Current staking rewards are:
10% for SGT solo 10% for vETH2 solo 15% for veth2-weth 15% SGT-eth 50% for vote escrow locked SGT-ETH - veSGT
Currently, the majority of our liquidity is from the veSGT stakers I reason SGT solo and vETH2 solo staking gave users a chance to acquire enough SGT to create veSGT and participate in governance. At >1mo since relaunch, anyone that wanted to regain governance participation after panic selling would've done it already.
Solo vETH2 staking also does not help the protocol be a liquid staking protocol with veth2 locked in the staking contract.
With the new CRV meta pool, veth2 can be solo staked into the liquidity pool as well.
I propose reducing solo staking rewards down from 10% to 0% to reduce downward sell pressure on SGT price and stop incentivizing holding. This reward scheme is also more in line with our peers at Lido and Stakewise that do not incentivize solo token holding.
Side effects: This may temporarily increase sell pressure but imo that’s a good thing since we want as little sell pressure possible after token migration concludes and large solo SGT holders can make new users wary.
For reference: Current Lido rewards are ~10% or less https://app.1inch.io/#/1/dao/pools?filter=LDO for LDO-ETH and LDO-stETH. Sub 5% for ETH-stETH on Curve
Rewards for Stakewise ETH-sETH pair is sub 20% We have 800% for the stable pair currently on curve.
Options: Keep it the same (10%), lower to 5%, lower to 2.5%, lower to 1%, lower to 0%