Generally agree that using the BAL heading to auraBAL stakers is the best path.
As for the fee increase, from what I understand, it requires redeploying a new staking contract, and do a liquidity migration…again.
So changing the fees wouldn’t need a redeployment (the fee caps got increased with the recent LP migration). The thing that is locked in (and would require a redeployment to fix) is the part where you buy back the auraBAL before distributing it to the auraBAL stakers - this BAL allocation will always go to the base auraBAL staking contract. Luckily there is a way round that though by creating a wrapper contract and having auraBAL stakers move their capital to this new wrapper contract that converts all the BAL it earns into auraBAL.
Currently:
- auraBAL gets 20.5% of BAL emission + AURA + bbaUSD
Solution:
- Create new wrapper reward contract for auraBAL that has auraBAL and AURA as reward tokens
- This wrapper reward contract will use all BAL and bbaUSD earned from the base auraBAL reward pool to market buy auraBAL
- Could potentially add gamification/stickyness to give a boost the longer you stay in (like chicken bonds-esque or some sort of veModel) that get a boost the longer they are locked in
- Change fees to split to 18.5% auraBAL and 2% platform fee (platform fee capped at 2%). Send this extra 2% directly to the wrapper as auraBAL to make the base yield much higher. This means that there is a strong incentive for auraBAL stakers to migrate to the new contract as the rewards are higher
Code should be simple depending on the addition/complexity of the gamification part. Only need to convert the BAL/bbaUSD into auraBAL (could use cowswap if the routing worked, or at worst do 2 on chain txs wrapping into 8020bpt and swapping using a protected fn).
Open questions:
- Is the additional 2% increase in fees enough to incentivise users to migrate? If not, it’s possible to increase the allocation going to the AURA lockers and re-allocate that
- Do we want this gamification/ve layer to provide stickiness?