{"componentChunkName":"component---src-pages-sccp-sccp-markdown-remark-frontmatter-sccp-tsx","path":"/sccp/sccp-89/","result":{"data":{"markdownRemark":{"fileAbsolutePath":"/vercel/path0/content/sccp/sccp-89.md","frontmatter":{"sip":null,"sccp":89,"title":"Redirect iETH rewards to sETH Shorting Rewards","network":"Ethereum","author":"Clinton Ennis (@hav-noms)","type":"Governance","proposal":null,"implementor":null,"release":null,"created":"2021-03-15T00:00:00.000Z","updated":null,"status":"Implemented"},"html":"<!--You can leave these HTML comments in your merged SCCP and delete the visible duplicate text guides, they will not appear and may be helpful to refer to if you edit it again. This is the suggested template for new SCCPs. Note that an SCCP number will be assigned by an editor. When opening a pull request to submit your SCCP, please use an abbreviated title in the filename, `sccp-draft_title_abbrev.md`. The title should be 44 characters or less.-->\n<h2 id=\"simple-summary\" style=\"position:relative;\"><a href=\"#simple-summary\" aria-label=\"simple summary permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Simple Summary</h2>\n<!--\"If you can't explain it simply, you don't understand it well enough.\" Provide a simplified and layman-accessible explanation of the SCCP.-->\n<p>Redirect current <a href=\"https://etherscan.io/address/0x3f27c540adae3a9e8c875c61e3b970b559d7f65d\">iETH 16K SNX incentives</a> to <a href=\"http://contracts.synthetix.io/ShortingRewardssETH\">sETH short incentives</a></p>\n<h2 id=\"abstract\" style=\"position:relative;\"><a href=\"#abstract\" aria-label=\"abstract permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Abstract</h2>\n<!--A short (~200 word) description of the variable change proposed.-->\n<p>Now that traditional shorting mechanism is available with sETH shorts on <a href=\"https://kwenta.io/shorting\">kwenta.io/shorts</a>, I propose to redirect the 16K SNX incentive from the weekly inflationary supply to the <a href=\"http://contracts.synthetix.io/ShortingRewardssETH\">ShortingRewardssETH</a> contract instead of the <a href=\"https://etherscan.io/address/0x3f27c540adae3a9e8c875c61e3b970b559d7f65d\">iETH Staking Rewards</a> contract.</p>\n<ul>\n<li>sDAO funded sETH Short incentives emmision ends on Friday, 2 April 2021 05:49:59.</li>\n<li><a href=\"http://contracts.synthetix.io/ShortingRewardssETH\">ShortingRewardssETH</a> currently has a duration of 4 weeks which needs to be updated to 7 days. This duration can only be modified at the end of the emission at the periodFinish on timestamp 1617342599</li>\n<li>sDAO will fund a week of incentives at an increased APY to encourage shorters to move over from iETH to sETH shorts.</li>\n</ul>\n<p>A single transaction by the protocolDAO to the <a href=\"http://contracts.synthetix.io/RewardsDistribution\">RewardsDistribution</a> contract to change distributions[1].address from\n<a href=\"https://etherscan.io/address/0x3f27c540ADaE3a9E8c875C61e3B970b559d7F65d\">0x3f27c540ADaE3a9E8c875C61e3B970b559d7F65d</a>\nto\n<a href=\"https://etherscan.io/address/0x12DC1273915A16ab8BD47bA7866B240c253e4c12\">0x12DC1273915A16ab8BD47bA7866B240c253e4c12</a></p>\n<p><img src=\"https://user-images.githubusercontent.com/1251099/111264773-3c42a780-867c-11eb-8034-e313fe5f2fbd.png\" alt=\"image\"></p>\n<p>Call RewardsDistribution.editRewardsDistriubtion() with these args</p>\n<p><img src=\"https://user-images.githubusercontent.com/1251099/111266487-bbd17600-867e-11eb-9f88-7b4d69a55e9a.png\" alt=\"image\"></p>\n<h2 id=\"motivation\" style=\"position:relative;\"><a href=\"#motivation\" aria-label=\"motivation permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Motivation</h2>\n<!--The motivation is critical for SCCPs that want to update variables within Synthetix. It should clearly explain why the existing variable is not incentive aligned. SCCP submissions without sufficient motivation may be rejected outright.-->\n<p>iETH Synths have upper and lower bounds and freeze when the price hits them. This requires the pDAO to manually reset the inverse synth. The protocol should not have manual maintenance or intervention and the new multi-collateral shorts achieve this with a shorting mechanism that is self maintaining also a rewards incentive mechanism that self enrolls and never needs to be reset, purged and redeployed. It is a much better mechanism for the protocol.</p>\n<p>Since iETH is incentivised with SNX to help balance the debt pool there is currently an inflation funded incentive via a <a href=\"https://etherscan.io/address/0x3f27c540adae3a9e8c875c61e3b970b559d7f65d\">iETH StakingRewards</a> contract. When iETH freezes and needs to be reset the process of resetting is massively cumbersome with many steps and room for human error.</p>\n<p>These steps are;</p>\n<ul>\n<li>Purge all iETH holders into sUSD</li>\n<li>Recover sUSD from staking contract</li>\n<li>Calculate all iETH stakers iETH to sUSD conversion amounts</li>\n<li>Disperse the sUSD back to all iETH owners</li>\n<li>Deploy new iETH stakingRewards Contract</li>\n<li>Update Dapps</li>\n<li>Update Rewards Distribution to send SNX to new iETH StakingRewards contract</li>\n</ul>\n<h2 id=\"copyright\" style=\"position:relative;\"><a href=\"#copyright\" aria-label=\"copyright permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Copyright</h2>\n<p>Copyright and related rights waived via <a href=\"https://creativecommons.org/publicdomain/zero/1.0/\">CC0</a>.</p>"}},"pageContext":{"id":"9e39dfa2-dc88-5174-814f-2ca55802df59","frontmatter__sccp":89,"__params":{"frontmatter__sccp":"89"}}},"staticQueryHashes":[]}