LGP #1: Distribute Liquid Locker bribes in sdFXS if the pool sdFXS:FXS peg is below 1:0.99

Summary:

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

Context:

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

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

That way, when an sdFXS 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 sdFXS in the bribe distributions

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