From 376f69f6ff419674307c3c658f9565c111062ba1 Mon Sep 17 00:00:00 2001 From: Genefaesius <145016859+Genefaesius@users.noreply.github.com> Date: Mon, 26 Aug 2024 15:06:39 +0200 Subject: [PATCH 1/5] Add files via upload --- content/sips/sip-405.md | 30 ++++++++++++++++++++++++++++++ 1 file changed, 30 insertions(+) create mode 100644 content/sips/sip-405.md diff --git a/content/sips/sip-405.md b/content/sips/sip-405.md new file mode 100644 index 000000000..1b5cf966d --- /dev/null +++ b/content/sips/sip-405.md @@ -0,0 +1,30 @@ +--- +sip: 405 +title: Temporarily Distribute fees to V2 stakers +network: Arbitrum, Base, Ethereum and Optimism +status: Draft +type: Governance +author: snxmaximalists.eth +proposal: >- + +--- + +## Simple Summary +After SIP 385, fees will no longer be used to buy back and burn SNX; instead, they will be sent to the treasury for later use. This proposal suggests redirecting the fees allocated to the Synthetix Treasury to the v2 FeePool. + +## Abstract +Building on the existing fee-sharing mechanism, this proposal redirects the fees sent to the Synthetix Treasury to be bridged, converted to sUSD, and deposited into the V2 FeePool. This approach ensures that the funds are effectively distributed to SNX stakers. + +## Motivation +By depositing the allocated fees into the FeePool, this proposal consolidates the funds in one location, simplifying the distribution process to SNX stakers and maintaining the integrity of the existing distribution system. While this may not be the most elegant solution, it should provide short-term benefits for stakers until a more permanent solution is implemented. + +## Specification +The fees allocated to the Synthetix Treasury from Perps v3 deployments across various chains will be bridged, swapped, and deposited into the v2 FeePool, depending on the needs of each specific deployment. + +This process will occur at a fixed, TC-proposed time once a week, ensuring all participants know what to expect. + +## Rationale +Consolidating and distributing the fees to SNX stakers ensures they receive their share, making staking more attractive. + +## Copyright +Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). From 49e50068baea6e936d881c7d0089a3cb67cb7a3c Mon Sep 17 00:00:00 2001 From: Genefaesius <145016859+Genefaesius@users.noreply.github.com> Date: Mon, 26 Aug 2024 16:43:55 +0200 Subject: [PATCH 2/5] Update sip-405.md --- content/sips/sip-405.md | 4 +++- 1 file changed, 3 insertions(+), 1 deletion(-) diff --git a/content/sips/sip-405.md b/content/sips/sip-405.md index 1b5cf966d..6ed764b1b 100644 --- a/content/sips/sip-405.md +++ b/content/sips/sip-405.md @@ -16,7 +16,9 @@ After SIP 385, fees will no longer be used to buy back and burn SNX; instead, th Building on the existing fee-sharing mechanism, this proposal redirects the fees sent to the Synthetix Treasury to be bridged, converted to sUSD, and deposited into the V2 FeePool. This approach ensures that the funds are effectively distributed to SNX stakers. ## Motivation -By depositing the allocated fees into the FeePool, this proposal consolidates the funds in one location, simplifying the distribution process to SNX stakers and maintaining the integrity of the existing distribution system. While this may not be the most elegant solution, it should provide short-term benefits for stakers until a more permanent solution is implemented. +By depositing the allocated fees into the FeePool, this proposal consolidates the funds in one location, simplifying the distribution process to SNX stakers and maintaining the integrity of the existing distribution system. By depositing it into the FeePool instead of burning it directly, we ensure that stakers receive one larger debt reduction rather than two smaller reductions if the TC were to burn the sUSD immediately. This approach streamlines the process for stakers. + +While this may not be the most elegant solution, it should provide short-term benefits for stakers until a more permanent solution is implemented after the migration. ## Specification The fees allocated to the Synthetix Treasury from Perps v3 deployments across various chains will be bridged, swapped, and deposited into the v2 FeePool, depending on the needs of each specific deployment. From