We have drafted a first version of our staking concept for FlightDelay and similar products, and we are happy to discuss!
Here is the concept:
Here is a sample calculation. Please create a copy of the doc, so you can play around with the numbers.
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Hi, if initially the demand for insurance is higher then current assets staked, will Etherisc bootstrap the network by staking themselves and increase the Maximum Exposure? Or will all initial insurance requests that exceed the MEX be rejected?
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yes indeed this is the plan. We will certainly provide a decent amount of initial funding for the risk pool, however, I expect that we’ll find interested investors very quickly to solve this chicken-and-egg-problem!
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Hey, I have been enjoying reading the staking concepts. I’m sure whatever is selected will be great.
Can you please provide feedback on the below concept?
Staking DIP opens the door to staking xDai on Ethersic.
If a user stakes 10,000 DIP in a pool, the earnings expected would be in the form of liquidity mining rewards for DIP. Collect DIP based on the time DIP is staked. At the end of the year for example, no matter what happened to price, the expected holdings would be 10,000 DIP + 1,000 DIP. Once the grant runs out for LM or it’s no longer needed, a small portion of the risk pools revenue can be used to buy and redistribute DIP.
The other potential earnings would be if the user added xDai to the pool which is the pool at risk for payouts. Users who staked xDai would earn from service fees.
Reasons why I think would be good.
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Impermanent loss. I believe this will stop many from staking. (Not that the other models would fail without them).
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There are another two main users that are looking to benefit off the good work you’re doing! A. user who just wants to accumulate DIP. With this staking model, this is being accomplished. Users can stake DIP, not worry about price, and know their DIP #s are flying. B. user, only wants to provide stable coins and has no interest in any other token. Not happy here because they would be required to buy DIP in order to stake and participate in the risk pool. A thought here (if this is an issue), DIP stakers can receive sDIP or xDIP. Holding sDIP, one receives slightly more LM rewards. If a user selects sDIP, the equivalent xDIP is generated in an open Ethersic xDai risk pool. B. users can then deposit xDai up to the available xDIP. When a user in that position leaves, the xDIP opens up. In the event sDIP leaves (which shouldn’t be often if instituting a small multiple on all LM rewards), after the current policies finish, xDai is returned from the last user(s) who deposited to the pool.
If a concern is, users will only provide DIP and not xDai, it could be offset by offering higher liquidity mining rewards on xDai until a liquidity threshold is met. A CDP here that took DIP would be great. Many users would want to leverage their position with a stable that was earning them more of their collateral.
In this case, a 1:1 ratio with DIP to xDai. If you provide 1 DIP, you can either receive 1 sDIP or 1 xDIP. 1 xDIP allows a user to stake 1 xDai.
Depending on circulating supply and how well the risk pools are doing, one can look to increase the available xDai per DIP. I believe the model is malleable enough to ensure longevity.
*Thank you for adding feedback in telegram. I agree, I think this is a good approach, “The more policies are sold, and the less free liquidity available, the higher the incentive, and vice versa.” Regarding “not be possible to stake a lot, withdraw immediately and earn an incentive. This turned out to be more difficult than expected”, could a timelock be instituted? A min of ~30 days, if you choose 30 days, you earn fewer rewards than someone choosing 100 days.
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Hi @LilDipper, sorry for the late reply, and thanks for your thoughtful ideas!
I fully agree that the staking model is sensitive in may dimensions. The idea behind making staking DIP mandatory is that the DIP tokenholders basically created the platform with their investment, so it is a MUST to link DIP ownership to the possibility to earn money on this platform.
But it needs to be balanced. In our system, all these factors, ratios etc. will be configurable so we (or the community of DIP tokenholders) can adjust them until the system is fair and balanced.
We will see!
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