Staking system propossal

rwalls · September 13, 2022, 7:17pm

Hello Community,

On many occasions, several members of the community have commented that it would be great to stake with UDT.

We currently have a large number loyal to the project holding their tokens.

I think it would be a good incentive for them to create a staking system that can favor members who hold their tokens and reward them in some way.

github.com

OriginProtocol/origin-dollar/blob/master/contracts/contracts/staking/SingleAssetStaking.sol

// SPDX-License-Identifier: agpl-3.0
pragma solidity ^0.8.0;

import { IERC20 } from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
import { SafeMath } from "@openzeppelin/contracts/utils/math/SafeMath.sol";
import { SafeERC20 } from "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";

import { Initializable } from "../utils/Initializable.sol";
import { Governable } from "../governance/Governable.sol";
import { StableMath } from "../utils/StableMath.sol";

contract SingleAssetStaking is Initializable, Governable {
    using SafeMath for uint256;
    using StableMath for uint256;
    using SafeERC20 for IERC20;

    /* ========== STATE VARIABLES ========== */

    IERC20 public stakingToken; // this is both the staking and rewards

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The OGN system is a system that we could take as a reference and apply it in our protocol to offer staking.

This post has the intention that more members collaborate and we put out a formal and organized proposal with all the details to launch the staking system.

Thanks!!

julien · September 13, 2022, 7:29pm

Thanks for the proposal! Can you clarify what staking would do? What is the purpose. I get that it would reward token holders, but for what?

Usually when people use staking it’s not to reward but to provide an incentive to do something: securing the protocol, providing liquidity… etc.

rwalls · September 14, 2022, 12:47pm

Hi Julien,

I think the best way to create a staking system is to provide network secure incetivation, in this case is not currently possible but we can make something like this :
Content nodes: Content nodes will allow to creators (events, private channels etc) to be created in a decentralized way and be stored (UnlockST for example) that will be an extension of IPFS. In this way unlock will provide a highly available, independtly verifiable and dencetralized membership sharing system. Content hosting will be incentivated throught a stake-based incentive structure.

Content nodes can be also hosted by the own creator deciding with memberships who can access to the content and how this is displayed.

Users will be able to discover content depending on a condition being met via memberships.
With that we will trully enable a decentralized protocol and making easy to built in a decentralized way too

The creation of nodes and the maintenance will be throught UDT.

jrsec · September 20, 2022, 2:49pm

That’s definetly a great idea @rwalls ! Some web 3 protocols such as livepeer/audius do similar things, i think it can be a cool feature for the protocol!

David-Moderator · September 24, 2022, 7:03am

Hello everyone!

Thank you @rwalls for launching this initiative in which we can all contribute our opinion.

I think it’s a fantastic idea that Unlock should provide to its users.

Hope that the people of the community participate and together we can shape the idea to later use the DAO.

Have a nice day

patrickworkman · September 26, 2022, 2:20pm

Thanks for being proactive and submitting a proposal!

The most valuable interaction with Unlock Protocol is a key (NFT) being purchased. How does this staking mechanism create an incentive to increase the number of keys being purchased or locks being deployed?

rwalls · September 26, 2022, 5:15pm

Thats the beautiful part of unlock! More use cases that we create for the token more locks that we can implement. In this case we can implement locks for the staking where the users need to pay a “fee” for staking all their tokens so they will have a monthly key to stake or use the content nodes that i named before. All those fees can go back to the dao increasing the treasury of it

patrickworkman · September 26, 2022, 5:55pm

I appreciate your explaination and agree we need to broadly inspire more use cases for tokens (non-fungible & fungible).

What’s the correlation between staked UDT and additional keys being created?

Why would users (who I assume are UDT holders in your example?) pay a fee to stake their tokens and how does this incentive increase key creation volume?

rwalls · September 27, 2022, 10:43am

The correlation is an user get suscribed to a service, in this case staking.

All users (or most of them) already pay hidden fees in their ‘subscriptions’ to staking. For example, pancakeswap you can stake and earn tokens in their platform but at the end when you withdraw there is a ‘tax’ for it (that it can change). With a subscription you will pay a fixed amount that you will know upfront and then 0 fees per withdraw.
Every time that someone starts to stake it will create a new key (monthly key) to withdraw the tokens, so we will have lot of key emission. Also this model provide some innovative factors:

→ Staking subscription: You can control all your stakings in a single dashboard (if you use other staking platforms you can control them just checking all your subscriptions to them) also you can offer this service to other projects that they can implement unlock for subscriptions.
→ Additional services: As the person that is staking is already a person that subscribed to the service you can provide additional ‘special services’ for them, such as technical support, special dashboards, additional token features, fees sharing etc.
→ Sustainable: Enabling a model of subscriptions generate a permanent fee for the protocol that can be used for burning, treasury or other usecases that gives a long term economic model to the project.

patrickworkman · September 29, 2022, 12:14am

Thanks for the details.

In your example, what is the subscribtion to? If the subscription is staking, what is the incentive?

Is the platform you’re envisioning Unlock’s Creator Dashboard or something that hasn’t been built? If the later, please share examples of similar platforms for review!

rwalls · September 29, 2022, 8:29am

Thanks Patrick!

The incentive is the staking itself +(additional features that you can add to the subscriptor!). For example, let’s use a real world example. You have your netflix account, your netflix account (that you are subscribed to their service) provide you access to different content. Amazon provide you different access to content and also no fees when you receive something from their mailing.
So how that can work at crypto? You suscribe to the staking of unlock (you can farm unlock and also other tokens / control them in a same dashboard) imagine that instead of stranger things, the walking dead you see your different stakes between different chains/platforms (apys, how much are you staking etc) and also you can farm in other tokens too there (maybe partnering with curve or any other similar platform).
Inside this 'netflix (aka crypto platform) you can also suscribe to other tokens (that the original team will receive the inflow fees) and they can also provide their stakes or dev help services whatever they decide (basically it will be a massive platform where projects can enable subscriptions → crypto services [dev,stake etc].