# SIP-60: New Escrow Contract & Migration

Author Implemented Governance Ethereum TBD TBD 2020-05-20

## Simple Summary

Migrate to a new more flexible SNX escrow contract that supports arbitrary vesting entry lengths, L2 escrow migration and account merging. Allow users to migrate to the new contract and then deprecate the existing reward escrow contract.

## Abstract

The current SNX RewardEscrow contract is limited only allowing the FeePool to escrow SNX rewards from the inflationary supply.

It was not designed to be used as a general purpose escrow contract. New requirements include adding arbitary length escrow entries to be created by anyone as well as supporting the new terminal inflation and migration from L1 to OVM L2.

This will require a migration of all escrowed SNX and escrow entries from the current RewardEscrow to new Reward Escrow V2 contract.

## Motivation

### Current limitations of the RewardEscrow contract

1. Only escrows SNX for 12 months.
2. Only FeePool has the authority to create escrow entries.
3. The escrow table checkAccountSchedule only supports returning up to 5 years of escrow entries from the initial inflationary supply.

### Desired features for a general SynthetixEscrow contract

1. Ability to add arbitrary escrow periods. e.g. 3 months to 2 years.
2. Public escrowing. Allows any EOA or any contract to escrow SNX. Allowing SNX to be escrowed for protocol contributors, investors and funds or contracts that escrow some sort of incentive similar to the Staking Rewards.
3. Update checkAccountSchedule to allow for terminal inflation and an unlimited escrow navigation through paging.
4. Ability for account merging of escrowed tokens at specific time windows for people to merge their balances - sip-13.
5. Ability to migrate escrowed SNX and vesting entries to L2 OVM. An internal contract (base:SynthetixBridgeToOptimism) to clear all entries for a user (during the initial deposit phase of L2 migration).
6. Enable passing of escrow entry ID to the escrow contract, to allow the Dapps to read escrow entries offline and manage vesting rather than iterating through each entry on-chain.

## Specification

### Migration

1. Synthetix contract will need to be upgraded to migrate the SNX from the old escrow contract to the new contract on chain.

2. Claiming rewards and vesting on the new contract will be blocked for users with existing vesting entries who haven't migrated their previous vesting entries.

3. Users with existing vesting entries on the old rewards escrow will need to migrate their vesting entries across to the new contract. The migration will read from the address's existing entries and copy them from the old escrow contract.

4. The gas cost of writing all of these vesting entries to the new contract could be as high as 0.5 ETH per address, given this the proposal is for low SNX balances of less than 1,000 escrowed SNX all vesting entries are wiped and any escrowed SNX for these addresses is immediately available to vest.

5. For balances over 1,000 SNX any vesting entries beyond 52 weeks will be rolled up into a single entry that is immediately available to be vested.

For the avoidance of doubt, there is no need to vest any escrowed SNX in order to migrate to the new escrow contract.

### L2 Escrow Migration

With the launch of L2 Staking for SNX on the OVM testnet, users will be able to migrate all their SNX and escrowed SNX to L2 for staking and rewards. The vesting entries will be copied onto the L2 reward escrow contract that mirrors the migration process.

1. The SynthetixBridgeToOptimism.depositAndMigrateEscrow() transaction will vest any escrowed SNX that can be vested and transfer the remaining totalEscrowedAccountBalance SNX amount from the Reward escrow contract into the deposit contract. The vesting entries on L1 reward escrow will be deleted for the address.

2. The L1 migration step is required for stakers to migrate to L2 their escrowed SNX (if they have escrowed SNX on the old escrow contract).

If the user has not migrated on L1 to the new escrow contract, the SynthetixBridgeToOptimism.depositAndMigrateEscrow() function will fail.

To prevent an address from migrating their SNX staking to L2 and then duplicating their vesting entries to the new Reward Escrow afterwards, migrateVestingSchedule() will fail if the address has already migrated to L2 first.

Fields migrated to L2 Reward Escrow:

    escrowedAccountBalance

And

struct VestingEntry {
uint64 endTime;
uint64 duration;
uint64 lastVested;
uint256 escrowAmount;
uint256 remainingAmount;
}

1. L2 migration is an irreversible action. Escrowed SNX on L2 will need to be vested on L2 first before withdrawing to L1.

### Account Merging

• Require all debt to be burned before account merging is open for a staker.
• Approve and record the recipient / destination address that will claim the new escrow SNX amount and vesting entries.
• The recipient address will sign a transaction to merge the escrowed SNX amount and add to their existing totalEscrowedAccountBalance balance and append the vesting entries to their vestingSchedules.

TBD

## Configurable Values (Via SCCP)

N/A

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