GM Hedgehogs, I hope everyone is doing well. dHEDGE and Toros are continuing to build and innovate during this bear market.
We have some exciting news around DHT Staking. The dHEDGE core contributors have been brainstorming and modelling to improve staking and are excited to share the details.
We will have this up for discussion before putting it through a formal DFP governance proposal.
DHT Staking is being rejuvenated and improved to closer align staking rewards with healthy protocol objectives
Currently, DHT is emitted to stakers through one of two methods:
As direct incentive for staking DHT, proportional to the allocation of vDHT held via a lockup calculation, and
Via performance mining - a method that rewards investing in well performing pools. Investors are eligible for a max of 100 DHT a month rewards without any DHT staked; however with staked DHT these rewards increase.
Proposed is to:
Simplify the method of accruing voting power via accruing a staker’s vDHT linearly over time, starting at 0… vDHT accrues to parity with the staked DHT after 12 months.
Only emit DHT rewards to users staking both DHT and pool tokens. Staking DHT alone will not be subject to staking rewards. Rewards are emitted when staked DHT (vDHT) is paired with some staked dHEDGE pool tokens.
The amount of rewards a staked (vDHT, DHPT) pair receives varies with two factors: the amount of time the pair has been staked for (Duration Bonus), and the investing return that pool has returned since being staked (Performance Bonus)
The Duration Bonus is a linearly increasing factor from 0 to 1, which increases with time until maxing out at 6 months
The Performance Bonus is a linearly increasing factor from 0 to 1, which increases with the returns of a pool performance. This maxes out if/when a pool achieves 100% returns. (e.g. 10% pool performance = a Performance Bonus of 0.1
The effect of these changes will:
- Improve the utility of DHT token as a method of boosting investing returns
- Simplify the earning of governance power
- Increase the attractiveness of holding DHT to increase investing returns
In addition it is proposed that staking of DHT move away from Ethereum mainnet to both Polygon and Optimism.
For a more in depth explanation with an example go to: New DHT Staking - in depth explanation - Google Docs
Looking forward to all thoughts and feedback.