Title: Sperax Gauge implementation proposal
Author(s): Sperax Team
Reference: Sperax Roadmap 2023
Created: February 14th, 2023
Labels: Product Features
Simple Summary
Sperax Gauge directs SPA rewards (and thus APR) to liquidity providers of Demeter farms in accordance to the voting of veSPA holders bribed by various protocols/DAOs that launched those farms.
Motivation
Implementation of Sperax Gauge will bring an additional value to veSPA holders and liquidity providers on Demeter farms by triggering a market competition of protocols/DAOs that have farms on Demeter. The protocols will bribe veSPA holders with the protocols’ tokens to encourage them to vote for directing SPA rewards to specific farms.
Overview
Sperax Gauge will incentivise liquidity providers in an automated way based on competitive voting of veSPA holders for the various farms where SPA rewards will be directed to.
Sperax Gauge encourages various protocols/DAOs to provide liquidity on DEXs pairing their tokens with USDs. There will be not just currently active Uniswap v3 farms as Demeter will expand to other UniV2-style DEXs such as Sushi, Balancer, TraderJoe, Saddle, Camelot and others.
Sperax Gauge will allocate SPA rewards to those pools.
When a protocol/DAO launches a farm on Demeter pairing their token with USDs, it makes the farm auto-approved and listed on Sperax Gauge.
Any protocol can bribe veSPA holders with the protocol’s tokens encouraging veSPA holders to drive SPA emissions towards that protocol’s farm, increasing the farm’s APR. The voting happens on a weekly base.
The bribe will be distributed to the veSPA holders who voted for the farm - proportionally to the share of veSPA they hold.
Technical Specification
The Sperax Gauge is based on three key smart contracts:
-
Gauge Controller contract
- Keeps the track of all the registered farms and the user votes for them.
- GaugeController also tracks the bribe contract for a gauge.
- Any farm created via demeter and paired with SPA-USDs will be registered to the GaugeController by default.
- Any user with a veSPA balance > 0, lock-expiry > start of next-cycle will be eligible to use their veSPA to vote on one / multiple gauges. Else the user needs to create a new stake position.
- veSPA holder with manual-cooldown and in residual period is not eligible to cast vote. User in this case need to activate cooldown, withdraw and stake their SPA again.
- Users can define the weight they want to vote on a specific gauge out of 100
- Users can change their vote weights for a gauge in an interval of 10 days.
-
Bribe contract
- Tracks all the bribe tokens for a gauge.
- Each gauge will have its own bribe contract.
- Registering of bribe tokens for a gauge will be managed by Sperax. Later on it will be opened for the public.
- Anyone should be able to add bribe rewards for the registered bribe tokens. Bribers can add bribe rewards to the reward pool for at max 10 cycles and for at least a min of 3 cycles.
- Bribe rewards once added can not be recovered by the briber.
- Bribe rewards are distributed once a week. All the user’s voting for a gauge in that week will be eligible to claim bribe rewards for the week where the claimable reward will be proportional to user’s vote share for the gauge corresponding to the total votes for the gauge.
-
GaugeRewardManager contract
- Contract keeps track of the global SPA emission rate.
- Exposes functions to distribute SPA rewards to the gauges based on their relative weights.
Anyone can call the distribute rewards function to add rewards to the gauges at the end of the vote cycle. - The SPA rewards are distributed across all the gauges based on the relative gauge votes for the week.
Voting
For:
Develop Sperax Gauge functionality and integrate it into current and future Sperax Demeter farms.
Against:
Develop Sperax ecosystem without gauge functionality.
- For
- Against
0 voters