[MP-2] staking length

Official Merit Polls (MPs) are a way to get direction on new MIPs. Some MIPs have a high degree of complexity and/or importance, these will be guided by official polls. By running these polls, we can get better input for the various variables that need to go into the official MIPs. The outcome of polls will not have any direct or permanent implications; they will only form input to the MIP drafts. Only a Merit Improvement Proposal (MIP) that is voted in will have direct implications for the DAO. The voting weight is the same as with MIPs; MC, MC/ETH, sMC and sMC/ETH are eligible to vote with the largest weight to sMC/ETH and the lowest weight to unstaked $MC.

Title
Choice of LP staking length in the new staking v2 module

Authors

  • Merit Circle Core Contributors

Summary
Second official poll for the staking v2 discussion. See first poll results here:
https://vote.meritcircle.io/#/proposal/0xbd4b35e7ef4fa6aa3d354084a6c6cde2db9f4f029554169357faf3690c3bdef4

A discussion that should ultimately lead to a MIP that outlines the design and execution the new staking v2 module.

Main discussion topic:

Relevant information:
Poll 1 decided the main LP pairing asset should be USDC. Meaning the LP pool will be MC/USDC.

The pool will be an Uniswap v2 or v3 pool on Ethereum. The pool will have a ratio of minimally 50% MC and maximally 90% MC (vs 50% to 10% of the pairing asset).

The current pool is a MC/ETH 50/50 Uniswap v2 pool. The old pool is phased out, current v1 stakers do not have to worry. They will receive similar relative proportional rewards, until the last staker is unlocked (1Y from new pool launch).

The new pool will accrue the majority of the dividends and subsidies the protocol will attribute to stakers (currently 80%). The pool will exist next to a single staking $MC pool, that also receives part of these staking rewards (currently 20%).

The LP stake can be locked for 0-48 months. The longer the lock, the higher the rewards for the staker. The bonus multiplier will be either linearly or exponentially.

LP tokens will retain a similar voting weight as they have currently in the V1 system.

Locked stakers could also get secondary benefits, such as airdrops from (partner) games or platform fee discounts.

Poll
How long should people be able to lock their assets ($MC/USDC and $MC) in the staking v2 module?

You can vote here:
https://vote.meritcircle.io/#/proposal/0x64a669acccf77471e8aee82ecbfdda431d4b487ca01e66b2cc4c1764b5ef97d0

Hello!

Nice to see further progress on this. Just a couple of questions for my clarification:

  1. Are we voting on the length for both the LP pool and the MC single sided staking pool? The header in the vote reads “[MP-2] LP staking length in the new staking v2 module”, whilst the question also refers refers to the lock of MC only. Also the description writes that the LP stake can be locked for 0-48 months, but does not mention single sided staking in that respect.

  2. Noted that current v1 stakers should not have to worry and trust that you will handle this transition smoothly. It is however somewhat unclear to me how a staker that is currently locked beyond the date on which staking v2 will go live will be handled. Will a 12 month staker be treated as a 24, or 48 month staker in the period until staking v1 ceases, or the same as a 12 month staker under staking v2?

Many thanks!

  1. Are we voting on the length for both the LP pool and the MC single sided staking pool? The header in the vote reads “[MP-2] LP staking length in the new staking v2 module”, whilst the question also refers refers to the lock of MC only. Also the description writes that the LP stake can be locked for 0-48 months, but does not mention single sided staking in that respect.

Excellent questions. I think the poll question clarifies this first question, but I agree that the MP title formulation could have been clearer. To clarify: this is for both pools. The LP pool and the single sided MC staking pool.

  1. Noted that current v1 stakers should not have to worry and trust that you will handle this transition smoothly. It is however somewhat unclear to me how a staker that is currently locked beyond the date on which staking v2 will go live. Will a 12 month staker be treated as a 24, or 48 month staker in the period until staking v1 ceases, or the same as a 12 month staker under staking v2?

This is something that is being discussed currently and there are some technical feasibility considerations. There are a few possibilities. One possibility is it will be treated as a 12M v2 staker with a relative bonus compared to 12M v2 staking, to compensate for the fact that the staker did not have a 12M+ option at the time of staking. So somewhere in between.

Another option is that we give v1 stakers the option to signal for lengthening their locks beyond 12 months, after which they will get an adjusted bonus upon retsaking in v2 from the same account. This has some technical and practical challenges tho.

There are a few other options that are being contemplated by the development team.

In v2 we also want to make any accrued locking bonus wear off the moment a lock ends. So when that happens, the flexible APR applies until a stake is relocked.

2 Likes

Thanks tommyq.
Am glad you are thinking of a way for v1 stakers who staked way beyond v1 ending to benefit in the v2 staking.
Eager to see what you come up with. But thanks for considering it. very much required.

Totally agree with this.

1 Like

Thanks for the clarifications.

Understood re. question no. 2. Naturally there are multiple ways to handle this and I look forward to some more clarity on the matter. If I were to buy additional MC today which I want to stake for a maximum lock-up of 12 months until v2 goes live, it might be unfortunate if I am excluded from participating in the maximum (or even higher than 12 months) rewards scheme under staking v2, at least until the tokens are unlocked on 16 May 2023 (assuming I staked for 12 months today).

1 Like