#3 - ETHFI DAO Proposal: Staking Contract Implementation

Protocol & Proposals
1

Proposal Summary

This proposal seeks approval for the deployment of a staking contract for ETHFI on Ethereum mainnet. The ETHFI staking mechanism aims to provide genuine utility by linking rewards to governance participation and effective balances in the ecosystem. The staking contract will include future incentives and voting capabilities with staked tokens.

Rationale

The objective of this proposal is to enhance user engagement and participation within the ETHFI ecosystem by:

  1. Future Incentives: The proposal includes plans for additional incentives in the future, ensuring ongoing engagement and rewards for long-term stakers
  2. Effective Balances: The points system takes into account balances held in supported DeFi integrations, encouraging users to explore and utilize various DeFi platforms.
  3. Enhanced Participation: By allowing users to stake ETHFI tokens, we create an additional layer of engagement within the ecosystem. This encourages token holders to actively participate rather than passively holding their tokens.
  4. Voting Rights: Staking enables users to vote with their staked tokens, increasing decentralized governance and ensuring that community members have a direct say in protocol decisions.

Details

Staking Contract

  • Deployment: Ethereum mainnet only (L2 integrations to be considered based on demand and success).
  • Staking Mechanism: Users can stake ETHFI tokens to earn ether.fi loyalty points. Earning incentives to be added over time.
  • Points Calculation:
    • Based on ETHFI Staked: Points are earned relative to the user’s effective balance.
    • Effective Balance: Balance can be held natively with weETH/eETH or within supported DeFi integrations. Supported DeFi integrations are represented on the ether.fi DeFi page or Liquid vaults page.
    • Points Boost: users receive 1.1x-2x boost on their loyalty points when staking ETHFI worth at least 10% of their total effective balance. For example, if you have a total effective weETH balance worth $1000 and you staked $1000 worth of ETHFI, you would receive a 2x boost to your loyalty points.
  • Price Basis: The price of ETHFI relative to ETH balance will be based on a 30-day trailing average.

Incentives and Benefits

  • Current Incentives: Points boost and point earnings based on effective balances. These points will be eligible for Season 3.
  • Future Incentives: Additional incentives will be added for stakers in future updates based off community feedback.

Governance Participation

  • Voting Capability: Users will be able to vote with their staked tokens, enhancing decentralized governance.

Implementation Plan

  1. Smart Contract Development: Develop and audit the staking contract for deployment on the Ethereum mainnet.
  2. Points System Integration: Integrate the points system based on ETHFI staked and effective balances.
  3. User Interface: Develop a user-friendly interface for staking, viewing points, and participating in governance.
  4. Future Incentives Planning: Plan and develop additional incentives for stakers to be rolled out in future updates.
  5. Launch: Deploy the staking contract and user interface within two weeks following the completed audit.

Proposal Review and Adjustments

This proposal has been designed with extensive community feedback in mind. Regular reviews and adjustments based on community input ensure that the staking mechanism remains aligned with the needs and values of the ETHFI community. Clear guidelines, transparent operations, and regular updates will build trust within the community, ensuring that the staking mechanism is perceived as fair and beneficial.

Conclusion

This proposal aims to enhance the ETHFI ecosystem by implementing a staking contract on Ethereum mainnet. By incentivizing users through a points system and future benefits, and allowing governance participation with staked tokens, we can foster greater engagement and growth within the community.

Voting

Voting duration: The voting window will be open for 5 days

Voting to be done through snapshot: Snapshot

  • For: Approve the deployment of the ETHFI staking contract on the Ethereum mainnet.
  • Against: Do not approve the deployment of the staking contract.

We look forward to your support in enhancing the ETHFI ecosystem through staking and governance participation.

73 Likes
2

I support proposal to add staking contract

8 Likes
3

Approve the deployment of the ETHFI staking contract on the Ethereum mainnet.

9 Likes
4

agree to the proposal. deploy ETHFI staking contract but strongly suggest not only on Ethereum mainnet but also to other Layer2 chain; like Arbitrum, Linea, Mode and Scroll.

10 Likes
5

This proposal aims to better align users and active governance participants, which we think is crucial for a protocol’s success.

From the available information, this proposal appears to be thoughtful and well intended with a clear, and safe plan for the contract’s development & deployment.

One open question:

  1. Will non-staked ETHFI tokens be able to vote in future snapshots? Our interpretation of the proposal is that only staked tokens will be able to vote, which we think is important.

We look forward to future developments of the staking contract mechanisms as its importance will likely grow over time.

We will be voting yes on this proposal.

8 Likes
6

I agree with ETHFI staking proposal, but it would be better for do the staking in a L2.

4 Likes
7

Yes, non-staked ETHFI will be able to vote

4 Likes
8

I agree to the staking contract deployment

2 Likes
9

agree on propsal of staking ethfi

4 Likes
10

Its a yes! big added value to put your funds to work instead of just sitting on them :slight_smile:

3 Likes
11

I am FOR the proposal.

3 Likes
12

Hi to All. Very excited to see beginning of the ETHFI staking journey. All looking good for first staking proposal, however for Points Boost: users receive 1.1x-2x boost on their loyalty points when staking ETHFI worth at least 10% of their total effective balance, I would suggest increasing this limit up to 25% ……… Also looking forward to see more proposals related to ETHFI staking ‘…… my vote is “for” Thx!

3 Likes
13

It feels like the details are still a little light.
What are the details around unlock periods? Is there any thought towards a veETHFI like model to align stakers with the project’s long term success?

I have to abstain unless more specifics are given.

3 Likes
14

I support this proposal. Looking forward to hearing more about the plans for the Points System, beyond season 3.

2 Likes
15

Yes, I…Support this proposal of… staking contract.

3 Likes
16

Been waiting for this, the more use cases for etherfi the better! I support it. However I’d would much rather be paid in etherfi tokens rather than points. What will points be worth after the third airdrop?

3 Likes
17

i agree the proposal

3 Likes
18

I support the ETHFI staking proposal

3 Likes
19

I approve the deployment or ethfi staking contract on the Eth mainnet

3 Likes
20

I Agree with ETHFI staking proposal.

3 Likes