StakeWise Incentivized Migration Program - Request #1

Following the positive response from both the DAO community and prospective B2B partners since the Incentivised Migration Program’s initial proposal, StakeWise has since received the commitment from a close node operator partner to migrate their validators to StakeWise Vaults.

Consequently, we would like to request the DAO to allocate 375,000 SWISE and 18.4 osETH from the DAO Treasury to enable the migration of ~15k ETH (~$50M). The osETH will be swapped into ETH prior to its distribution.

The migration is expected to take place over several weeks given its manual nature. Any capital not used once the migration has concluded will be sent back to the DAO treasury.

Allocation Breakdown

Under the Incentivised Migration Program, StakeWise will provide:

  1. Yield Reimbursement - paid to clients for the yield lost during the period between validators exiting and being reactivated within StakeWise - 0.001 ETH reimbursement per 1 ETH staked.

  2. Gas Reimbursement - paid to operators for the gas costs associated with reactivating the validators - maximum of 0.008 ETH per validator.

  3. SWISE Bonus - paid to the operator - 25 SWISE per 1 ETH migrated.

With 15,000 ETH (468 validators) expected to be migrated, 15 ETH is required for Yield Reimbursement (A) and 3.75 ETH for Gas Reimbursement (B), totalling 18.75 ETH (equivalent to 18.4 osETH).

A total of 375,000 SWISE is required for the SWISE Bonus (C).

Voting

Transfer 375,000 SWISE and 18.4 osETH to the StakeWise Team SLC Multi-sig to be used solely for the incentivised migration of this 15k ETH? Link to Snapshot.

Option 1: For
Option 2: Against
Option 3: Abstain

2 Likes