A new xAlpaca implement

Community Discussion & Proposal
21

I wouldnt allow early withdrawal otherwise i think it defeats the purpose a bit, esp on shorter cooldowns

22

I might have missed something…whats the rationale for 21 vs 28 days and eg not 7 or 14?

Is the primary purpose of the mechanism to avoid people from scalping? If so any number above eg 2-3 days is somewhat the same?

23

Also - what’s the actual benefit of this implementation until there’s enough reason (APY) to stake?

Irrespective of what the gov model is, the APY is still 2-3%.

How’s this change actually benefitting the protocol in practical terms at this stage?

I can see the value if we had like 20% APY…shouldn’t we address the root cause rather than embarking on vanity projects?

1 Like
24

I see no reasons to not have xAlpaca as transferable, no negatives and it opens up for further products in the future.

About lock/withdrawal I would like a 28 days lock with early withdrawal and a big fee like 1-2% for each day of early unlock.
I think that a big lock time is required for now as we have a very small market cap and the votes could be easily manipulated.
We can’t compare lock times to layer 1 tokens with 10-100x our market cap.

1 Like
25

If we want to increase the interest for Alpaca and staking:

  1. Do you think that investors would prefer staked Alpaca which needs to be kept in the same wallet or which is transferable, e.g. if they need to change wallet? Especially if this feature does not require any additional dev time to implement? Moreover - transferable Alpaca gives us the opportunity of developing new products (already mentioned by Bibendus - “no reasons to not have xAlpaca as transferable”).

  2. If we enable early unlocking for a penalty, what would it mean? It would be more attractive to new investors + Alpaca could earn some additional penalty rewards + Selling pressure would be gradually distributed within 2X days.
    If we don’t allow early unlocking what will we get in addition?.. nothing… no penalty rewards, unstakers will be selling all at once. How is this of any advantage to us?

The 14.7 M whale is staking again. OK, so let’s imagine he really needs to sell fast for any reason. Why are we refusing e.g. 1,500,000 Alpacas paid in penalty and insisting on the fact that he needs to sell after 2X days (which will eventually cause the same damage to the price - and probably even higher, as the price could fall because of the anticipation of such huge sell comming) and all these with 0 penalty profit for the protocol?

Let them choose - early unstaking with penalty or selling only after the cool down period. I don’t see any harm only advantages mentioned sooner.

1 Like
26

I also agree on the fact that we should implement a withdrawal fee. Let them pay.

1 Like
27

We should allow for both.

28

Thank you for all the feedbacks. Looks like there are enough interest on both the topics of early withdrawal fees and transferable.

  • I will add whether to make it transferable to the votes

  • For the early withdrawal fees, I would like to hear suggestions on what the fee function should look like.

1 Like
29

I have put up an AIP for this topic. [AIP-24] New Governance Vault Implementation

You can review and make any additional comments before it goes to a vote:

30

As for the fee function, I support what was already suggested before:
0.5 % per each day of early unstaking.

It depends on the cooldown period, which one of them wins, but generally, the max. penalty would be either 10.5 % (21 days) or 14 % (28 days).