edc60e218bdfb05582c4118fad447fb277573ec0 Mon Sep 17 00:00:00 2001 From: Genefaesius <145016859+Genefaesius@users.noreply.github.com> Date: Wed, 28 Aug 2024 22:55:00 +0200 Subject: [PATCH 3/5] Update sip-405.md --- content/sips/sip-405.md | 10 +++++----- 1 file changed, 5 insertions(+), 5 deletions(-) diff --git a/content/sips/sip-405.md b/content/sips/sip-405.md index 6ed764b1b..1c6be7196 100644 --- a/content/sips/sip-405.md +++ b/content/sips/sip-405.md @@ -10,23 +10,23 @@ proposal: >- --- ## Simple Summary -After SIP 385, fees will no longer be used to buy back and burn SNX; instead, they will be sent to the treasury for later use. This proposal suggests redirecting the fees allocated to the Synthetix Treasury to the v2 FeePool. +After SIP 385, fees will no longer be used to buy back and burn SNX; instead, they will be sent to the treasury for later use. This proposal suggests redirecting the fees allocated to the Synthetix Treasury to burning sUSD. ## Abstract -Building on the existing fee-sharing mechanism, this proposal redirects the fees sent to the Synthetix Treasury to be bridged, converted to sUSD, and deposited into the V2 FeePool. This approach ensures that the funds are effectively distributed to SNX stakers. +Building on the existing fee-sharing mechanism, this proposal redirects the fees sent to the Synthetix Treasury to be bridged, converted to sUSD, and burned. This approach ensures that the sUSD is effectively removed from circulation, benefiting SNX stakers through debt reduction. ## Motivation -By depositing the allocated fees into the FeePool, this proposal consolidates the funds in one location, simplifying the distribution process to SNX stakers and maintaining the integrity of the existing distribution system. By depositing it into the FeePool instead of burning it directly, we ensure that stakers receive one larger debt reduction rather than two smaller reductions if the TC were to burn the sUSD immediately. This approach streamlines the process for stakers. +Yields for SNX stakers are currently very low. By using the fees collected on Base and Arbitrum to burn sUSD debt, we have an easy and quick way to temporarily boost yields. This approach is much more beneficial to stakers than leaving the fees in the treasury. Burning the sUSD provides SNX stakers with an immediate pro-rata debt reduction to their sUSD debt. While this may not be the most elegant solution, it should provide short-term benefits for stakers until a more permanent solution is implemented after the migration. ## Specification -The fees allocated to the Synthetix Treasury from Perps v3 deployments across various chains will be bridged, swapped, and deposited into the v2 FeePool, depending on the needs of each specific deployment. +The fees allocated to the Synthetix Treasury from Perps v3 deployments across various chains will be bridged, swapped into sUSD, and burned, depending on the needs of each specific deployment. This process will occur at a fixed, TC-proposed time once a week, ensuring all participants know what to expect. ## Rationale -Consolidating and distributing the fees to SNX stakers ensures they receive their share, making staking more attractive. +Burning the sUSD benefits for SNX stakers, making staking more attractive by providing an immediate debt reduction. Letting them benefit from the new v3 deployments ## Copyright Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). From 05f851093b1b9a864e025215214f487e1fe6eb18 Mon Sep 17 00:00:00 2001 From: Genefaesius <145016859+Genefaesius@users.noreply.github.com> Date: Wed, 28 Aug 2024 23:01:48 +0200 Subject: [PATCH 4/5] Update sip-405.md From 49b94bc76ee7e063dcbabcaa9423533ee8339724 Mon Sep 17 00:00:00 2001 From: Genefaesius <145016859+Genefaesius@users.noreply.github.com> Date: Wed, 28 Aug 2024 23:05:36 +0200 Subject: [PATCH 5/5] Update sip-405.md --- content/sips/sip-405.md | 2 -- 1 file changed, 2 deletions(-) diff --git a/content/sips/sip-405.md b/content/sips/sip-405.md index 1c6be7196..455f66bfb 100644 --- a/content/sips/sip-405.md +++ b/content/sips/sip-405.md @@ -5,8 +5,6 @@ network: Arbitrum, Base, Ethereum and Optimism status: Draft type: Governance author: snxmaximalists.eth -proposal: >- - --- ## Simple Summary