Hello Sundae DAO Community!
This proposal seeks to adjust the staking address attached to the SundaeSwap v3 liquidity pools.
Context
Input Output Global are building a data-protection focused Cardano partnerchain called Midnight. As part of this, they have announced plans to do a “glacier drop” of the NIGHT token, distributing said token to cryptocurrency users across multiple blockchains, including Cardano. Details about how this Airdrop will work are sparse, but it is anticipated that it will be based on how much ADA you hold in your wallet.
There is roughly 8 million ADA locked in the Sundae v3 smart contracts under a smart contract staking address earning rewards for the protocol. Additionally, the protocol has a “Treasury Administrator”, currently set to Sundae Labs, that is responsible for withdrawing these staking rewards to the treasury, or potentially updating the staking address attached to various liquidity pools.
Given the lack of direction on how smart contracts will participate in that snapshot, we would like to propose replacing the staking contract attached to most pools in the Sundae v3 protocol with a normal wallet controlled staking address until after the Midnight airdrop is finalized.
Any ADA earned as protocol revenue would still be directed by Sundae Labs as previously allocated. Any NIGHT earned by the airdrop would be directed to the Sundae Treasury, likely to be distributed proportionately to liquidity providers via a future proposal.
Decision
With the above in mind, we propose the following vote for the Sundae DAO:
- Update the list of “Allowed staking addresses” in the protocol settings to include a new staking address under Sundae Labs exclusive control
- Update at least the top 80% of pools by TVL to use this new staking address
- Register this staking address delegated to the SMILE pool
- Direct any ADA staking rewards to be distributed as protocol revenue according to the previous approved allocations
- Deposit any NIGHT earned this way into the SundaeSwap Clarity DAO treasury
- Revert all pools to the previous staking address and remove the new staking address from the protocol settings after the NIGHT distribution is confirmed
Additionally, given that we anticipate this being relatively uncontroversial and time sensitive, we would like to make this a 5 day vote instead of a 15 day vote. Please raise any objections on this temperature check if you would like a full 15 day vote
The governance vote will have the following two options:
- Vote YES to adopt the scheme above
- Vote NO to not adopt the scheme above and continue discussions
Are you interested in voting in an on-chain governance vote to this effect?
- Interested