Abstract:
For the past month or so, foxfrens.com has been providing an auto-compounding tool for Cosmosverse stakers which directly benefits the DAO through higher delegation rates and faster growth in voting power.
A higher level overview of the tool can be found in the original thread.
Now that Cosmos SDK 0.44, which introduced the authz module, has been tested for a considerable amount of time, and the Cosmos team seems confident in the security of the authz module, I believe we too can feel confident.
The compounding tool has – without a reasonable doubt – has been responsible for the exponential growth in the number of ShapeShift Umee delegators. Over time, especially as the number of delegations grow and the assets staked are compounded, this tool will be responsible for higher revenue rates coming from our Cosmos, Osmosis, Umee, Juno, and future validators.
This feature should be integrated with ShapeShift because it would be foolish not to. With compounded rewards, simple mathematics guarantee higher return rates for the delegators, which ultimately encourages all users to delegate/redelegate to the ShapeShift DAO validators.
Who is the team/project behind the feature? Cosmos introduced the authz feature that allows the safe granting of delegation powers to proxy wallets. eco-stake was the first to implement it with a PoC. foxfrens.com has been auto-compounding for available ShapeShift validators since.
Requirements:
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Seemless integration of the UI with Cosmos assets staking page that will launch.
- Handoff of the full control of the proxy wallet that is responsible for paying for the gas when claiming and re-staking. Highly not recommended to use a new wallet, as hundreds of delegation grants will be lost in the process. There is never more than $3 in the proxy wallet at a given time; only the amount of gas needed to execute the auto-stakes for grantors are needed. In other words, yes, I know it’s not good practice to transfer wallet ownership in this manner, but I really have zero to gain from messing with it post-handoff, nor can I execute any arbitrary transactions on the proxy wallets, and you would have to simply trust that I have destroyed and disposed of keys to the proxy wallet.
Feature Spec and UI/UX
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In addition to the existing core features that is currently being tested and utilized on mainnets, there should be:
Seemless integration with the upcoming Cosmos assets staking page (i.e. keep bothering engineering)
- Consistent UI & UX with the ShapeShift app (i.e. keep bothering product),
- Ledger signing (if Cosmos SDK supports Authz by then); if no support still, CLI signing instructions will be prepared for interested parties that still want to delegate.
UI/UX: Should be a simple change on the validators and delegation page (per network/chain). 1) make the ShapeShift validator look distinct from the rest (like what Osmosis is doing with the fluid staking enabled pools); 2) show higher APY rates for ShapeShift validators vs. the rest of the validators w/ brief explanation on how its being achieved; 3) delegate/stake button turns into “enable compounding” button for delegators; 4) “enable compounding” turns to “disable compounding” which revokes the grant; 5) “disable compounding” turns to “undelegate” or “unstake” … whatevers used throughout other cosmos assets.
Of course, ultimately up to product on the final design.
ShapeShift app seems to be evolving significantly every time I pull; without constantly following each PRs it canbe very easy to get lost in the mix. Might be needing assistance at first to understand how the architecture changed, how plugins are supposed to be implemented, etc.
A higher level overview of the tool can be found in the original thread.
Bounty Details
I am requesting a one-time 25K FOX reward for the completion of this bounty and the successful merge and deployment to the app. This will also retroactively cover the server bills and labor I’ve put in. An amount of 9 OSMO that was initially used to fund the gas fees will be returned to Operations.
25K FOX seems like a bit much~ 1f44c The power of compounding is one of the most powerful forces in finance and over time will have an increasingly bigger impact on the revenue being generated. I took it upon my own volition to get ShapeShift Validators relatively early into the auto-compounding game and is paying off significantly on Umee, and I will no longer lowball my efforts.
Expiration date
No strict deadline, needs to pass engineering and product approval beforehand. Well aware that the earlier it’s done, the better – and the best attempt will be made; however, workstream duties will always take priority. Definitely before summer begins though.
There are many ways to encourage more users to redelegate their votes to ShapeShift as well as just make the ShapeShift app that much more useful for heavy Cosmos users – from stakedrops that puts the APY just over the rest of the competing validators that may also be compounding, allowing users to pay for their own gas if they want to delegate on networks in which ShapeShift is not validating; possibly restake into osmosis / osmosis fluid pools if more permissions are granted and contracts updated, NFT drops, etc etc etc. But ^ this was posted just for ideas sake, and that the plugin can definitely be expanded and improved constantly.
P.S. how do self-proposed bounties work? Does a magical council come in and decide the fate of the request? Or is it the decision of a eng/product leader? Maybe a poll?