Since the community opted for a fairly standard LP staking program the Pilot League Committee decided that it can proceed with the implementation internally, without the need to set up a grant.
To gather all necessary information and make the process as smooth as possible the Pilot League Committee and the GYSR devs (@devin) had a conference call on the 31st of March.
After the group call, the goal now is to have all technical details sorted out by the end of the week and start implementation soon after. The lead developer for this internal implementation will be Pilot League Supervisor @8bitporkchop.
The Pilot League presents here the focal points of the GYSR implementation and, after a few days of discussion, the Committee plans to set up an off-chain snapvote to confirm the community decision.
Following the initial discussion (here), the community will be required to vote if the Pilot League Committee should:
- Proceed immediately with implementation using GYSR v1 protocol and then switch to v2 once it’s live and tested,
- wait for v2 (which will be available in around 2 months)
- or even build a LP staking implementation from scratch.
At this point, no final decision has been made and all three options are possible.
To help the IDLE community make an informed decision in case they choose to use the GYSR protocol, below are the key points from the group call between the Pilot League Committee and the GYSR developers:
In GYSRs V1, the $GYSR token acts as a multiplier during unstake events. Currently, V1 does not allow to disable the $GYSR multiplier feature. This could lead to a scenario where a user with large amounts of $GYSR can potentially take advantage of this mechanic and receive additional rewards in return. Since rewards are received from a shared pool, their gain would reduce the portion of rewards earned by other users. This kind of competitive environment for LPs is not ideal for the Idle ecosystem and the Pilot League is wary about the sustainability of this current model. Here are the details from GYSR whitepaper regarding how the multiplier is calculated.
An implementation with GYSR will generate a new revenue stream for IDLE because $GYSR tokens spent by LPs will be earned by the deployer of the GYSR contracts (Governance/League).
A migration from V1 to V2 is planned for mid-May but a more conservative timeline deployment for V2 can be 3 months from now. With this in mind, the Pilot League Committee proposes to set up a 3-month launch program in V1, and after deploying new contracts when V2 goes into production mode. Although migration from V1 to V2 is not mandatory, it’s highly recommended for Idle. Everything from V1 will continue to fully function, and also benefit from the webapp upgrade.
Currently, v1 was audited by a minor auditing firm, while v2 will be audited by a top-tier auditing firm.
Also, V2 will enable a competitive environment same as in V1, but it’s also possible to set up a more fair reward model. In V2 $GYSR will not compete for funds with other LPs, they are working on side use cases.
Since in phase 2 of the LP staking programme Idle will be using V2, LPs will be required to “unstake” from V1 and “stake” again on V2. Therefore idle liquidity providers are economically affected and have to be aware of these constraints and know that they will have to manually adjust to the upgrade.
Both in V1 and V2, it’s possible to send the funds only from the same address that deploys the LP staking contract. As the parameters might be adjusted during the program, the Pilot League proposes to transfer the final ownership approach after the deployment.
The LP staking program would be split into 2 phases instead of setting up the whole reward pot of ~180k $IDLE. Management through the League is sustainable, as the subDAO would manage ~90k $IDLE per period.
The Pilot League Committee is looking forward to listening to the feedback from the community in order to start the implementation .