Extending Aavegotchi's GLTR Staking System with a Trade Based Staking System

Ideas
1

Aavegotchi has a staking system that can be found here: GLTR Staking | Aavegotchi

Users deposit liquidity tokens and earn GLTR over time.

It is a good staking system. It is a claim-based/earning system. Over time users claim or receive GLTR rewards.

Instead of a claim/earn system some may prefer to use a trade-based staking system.

With a trade staking system a user sells/trades his liquidity tokens in exchange for a staking NFT. At a later time the user can sell/trade his staking NFT back to the trade staking system and receive the original amount of liquidity tokens plus GLTR rewards. In addition the staking NFT is a standardized ERC721 token that can be transferred or traded with others and be used in existing NFT software.

I am interested in building a trade staking system on top of the existing GLTR staking smart contracts. Note that this is unrelated to GHST Staking 2.0 and does not conflict with that.

Who I am

I am Nick Mudge, mudgen. I am a smart contract developer and security auditor. I wrote the initial smart contracts that launched Aavegotchi. I am author of EIP-2535 Diamonds standard. I am a participant in Aavegotchi games and ecosystem.

What it means if it is built:

  1. It means no changes to the existing staking system. It will keep running as it is without any change. Existing users do not have to migrate to the trade staking system if they don’t want to.

  2. It means an additional trade staking system that can be used. It will work by integrating with the existing staking system at the smart contract level.

  3. It means there is no additional supply of GLTR created since the trade staking system will get its GLTR rewards from the existing staking system.

  4. For each user the trade staking system will generate the same amount of GLTR rewards as the existing staking system (because they come from that system), PLUS potential bonus GLTR rewards coming from a mechanic described next.

Bonus

If the trade based staking system is built a technically different/special crypto collectible will be launched that can only be purchased with GLTR. Half the GLTR proceeds are burned and the other half are automatically sent to the trade staking system and allocated to the staking NFTs.

Resource that are needed:

A total of 10,000 GHST or USDC or DAI will be needed from the Aavegotchi DAO treasury.
5,000 will pay for the smart contract development.
5,000 will pay for the user interface development.

I will do the smart contract development. I will need a partner to build the staking user interface. The funds are paid out when the trade staking system is launched and working.

I am seeking feedback about this idea.

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2

Hey Nick,

I am not sure i understand the benefits correctly. Is it basically how aave works, but instead of “collateral” token, you receive NFT? Dont we stake “proof” of providing liquidity to get GLTR rewards?

What do you mean by “technically different/special crypto collectible will be launched that can only be purchased with GLTR” … It seems like you have something particular on your mind?

Thanks for clarifying

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3

Is it basically how aave works

Yes, in a way.

Don’t we stake “proof” of providing liquidity to get GLTR rewards?

No. The current GLTR staking system has no staking token to trade for original liquidity amount + plus rewards. This is what my proposed staking system solves.

What do you mean by “technically different/special crypto collectible will be launched that can only be purchased with GLTR” … It seems like you have something particular on your mind?

I mean that it won’t be a regular ERC721 or ERC1155 crypto collectible token. It will be technically different, and technically interesting at the smart contract level. Yes, I have something in mind but how it is different is not related to how the new staking system I am proposing will work.

Some discussion of this proposal idea is occurring in the Aavegotchi discord here: Discord

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