SIP 9: Change Fee Claim Window To One Period Source

AuthorKain Warwick, Clinton Ennis, Jackson Chan
Discussions-Tohttps://discord.gg/TK5Vt4h
StatusWIP
Created2019-07-16

Simple Summary

This SIP changes the fee period claimable to one fee period, which aims to address current issues with fees rollover and a providing a clear strategy for stakers in regards to how often they should claim their rewards. Reducing the fee period claimable to one period also reduces the complexity and reduces the gas cost of claiming fees for stakers.

Abstract

The current fee claim window of two periods creates ambiguity about the fee rollover mechanism and was scheduled to be resolved by making fee claimable only in one period before they rollover. The period duration is configurable by setting the fee period duration and can be adjusted to two weeks based on community feedback and responsiveness. Also reducing fee periods to one period is necessary to increase the responsiveness of minters to the incentives within the system. Due to the way fees are currently claimed, and the way unclaimed fees rollover there needs to be at least two fee periods worth of fees unclaimed before fees begin to rollover and be claimable. This SIP aims to fix the fee rollover issue as described in SIP-4.

There are concerns in the community that 1 week is too short of a period and too regular to be able to claim in case people are “away from crypto”. We have provided the ability for automated bots or mobile/ hot wallets to call claimOnBehalf of your cold storage wallet. Please see https://github.com/Synthetixio/synthetix/blob/v2.11.2/contracts/FeePool.sol#L342

Motivation

There are currently several SCCPs proposed to increase the incentives in the system to ensure the sUSD peg is maintained. The reason for this is that a user is not sufficiently motivated to adjust their c ratio when they can wait for either the SNX price to rise in a later fee period or wait until their fees are about to expire before adjusting their ratio.

Another loophole in the rewards to close is the act of aquiring SNX before the close of the fee period, minting to max then burning all and selling all SNX. Repeating this process means this bad acter is gaining risk free SNX rewards without supplying any value to the system. This implementation would change to account for a minter being present with debt for the entire fee period window.

Test Cases

Implementation

Copyright and related rights waived via CC0.