Temperature Check - Decentralized Sundae Staking Vaults

A vault is a smart contract containing a native asset that allows users to stake their sundae in the vault in return they receive some amount of that native asset based on the amount of sundae they have staked.

For an example, the creators of the token SBerry would be able to take 5% (or any arbitrary amount) of their total supply, and place it into a vault on SundaeSwap. Then users could stake their sundae in the vault for 30 days, and withdraw their initial Sundae + some accumulated SBerry (based on the amount of sundae they are staking) at the end of the month.

This proposal seeks to allow project creators / token holders to create single asset vaults to launchpad their token.

Any project could apply to create a vault for their token, and we could either employ an open policy where all applications pass, or we could have the DAO vote on which new projects to create vaults for.

Additionally, a second type of vault could be introduced, in which the users stake Sundae/ADA LP tokens to receive more of the Vault’s tokens. The fees generated by the liquidity that is locked into the vault would go to the Vault’s creators, thus making this feature a launchpad of sorts. Projects would be able to launch their tokens on SundaeSwap, and receive “funding” from the liquidity fees generated by their vault.

We we introduce the ability for users stake sundae to receive other Cardano Native Tokens in this way?

  • Yes
  • No

0 voters

4 Likes

This will add much needed utility and an incentive to hold Sundae and grow its use cases and ecosystem.

4 Likes

We start to need utility in the token for sure.

2 Likes

If I understood the proposal correctly, you stake SS tokens to get other project tokens?

If yes, it’s a good start for SS token utilities. I’m up for that.

3 Likes

It’s great to see these initial discussions happen now. I get that this is just a temperature check but this needs some more thought and detail. What’s the purpose of these vaults, where does the initial supply come from and how much, and basically what is the staker providing exactly to the vault (and then paid reward/interest for doing so). How is the liquidity going to be used in the vaults.
Interesting stuff - thanks for the contribution and getting the conversation going :slight_smile:

1 Like

The initial supply comes from the project creators, they can determine how much. If you have a project, you would be able to apply to create a vault. Liquidity token stakers provide the vault creator with LP fees, which they can use to fund the development of their project. In return the stakers get more of the projects token than if they had just staked Sundae instead ADA/Sundae liquidity tokens.