sdBAL if the pool sdBAL:BAL LP peg is below 1:0.99

Summary:

This proposal aims to allow the sdBAL gauge holders to receive bribes in sdBAL rather than SDT when the sdBAL:BAL LP peg is below 1:0.99 in the corresponding pool.

Context:

Stake DAO has been distributing bi-monthly bribes based on sdBAL voting powers for months now. Currently, the claim bribes are sold against SDT and then distributed to sdBAL-gauge holders who are eligible for bribes.

The motivation behind this proposal is to use the bribes as an additional tool to support the sdBAL peg. In practice, whenever an sdBAL peg would be below 1:0.99, the bribe distribution token would be sdBAL (acquired from the market).This new system should considerably help to stabilize the peg of the sdBAL towards 1:1 in the long run and will increase the attractivity of the Liquid Lockers as a whole.

That way, when an sdBAL peg is healthy, bribes support SDT price, inviting users to lock SDT. When a peg is unhealthy, bribes are supporting it. This system directs users to the healthiest and most interesting solution for them.

Means: Human resources: Minimal developer time needed Treasury resources: No treasury resources needed

Technical Implementation: Add a merkle tree for sdBAL in the bribe distributions

Proposal specifications: Admin: sdBAL holders Community feedback: 2 days minimum Voting Duration: 5 days