Snapshot Proposal: Converting tSYNO to vlSYNO

Update: We have decided to proceed with the following proposal, after thorough discussion in the community.

Tldr: tSYNO stakers get an option to convert to vlSYNO 6M or 12M lock. tSYNO stakers will have to provide 20% ETH to convert to vlSYNO (SYNO:wETH 80:20 BPT). Users can only convert full amount into vlSYNO. rCT stakers will be able to keep rCT token indefinitely after the conversion, unless another governance proposal is proposed. Introduction: We are continuously seeking ways to enhance the overall economics of Synonym, align all stakeholders towards positive protocol growth, improve token distribution, and create value. Following our merger and the creation of tSYNO, a significant amount of tSYNO token value remains dormant and isn’t generating as much value as it could for Synonym Finance.Therefore we would like to request feedback for the following proposal.

Objective of the proposal: To give tSYNO holders a better alignment with the protocol and reward them for their participation. This option allows tSYNO holders to start generating more value earlier rather than waiting for their unlock timeline to complete. The proposal provides tSYNO holders the ability to convert to vlSYNO early, generate more rewards, and contribute to improved on-chain liquidity for our SYNO/wETH pair.

Current Structure: tSYNO holders can stake rCT and receive 50% of the yield from treasury-generating assets from NEWO. If tSYNO is unstaked, rCT is burned.

Proposed Structure: Option to convert tSYNO into vlSYNO. Current burn timeline for tSYNO: 68% over 11.5 months. New option: Convert tSYNO into vlSYNO with a 6-month lock period, offering benefits over the current 12-month unstake period. Users must provide 20% in ETH to convert. Users can also choose a 12-month lock for vlSYNO period if desired as they will be getting more vlSYNO BIPS & higher vlSYNO APY. Benefits:

Higher rewards: vlSYNO offers an APY between 1.51% to 18.85%, compared to tSYNO’s 0.4%. Note: If tSYNO APY exceeds the vlSYNO APY, a governance proposal will be initiated to address the discrepancy. Improved on-chain liquidity for the SYNO/wETH pair. Protocol alignment with vlSYNO BIPS that are activated if once the user participates in money market. rCT Tokens:

The structure remains the same: rCT stays with users who convert tSYNO to vlSYNO. Users who fully convert tSYNO to vlSYNO keep rCT indefinitely or until a new governance proposal. Note:

Conversion from tSYNO to vlSYNO is optional and will not be done automatically. We believe broader conversion to vlSYNO will benefit the protocol and reward our earliest supporters. Users can only convert their full position into vlSYNO or fully remain in tSYNO. Partial conversion will not be feasible technically. Timeline: June 21st - June 23rd 2024 | Snapshot vote. Implementation by mid July. Conclusion: This proposal aims to engage and reward tSYNO holders by offering a better value proposition through converting to vlSYNO. This change will also enhance the protocol’s liquidity and align interests more closely with the protocol’s goals of building TVL & liquidity.

Feel free to make your selection on Snapshot. Only tSYNO stakers or vlSYNO lockers can participate in governance.