Single-sided staking for Insurance
If passed, this proposal will result in offering single-sided staking to create an insurance pool that can be used to cover a shortfall event.
Staking can be powered by the following incentives and parameters:
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300-500k tokens per month for single-sided staking rewards
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Single-sided staking rewards auto-compound
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Cooldown period of 7-10 days before rewards can be withdrawn. 24-hour window to withdraw before re-staked**
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Up to 30% of the pool can be liquidated to cover a shortfall event
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Insurance-staked APY can still be used to vote in governance.
Yes
A single-sided staking option will be added to the APY.Finance platform to create an insurance pool
No
No action will be taken
** Cooldown period purpose: a cooldown is required for effective insurance, if people can withdraw instantly, the pool will get drained right after a shortfall and before the funds can be used to cover it. People would have collected the rewards without any of the risks
A Withdrawal window between restaking is also required otherwise people can immediately start the cooldown period after staking and effectively get the option for instant withdrawal