FRENS points/Voting Rights for $GHST QiDAO Vaults

All,

Since the inception of the QiDAO, there is currently $1.7 million USD worth of TVL across all open $GHST vaults. This is a lot of $GHST that is otherwise sitting underutilized and unmarked in terms of voting rights.

I am proposing that we start issuing FRENS points AND voting rights to vault owners either on a 1:1 basis (1 $GHST locked = 1 Frens point = 1 Voting Right point) or some diluted basis due to the fact that many use vaults for leveraging and borrowing more $GHST. This would fix a lot of capital and governance inefficiencies that currently exist if implemented.

I do not know the technical lifting that would need to be done to get this accomplished, and would like to find some answers to that in this forum.

Let’s get this discussion going so a snapshot vote can take place if feasible. I believe that the Frens Committee and Pixelcraft should weigh-in a lot here and would love everyone’s feedback.

Best,

AL

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I believe this was brought up in the discord a few times. I think the problem is that qi vaults don’t issue a receipt token like AAVE or Compound, so implementing FRENS is tricky.

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This but I think its a really great idea. Love the Qi vaults and i’d be 100% for it if we get past the technicality

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Hmmmmm, that would make sense.

What do you mean by a receipt token btw? I’m unaware of how that works.

I would actually take the other side on this one. FRENS is the opportunity cost of staking your GHST at QiDao or any another outside lend/borrow protocol. What would be interesting is if you earned FRENS for staked amtokens within your Gotchi or if Aave integrated yield bearing GHST tokens in the Aavegotchi portal. This would be even more incentive for crypto frens to join the paarty.

Hey fren,

I get where you’re coming from in terms of an opportunity cost & it’s an interesting perspective that I can agree with in an economic sense. I get additional $Qi yield by leaving the ecosystem with my $GHST.

But imo it all boils down to incentives. Vault holders open vaults to borrow more $GHST (additional data would be nice if feasible to support this), and any additional rewards involved would hopefully lead to some increased amount of buying pressure for $GHST as it becomes more profitable in the whole APY sense of things to go this route.

So the opportunity cost could really be turned into more of incentive, although maybe with some side effects. I could see an uptick in volatility if liquidations grow to be a problem, but given the nature of the bonding curve and low volatility in $GHST I don’t practically see a problem.

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I don’t agree with the notion of FRENS rewards being an offset to opportunity cost. If anything, we should be promoting the use of GHST across many protocols, as this will be good for the Aavegotchi economy. The only real concern I can think of is that you can leverage GHST quite heavily in QI, which would also translate to increased FRENS rewards. Though it can be argued that this is fine considering the risk involved in leveraging.

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I see both your points. I guess the only real impact would be dilution in the value of FRENS but would be offset by GHST appreciation and balanced by the fact that leverage will average out over time due to inherent volatility.

yes, 1:1 for voting rights is reasonable, but not for Frens, single-sided staking Ghst for Frens should remain on Aavegotchi only