SCP-177 ThorFOX/RFOX Minor Update: Accepting FOX/ETH Uniswap V2 LP Tokens for Staking

Summary: This proposal seeks to update the current ThorFOX/RFOX tokenomics to allow staking not only with FOX tokens on Arbitrum but also with FOX/ETH Uniswap V2 LP tokens on Arbitrum. This change aims to enhance liquidity provisioning, strengthening the FOX ecosystem.

Abstract: This proposal is a minor update to SCP-166 ThorFOX, which established a mechanism by which DAO tokenholders can stake their FOX tokens and receive a share of the RUNE affiliate fees. This proposal aims to update the ThorFOX/RFOX tokenomics to allow staking with FOX/ETH Uniswap V2 LP tokens on ARB, thereby strengthening the DAO’s alignment with the THORChain ecosystem.

This initial vote will set the parameter to 0% of total RUNE fee distribution but allow for the inclusion of a token outside of the FOX token on Arbitrum.

Motivation: The primary motivation for this proposal is to ensure that the ThorFOX/RFOX program is beneficial to the DAO while providing more options for the stakers and DAO token holders. By enabling staking with FOX/ETH Uniswap V2 LP tokens, we can enhance liquidity provisioning on both mainnet and Arbitrum, thereby supporting both ecosystems.

Specification: This minor update to SCP-166 only alters the portion of the proposal which details the tokens allowed for staking that are then eligible to receive a portion of the monthly RUNE affiliate fees distributed to stakers. This would allow pro rata bucketing before any split of the revenues. This proposal does not specify the mechanics how LP stakers would be rewarded. If passed, a subsequent SCP will be discussed as to how this split would be implemented.

If passed, this proposal would implement the same 28-day unstaking period.

If passed, this proposal would implement the default that characteristics should be identical when possible for the LP token treasury remission/staking/burning protocols.

If passed, this proposal would implement the following changes:

Staking with FOX/ETH Uniswap V2 LP Tokens: In addition to FOX tokens on ARB, rfox/ThorFOX as a program would technically be accept FOX/ETH Uniswap V2 LP tokens.

Benefits:

Multichain Yield: Incentivize liquidity with RUNE, a different chain’s native token. Evergreen Contract: Once proven on Arbitrum, this model may replace the FOX Farm Rewards contract on mainnet. Enhanced Liquidity: Accepting FOX/ETH Uniswap V2 LP tokens for staking will improve liquidity. Stronger Alignment with THORChain: This update reinforces the DAO’s commitment to the THORChain ecosystem. Increased Flexibility for Stakers: More options for earning yield.

Drawbacks:

Engineering Work: This update will require effort from the engineering and product teams to implement and maintain. Complexity in Yield Distribution: Determining how to distribute affiliate fees among different types of staked tokens may add complexity.

Vote:

For: Enact the proposed changes to accept FOX/ETH Uniswap V2 LP tokens for staking. Against: No changes will be made to the current tokenomics.

start

June 27, 2024

7:19 PM

end

July 2, 2024

11:19 PM

Voting

off-chain

Voting type

single-choice

Voters

Votes

11,868,158

Final Votes

closed

For

11.9M FOX

100%

Against

132.8 FOX

item label

Placeholder title of a dao proposal

DAO name

0x000000000000

Mon 00, 2024 00:00

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