I want to discuss the idea of safety staking pool.
Many project establish such pool to protect ecosystem against various risks.
The idea is that users can get rewards for providing security to the system.
Some project use own governance tokens for such fund (see AAVE), some use stable coins or ETH.
There are pros and cons of such approaches, we can think of different options. For instance in case of major hack the governance tokens can be affected as well, but thats a fair risk reward perhaps for participation in the protocol (as described in the white paper). Stable coins, at the same time, are not so much capital efficient solution.
I would think of some popular and less utilised token that may get another utilisation. Lets say LP tokens of AMMs that are not utilised.
Curious to hear feedback.
hmm… Andrey, can you please cclarify - your idea in general assumed that any individual participants can join this safety pool with their funds or not ?
I assume the staked funds are going to be $OPIUM tokens?
Can you elaborate on which type of risks it could cover?
Smart contract hacks / bugs? This might be very harmful for the token as at the time of the insurance event. As the amount of affected funds might be too huge for the available $OPIUM liquidity on the market to cover the losses.
I think we need to strictly define it as a clear risk disclosure to stakers.
For the implementation AAVE’s stAAVE could work, but it has a lot of useless for us codebase which also costs additional gas. Although their implementation is upgradeable, it still doesn’t have the redemption logic from DAO, when the shortfall even occurs.
1 Like