SCCP-89: Redirect iETH rewards to sETH Shorting Rewards

Author
Discussions-Tohttps://discord.gg/B3PtpY
StatusImplemented
Created2021-03-15

Simple Summary

Redirect current iETH 16K SNX incentives to sETH short incentives

Abstract

Now that traditional shorting mechanism is available with sETH shorts on kwenta.io/shorts, I propose to redirect the 16K SNX incentive from the weekly inflationary supply to the ShortingRewardssETH contract instead of the iETH Staking Rewards contract.

  • sDAO funded sETH Short incentives emmision ends on Friday, 2 April 2021 05:49:59.
  • ShortingRewardssETH currently has a duration of 4 weeks which needs to be updated to 7 days. This duration can only be modified at the end of the emission at the periodFinish on timestamp 1617342599
  • sDAO will fund a week of incentives at an increased APY to encourage shorters to move over from iETH to sETH shorts.

A single transaction by the protocolDAO to the RewardsDistribution contract to change distributions[1].address from 0x3f27c540ADaE3a9E8c875C61e3B970b559d7F65d to 0x12DC1273915A16ab8BD47bA7866B240c253e4c12

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Call RewardsDistribution.editRewardsDistriubtion() with these args

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Motivation

iETH Synths have upper and lower bounds and freeze when the price hits them. This requires the pDAO to manually reset the inverse synth. The protocol should not have manual maintenance or intervention and the new multi-collateral shorts achieve this with a shorting mechanism that is self maintaining also a rewards incentive mechanism that self enrolls and never needs to be reset, purged and redeployed. It is a much better mechanism for the protocol.

Since iETH is incentivised with SNX to help balance the debt pool there is currently an inflation funded incentive via a iETH StakingRewards contract. When iETH freezes and needs to be reset the process of resetting is massively cumbersome with many steps and room for human error.

These steps are;

  • Purge all iETH holders into sUSD
  • Recover sUSD from staking contract
  • Calculate all iETH┬ástakers iETH to sUSD conversion amounts
  • Disperse the sUSD back to all iETH owners
  • Deploy new iETH stakingRewards Contract
  • Update Dapps
  • Update Rewards Distribution to send SNX to new iETH StakingRewards contract

Copyright and related rights waived via CC0.