XP-6: Mimicking staking returns for rXTK holders

XP-5 explored the potential options for rXTK staking. Please review that proposal for more context on the following proposal.

We’d like to offer rXTK holders an opportunity to earn similar returns to stakers in our xToken Management staking module (xXTKa). Given the complexities of directly connecting rXTK to xXTKa, we propose a periodic manual distribution into the rXTK contract that will simulate XTK staking returns.

We will have four distribution checkpoints:

  • September 27, 2021
  • January 27, 2022
  • May 27, 2022 (1 year since May rXTK deployment)
  • September 2, 2022 (1 year since September rXTK deployment)

The formula for determining the number of XTK to distribute to the contract is as follows:

  • XTK to distribute = Number of XTK in rXTK contract * Current APR on staking * Number of active days since last distribution / 365 * 1.05

As an example, for the September 2021 distribution on the May rXTK deployment, the formula would be:
XTK to distribute = 21.89m * 55% * 64 / 365 * 1.05 = 2.217m XTK

Key Notes:

  • The number of active days variable will either be the number of days since previous distribution or the number of days since xXTKa went live. Since xXTKa went live in July, the September distribution will only pay out XTK owed based on time since staking launched.
  • We gross up the total amount by 5% at the end of the formula because we assume that APR will be declining moderately over time as more supply enters the market and more XTK are staked. Therefore, we would feel that simply taking the APR at distribution time would result in an under-payment to rXTK holders, so we increase the distribution slightly to account for this.

Addresses:

  • rXTK LPs May '21: 0xB913C7856A0CB9b93616215401aa806EF5f5dA0c
  • rXTK Vanilla xSNXa May '21: 0x9FfD84E656F5CECff1E9Ca77c7eF23C9EB5c3Ea0
  • rXTK August '21: 0xaCdf93cA5b891dF3BaBd5760f2115318aE7907A2
6 Likes

Would this be opt in or automatic?

Gas to opt in if so?

Would early claiming going forward of rxtk1 or rxtk2 result in calcuable forfeiture? If so, will that be presented or left to user to calculate?

Would rxtk 1 be locked longer if there is also rxtk 2 on same account?

Not sure what you mean by opt-in? You can always redeem your rXTK and opt out of the process.

We are dropping XTK into the contract. No extra burden on rXTK holders.

Everything about the mechanics of rXTK remain the same. But redeemable will go up when we distribute

2 Likes

I’m all for this proposal!

Looks good and fair.

I support this proposal!

Nice to see there’s some momentum to carry this proposal forward. I’m happy with the implementation as written.

Thanks for clarifying that no txs by rXTK holders would be required to benefit from this proposal. I support this proposal passing.