KIP-114: Redistribute Synthetix V3 Perps Rewards on Base to KWENTA Stakers on Optimism
Redistribute the USDC rewards earned from Synthetix V3 on Base to KWENTA stakers on Optimism.
The treasuryDAO will use a Gnosis Safe on Base to capture, bridge, and redistribute the USDC rewards earned from Synthetix V3 to KWENTA V2 stakers on Optimism. The treasuryDAO will use a portion of the rewards captured from staking KWENTA to purchase SNX and participate in Synthetix governance.
This proposal simplifies KIP-110, offering a staker-optimized outcome for rewards management while enabling the treasuryDAO to accumulate SNX to prepare for opportunities within Synthetix V3 and strengthen alignment with Synthetix.
- Establish a gnosis safe on Base controlled by the treasuryDAO, separate from the Base treasuryDAO wallet, which will be used to capture the USDC earned by Kwenta in Synthetix V3. Synthetix will be provided with the associated address to use with the Kwenta tracking code to direct rewards to this address.
- The Core Contributors will develop an automated bridging mechanism to transfer the USDC earned on Base each week to Optimism. The treasuryDAO will facilitate this process manually in the interim while development takes place.
- The Core Contributors will develop a rewards distribution mechanism on Optimism which will enable Kwenta V2 stakers to claim their share of USDC in proportion to the amount of historical KWENTA they had staked at the time the rewards were captured.
- The treasuryDAO will accumulate SNX using a portion of the USDC claimed from staking KWENTA at their discretion. It will be up to the treasury to decide whether SNX should be purchased on Optimism or if assets should be bridged to Base to purchase SNX there. The SNX may be staked in order to participate in voting and, eventually, liquidity management. Note that the treasury still retains the autonomy to increase or decrease its quantity of KWENTA staked at its discretion. The treasuryDAO retains the autonomy to sell the accumulated SNX as needed should they feel the proceeds outweigh the benefit of using the SNX.
One bonus note: We've been discussing a wrapped staked Kwenta token which we can service on other chains while using Optimism (for now or forever) as our home for staking. This solves a few problems but most interestingly it can act as a new multichain token that earns yield and has a value backed by the the Kwenta token and our rewards system.