I like this, this idea I believe brings the best balance while remaining productive to the protocol
I personally find it to complex. If I stake NDX, I dont want LP token. I want (more) NDX or a stable token (DAI) or the native network token (ETH).
āKeep it simple, stupidā and āIf it aināt broke, donāt fix it.ā I think the tradfi dividend model works fine in crypto too: cash dividends with an auto-reinvest option.
When I buy a dividend stock, I can choose whether I want to receive the dividends in cash, or to have those dividends reinvested automatically.
Bringing the analogy to NDX, if I stake my NDX, Iād like to see the dividend in immediately liquid cash (DAI), with the option to automatically reinvest into NDX for longer term investment strategies.
5 Likes
@MrThx
It isnāt really complex, itās 1 extra step. You simply add your NDX to uniLP first. This is more gas yes but it also acts as a deterrent to dump yields and softens the dumps by added liquidity (which now is quite low).
@ABIPUP This isnāt much different, just a blend of eth(cash) and re-investment.
The main advantage of my proposal is that it helps support price stability and liquidity of NDX.
Itās also a bit more ānovelā of an approach which might give it some appeal.
I support the proposal and suggest we use $NDX as the payment token. This will create a feedback loop imo where users want to stake $NDX to earn $NDX and re-stake that $NDX to earn even more.
Similar to how ETH 2.0 staking solidifies the tokenomics of $ETH.
4 Likes
Iām not convinced that the majority of NDX stakers would a) only want more NDX/ETH, or b) want to go thru the rigamarole of unwrapping an LP token into more useable liquidity.
If our goal is to ātrapā stakers into the NDX ecosystem, āwalled gardenā style, then rewarding with NDX/ETH LP token is the way to go.
If youād prefer to give that control up to allow the individual stakers more easily decide what to do with their rewards, direct DAI payment is the way to go.
I am in favour of dividends being paid in NDX. I
personally will want to stake NDX further and thereby stabilise the indexes and protocol.
Iām in favour of being paid in NDX for simplicity
I think I might pick ETH/NDX uniLP token, if the gas price is reasonable. Now the gas price would probably make same smaller positions not worth the effort
Given what the reality is, I would vote for the payout being NDX token, following up with a suggestion of an additional āLock Reward Functionā. Once it is called there will be no more early withdrawal, but this option allows compounding the reward. It would be appealing, given that the maximum lock duration wonāt be too long
I think this is great and moves the value capture for NDX in the right direction. Similar mechanism to xSushi or iFARM.
I would prefer to have rewards be paid out in NDX.
I also think a huge benefit of this if designed correctly would be to be able to leverage dNDX as collateral on other platforms to increase the efficiency of the capital invested in the NDX platform. I would like to see that be part of the official proposal.
Great work on this!
Adding my opinion here that Iām in favor of the rewards being paid in NDX.
We have an opportunity here to generate buy pressure on NDX with no downside, it would be silly to pay out in DAI and miss out on that.
More buy pressure on NDX is healthy for the platform, people are more willing to hold, lock and vote with the token if they know that the buybacks are helping prevent their locked funds from bleeding value. A higher NDX value also promotes more decentralization in governance (harder to own a large portion) and a higher NDX value means itās more powerful as an incentive, thus drawing in more TVL/users.
Furthermore, if the payout is in DAI (or other ERC20), the NDX from early withdraw fees will be sold for that other token. Why would we want to dump NDX on the NDX supporters? That creates an environment that drives people away. People donāt want to lock up tokens that will be dumped on themā¦
So not only is it beneficial to pay out in NDX, itās a negative to pay out in anything else. Big vote from me for NDX as the payout.
1 Like
I agree, rewards should be in NDX, and there should be an āauto-compoundā option to pay a one time fee to restate all earned rewards into dividend earning position. Like xRuler or xSushi.
I think it should be paid out in NDX and people can make their own choice whether to sell or hodl NDX long-term. I am also wondering if the rewards can be auto-compounded into dNDX?
This is an interesting idea. Not sure how complex it is to implement though.
In the interests of actually putting forth some figures for the DAO to vote on in the Snapshot determining the dNDX configuration parameters [and I suggest others do the same - these are my own preferences]:
Minimum/Maximum Lock Duration: 90 - 360 days
Maximum Bonus Multiplier: 2.5x
Maximum Early Withdrawal Fee: 50%
Dividends Payment Token: NDX
Minimum Deposit: 50 NDX [adjustable by DAO]
Minimum/Maximum Lock Duration: 90 - 360 days
Maximum Bonus Multiplier: 2.5x
Maximum Early Withdrawal Fee: 75%
Dividends Payment Token: UNIv2LP or SLP (NDX:ETH)
Minimum Deposit: 50 NDX [adjustable by DAO]
Thatās an amazing proposal that will add value to NDX.
Does that mean that we cannot let the staker decide which token he wants to get rewarded with? Like in finance we can choose between cash distribution dividend (ie. DAI in our case) or reinvesting (NDX). It would be good to have this option too, then if itās not possible I would prefer the NDX rewards for the explanation described in the previous comments (virtuous circle for NDX ecosystem, enabling auto-compound).
Does that mean that we cannot let the staker decide which token he wants to get rewarded with?
Correct. This is a one-off decision that fixes the revenue token in stone.
We must pick Eth or DAI it is the only decision with predictable consequences.
Youāre welcome to vote that way when the Snapshot comes out 