I’d like to see if there would be some interest in the community for a single-token staking contract.
The pitch goes like this :
The protocol distributes rewards for staking Uniswap FEI-TRIBE LP tokens, but what if you have only FEI, only TRIBE, or both of them but not in a 50/50 proportion ? Now, you can stake your tokens and benefit from the >50% APY offered by the protocol’s staking rewards, regardless of how much of each token you own.
Sounds good ?
I propose to implement such a contract, and I’ll try to describe the advantages & inconvenients of it.
Without changes to the protocol, there is no way around it : liquidity has to be provided in the FEI-TRIBE Uniswap pool, and the LP tokens have to be staked in the
SingleTokenStaking contract will act like a “zapper” : when you provide a token, half of it will be converted to the other token, it will provide liquidity to Uniswap, and it will stake the LP tokens to collect rewards.
When you want to cash out, the “zapper” will work in reverse : some LP tokens are unstaked, liquidity will be withdrawn from the Uniswap pool, and all the tokens will be swapped to give you only the token you want.
At any moment, anybody can ask the
SingleTokenStaking contract to claim the staking TRIBE rewards, have half of it swapped to FEI, and have it provided as liquidity on Uniswap & then staked to collect moar TRIBE staking rewards.
- Big APY staking for FEI
- Big APY staking for TRIBE
- More liquidity in the FEI-TRIBE pool
- The compounding acts like a Yearn vault or Pickle jar, but whithout the PICKLE token rewards, and without getting shaved off 20% of your TRIBE staking rewards.
- The compounding probably don’t need to be called more than once a week : for a base APY of 50%, compounding daily will make it 64.82% APY, while compounding weekly will make it 64.48%…
- I’d keep a small part of the TRIBE rewards to get ETH to pay for the gas fees, but it would be dwarfed by the added benefits.
- Alternatively, the core team could be interested in making this contract part of the protocol, and we could have FEI rewards for making the compounding call (like for reweights). In that case, there would be no need for a small fee.
- You are exposed to impermanent loss
- should be largely compensated by staking rewards
- You could have some up/downside by staking FEI
- You could miss some upside on the TRIBE token (but will be less impacted by downside)
I initially considered a TRIBE-only staking contract & have the protocol mint an equal amount of FEI to provide liquidity, but then it raises so many questions, like : what do we do of the TRIBE tokens earned by the protocol’s FEI ? And should the protocol experience some downside if the value of TRIBE decrease ? I also like the proposed solution better, because it has less interactions with the core protocol.
- I like it
- I like it, but… (comment)