In defining LP staking parameters, the Pilot League has asked the community to express through a snapvote their preference about the rewards, with the reward funds coming from the Ecosystem Fund.
The poll results show that Governance approved a 1000 $IDLE/day issuing rate, which represents a program budget equal to 180,000 $IDLE.
Governance voted to use the Ampleforth geyser model for LP staking deployment, with $SUSHI rewards allocated for protocol’s growth.
Furthermore, the Pilot League has to manage operational costs, staking contract deployments, and reimbursements, thus there is a need for an ETH withdrawal from the FeeTreasury to handle these expenses.
The Pilot League will manage LP staking reward funds, so the need is to transfer 180,000 $IDLE from Ecosystem Fund to the Pilot League Multisig Wallet, and 5 ETH withdrawn from FeeTreasury to the Pilot League Multisig Wallet.
With the implementation of LP staking rewards, we expect a significant increase in liquidity in the SushiSwap IDLE/WETH pool which will allow for larger trades and less slippage.
As an update of the LP staking progress here is where we are at so far.
Contract Code Written (Complete)
Staking UI (Complete)
Review & Testing (In progress)
We anticipate staking to be live by Monday (26th April).
Because the community overwhelmingly voted to allocate sushi rewards to the protocol, an intermediary contract was written by @william and myself to tokenise/wrap Sushi Swap LP tokens which are staked in the Sushi Swap Masterchef contract. The tokenised LP staked in MasterChef is used for compatibility with the token geyser. The new tokeniser contract will not require you to transmit additional transactions thanks to the permit pattern which is supported by SushiSwap LP tokens (You will however be asked to sign a message). This means you won’t have to spend additional gas on approval transactions . The contract code can be found here.
The end-end flow is for staking is:
Sushi LP Token (LP) → LP token staked in MasterChef, wrapped LP (wLP) token minted → wLP token is staked in geyser.
The end-end flow for unstaking is:
wLP token unstaked from geyser → IDLE rewards sent to user → wLP token burned, LP token unstaked from MasterChef and sent to user.
** NOTE: this process will be automated from the UI, so as a user you won’t have to worry about this detail.
As a preview of what the new staking UI looks like here (Thanks to @samster91). Staking Home Page