KIP-115: Reduce Staking Cooldown
This KIP proposes changing the staking cooldown period in Kwenta from 14 days to 7 days, enhancing liquidity and user flexibility.
The proposed adjustment will modify the staking cooldown mechanism within the Kwenta protocol. This change aims to provide a balance between maintaining secure governance and offering users greater agility in managing their staked assets.
The existing 14-day cooldown is a preventive measure against voting manipulation but is overly restrictive for users needing quick access to their assets in a volatile market. Reducing the cooldown to 7 days aligns with the need for both responsive liquidity and reliable governance.
StakingRewardsV2implementation so that the immutable
MIN_COOLDOWN_PERIODvariable is reduced from
- Call the
StakingRewardsV2.setCooldownPeriod(uint256 _cooldownPeriod)function with
Currently the cooldown period is adjustable via the
StakingRewardsV2.setCooldownPeriod function. However it can only be set between the bounds of the
MAX_COOLDOWN_PERIOD defined in that contract. Currently those values are set at
1 week and
52 weeks respectively:
uint256 public constant MIN_COOLDOWN_PERIOD = 1 weeks;
uint256 public constant MAX_COOLDOWN_PERIOD = 52 weeks;
Due to the limitation of the
MIN_COOLDOWN_PERIOD, we can only reduce the cooldown period to a minimum of
1 week via the
setCooldownPeriod function with the current smart contract implementation. In order to reduce the cooldown period further, it requires a smart contract upgrade to change the value of
MIN_COOLDOWN_PERIOD. Thankfully this is an extremely trivial smart contract upgrade - about as simple as it gets.
Parameter Change Summary
We would make the following two parameter changes:
1 weekThe argument for
MIN_COOLDOWN_PERIODis that it provides the maximum amount of flexibility, and the value can be safely set to
0as a way of totally turning the cooldown off if we ever want to. The reasoning behind
1 weekfor the cooldown period is described above in the KIP Motivation section.