SWISE Voting while locked in LP

Backstory

While you are providing liquidity in the SWISE-sETH2 pool, your SWISE tokens become unavailable for voting. This leads to people who would like to participate in the voting process, but due to their liquidity being locked, are not able to have a voice in the DAO.

What if we could enable / encourage participating in the SWISE-sETH2 pool by enabling liquidity providers to continue to have a voice while they are helping to support the StakeWise ecosystem by providing liquidity?

Idea for Discussion

Recently cryptomorrow in the Discord asked if it would be possible to exercise voting rights of the SWISE while locked in the liquidity pool.

My initial thought would to have it apply to the SWISE-sETH2 pool only, as that is what is “locked”.

If someone wants to exercise SWISE voting with rewards, there’s nothing to stop them from pulling their “rewards” and “fees” prior to a snapshot being taken (the forum is where the discussion happens - we could ask the team to consider a 24 hour notification post somewhere prior to taken the snapshot so that people have an opportunity to do so).

As the oracles determine what the current position is on a daily basis to determine rewards - that same logic could be used to gather the information that would be needed for the snapshot for any votes.

This could then be leveraged as part of the snapshot mechanism to give liquidity providers a voice.

Expected Result

  1. Increased participation in the SWISE-sETH2 pool
  2. Increased liquidity provider satisfaction of the SWISE-sETH2 pool
  3. Increased participation in the DAO voting process

Thoughts?

-brian

4 Likes

I would love exploring the idea of one SWISE-sETH2 pool position == one vote, regardless of position size.

1 Like

100% support this idea!

2 Likes

Candidly, I’d struggle supporting this idea. If I was a liquidity provider - if I wanted to accomplish the position == one vote, then all I would be doing is just holding one SWISE token for voting purposes.

Or what am I missing?

As an LP, I’d like my voting power to reflect my SWISE position in the pool, rather than a solution that disregards position size. Also - if SWISE tanks compared to ETH and I end up with a lot more SWISE in my position as a result, at least it’ s ‘sweetened’ by that fact that I then have more voting power

4 Likes

To start with, I definitely support the idea of an LP position giving voting power for the reasons you mention.

My comment was more about taking this even one step further and exploring the idea of using something like this as one person = one vote since I think economic voting power is a bizarre concept that should be left behind. But that’s another question entirely and I didn’t mean to hijack the thread. Sorry.

2 Likes

No - that’s a fair question to ask. You’re covering the concept of equitable voting.

The implementation of EVP (Equitable Voting Protocol) requires a separation of voting rights from monetary contributions (e.g. purchasing of SWISE to participate in the DAO).

One could derive a community token - call it cSWISE (community SWISE) - where you get voting rights that is transferred to community members and working in exchange for non-monetary contributions to the protocol.

Great idea! Users participating in LP shouldn’t be penalized in terms of voting power.
There must be a mechanism of reading the amount of SWISE in LP position. Voting power should be reflected by that + whatever is in the wallet.

3 Likes

Or maybe it doesn’t require separation. In thinking over this some more (with some more coffee in my system) - the SWAT is the enabler to give EVP (Equitable Voting Protocol). When this is in place, we now have Economic Voting Power and Equitable Voting Protocol (or maybe Power) at play here.

My suggestion @rruoste - is maybe we go forward to implement the SWAT so that there is an equitable voice (from people earning SWISE) and then it creates that balance you’re looking for?

And then also enable the SWISE voting (which enables the economic voting power) and also spurs people to provide liquidity in the SWISE - SETH2 pool and increases overall user satisfaction.

Full support for this idea, I’m assuming that amount of SWISE in position could be snapshotted similar to how sETH2 is in the sETH2-ETH pool

4 Likes

Full support for this idea. As long as there is protections against attacks on the DAO, which I know we have measures in place to prevent anyway.

2 Likes

I 100% support this idea too. I’m not sure that snapshot.org has a matching strategy though :
snapshot-strategies/src/strategies at master · snapshot-labs/snapshot-strategies · GitHub

W would need a combination of erc20-balance-of + another strategy I cant find :slight_smile:

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Has anyone found a method by which this could be enabled?

Seems like snapshot-labs does not provide a matching strategy for now.
Developing one could be one of the first SWAT task !

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I certainly support this proposal. It would be nice if all Swise, including the LP, could be used for voting.

Unless it has some negative effects that I can’t think of. And that there is a reasonable technical solution for it.