There have been community discussions around emissions and possibly making fundamental changes to how the YDF staking platform works, but what has been missing from the discussions is the technical information around the process of making any proposed change.
Described below are technical options and processes for the community to take into consideration when proposing and voting on any changes to the YDF ecosystem.
The goal of the YDF team has always been to grow the platform and increase platform usage, which in turn, brings in more platform revenue to sustain staking emissions.
This goal remains unchanged.
If the community decides to continue without making any changes, the YDF team can then focus their attention on other roadmap items for 2024 that include new revenue generating utilities and revitalizing current ones to grow adoption and again, increase platform revenue.
Making any changes will delay any new developments until the proposed changes can be implemented.
Making a Change
Regardless of what type of staking change is decided upon by the community, there are 2 ways to implement a change. Each option comes with its own challenges from a technical standpoint, as well as, an action that community members would need to take.
New Wrapper NFT Contracts
New NFT staking contracts can be created that function based on the changes decided upon by the community. No other utility contract changes would be necessary, only the current NFT contracts.
With these new NFT contracts, all existing NFT holders would need to wrap their current NFTs into the new NFT contract to receive a new staking NFT back with the updated functionality.
For this option, we estimate that it would take 1 month to build, test and deploy the new contract. Once deployed, all existing NFT holders would have 30 days to wrap their current NFT into a new NFT. Afterwards, all remaining NFTs will be blacklisted to prevent users from continuing to claim yield on their old NFT. Users that have their NFTs blacklisted can contact the team to work with the individual and take the necessary actions.
The biggest drawback to this option is that wrapping existing NFTs into newly functioning NFTs would make creating and burning stakes more gas intensive than it is today, especially on the Ethereum network.
YDF, as a whole, could be relaunched into V2 with any proposed changes made.
Relaunching would take 1 month to prepare for, which includes 1 - 2 weeks of development work for the new contracts, and 1 - 2 weeks of lead time for the community to take the necessary action items in preparation of the relaunch.
The YDF liquidity is locked until the end of 2024, therefore, in order to withdraw liquidity from the current pool to deposit into a YDF V2 liquidity pool, the following action items would be required of the YDF community:
All community members would need to send their YDF tokens to a project owned multisig wallet
Any holder of a staked liquidity NFT (slYDF) would need to un-stake their NFT and send any returned LP tokens to a project owned multisig wallet
With YDF tokens & LP tokens sent to the YDF multisig wallet, we can withdraw as much liquidity as possible from the current YDF V1 pool and use it to create the YDF V2 liquidity pool.
Once YDF V2 is launched, all community members who assisted in the transition and either sent in their tokens or un-staked their slYDF NFT will receive a 5% bonus in the airdrop of YDF V2 tokens.
Existing staked NFT holders would be airdropped new staked NFTs that match their current NFTs with the new functionality decided upon by the community. All new NFTs would be airdropped on the Arbitrum network. This will not only save the team on network gas fees for the airdrop itself, but also, every NFT holder will be able to utilize Arbitrum's cheap network gas fees when claiming yield, however, we are willing to work with individuals who prefer to keep their NFTs on the Ethereum network.
For YDF V1 token holders that did not send their tokens to the YDF multisig wallet before the relaunch, a process will be created to convert V1 tokens to V2 tokens.
Lastly, if YDF is relaunched, the new liquidity pool created for V2 will be a Uniswap V3 pool with a 1% trading fee that will go towards platform revenue.