Author(s): @TigrisOfGaul

Summary

If adopted, this proposal authorizes the protocol to allocate a portion of its treasury towards xStaking pools on an ongoing basis.

Abstract

This proposal seeks to authorize the protocol to allocate a portion of its treasury towards the distribution of reward tokens to xTAROT stakeholders via xStaking pools.

About xStaking

xStaking enables xTAROT holders to earn additional yield in other reward tokens, while continuing to be able to participate in Tarot governance and earn TAROT through the protocol fee distribution interlink.

For more information on xStaking:

• Tarot xStaking: Partner-Incentivized xTAROT Staking Pools

Motivation

An ongoing treasury allocation to xStaking pools creates an opportunity for xTAROT holders to earn yield in other reward tokens, such as bTAROT or tTokens, and allows the protocol to distribute these rewards from its treasury directly to xTAROT stakeholders, in addition to the 50% of protocol fees that are distributed in the form of TAROT. Following the conclusion of rewards for the inaugural xStaking tFTM rewards pool, an alternative source of xStaking rewards is strongly desired.

Specification

The changes we propose authorize the protocol to:

• Allocate protocol-held bTAROT and/or tTokens to xStaking pools

Up to 50,000 USDC in cumulative token value may be allocated from the protocol's treasury to xStaking pool rewards per 60-day period. The tokens for consideration in this allocation may include protocol-held bTAROT or tTokens.