An idea on new token called LSUSHI for distributing a certain percentage of limit order fees
LSUSHI holders are distributed a certain percentage, let’s say 10%, of limit order fees proportional to their shares. SUSHI holders can stake their SUSHI and get new LSUSHI, multiplied by amount x period.
While implementing limit orders, I was thinking of ways to distribute a certain percentage of fees to xSUSHI holders but I don’t see a practical way to do it.
There are 2 ways for it:
- Distribute limit order fees to each xSUSHI holder proportional to their shares at the moment orders are settled. It is not efficient at all because it needs to transfer to each holder, which would increase the gas fee dramatically that relayer are not incentivized.
- Transfer limit order fees to xSUSHI contract when filling order and later xSUSHI holders can withdraw their xSUSHI + fees from the contract. It sounds reasonable but since xSUSHI contract is not upgradeable, it’s not possible to implement as such.
LSUSHI is an ERC-20 token and has 0 pre-minted supply. New tokens are minted to the SUSHI stakers proportional to the amount * period of staking. In short, to get more LSUSHI, they need to stake more SUSHI for a longer time.
LSUSHI holders can stake their tokens to Settlement contract. Every time an order is filled, a certain percentage, let’s say 10%, of limit order fees goes to the Settlement contract. While withdrawing LSUSHi, they get distributed those fees. The percentage is arbitrary so it needs to be adjusted if this proposal is accepted by the community. Also, limit order fee is 0.2% of the amount for an order, so 0.02% is the fee for LSUSHI holders if the percentage is 10%.
LSUSHI initial minting event can be branded as an airdrop and go viral in twitter. Then the demand of SUSHI will rise dramatically.
The beginning of the staking doesn’t have to be the same as the moment of LSUSHI initial minting. We could start opening the staking on Nov. 1st and let the contract begin minting LSUSHI on Dec. 1st. For 30 days, marketing team will announce it to the whole DeFi community so that non-holders of SUSHI get interested in this event. If a SUSHI holder staked from the day 1, he will get the most of it in terms of getting LSUSHI.
- SUSHI has new tokenomics
- It will have an effect of increasing demand for SUSHI
- We could call attention from the whole DeFi ecosystem
- Introducing a new token could bring more complexity for beginners
- Price of SUSHI could dump after the minting starts
- Relayers won’t like this
Do you like this idea?
- I love the idea!
- I like the idea of limit order fee distribution but disagree with new token
- I don’t think it’s a good idea