Introducing Our Very Own Staking Auto-Compound Tool for ShapeShift's #IBCgang ?

What: A tool / bot / contract / whatever you want to call it that allows automatic rewards compounding for staked IBC assets + current delegations overview and management.

https://global.discourse-cdn.com/standard10/uploads/foxcookieco/original/1X/714bf3c91a283ecbf02058aedd13505804b0bda8.png

How: The auto-compounder makes use of a new feature in Cosmos SDK called Authz. This allows an operator to send certain pre-authorized transactions on a delegators behalf (you). In our particular case, two actions are granted specifically for our validators: WithdrawDelegatorReward and Delegate.

The transactions to claim rewards and delegate are paid for and executed by a “proxy wallet” pre-loaded with small amounts of gas. The grant is set to expire 4 months after the initial approval and can be revoked at any time.

Examples:

Granting authz permissions:

Automatic compounding in action:

https://global.discourse-cdn.com/standard10/uploads/foxcookieco/original/1X/a68b20a596c19901bee60dad874c0a870f2cb269.png

When:

  • Osmosis: once a day shortly after epoch

  • Cosmos: once a day because of the relatively low reward rates
  • Umee: twice a day because math

Rewards claimable must meet a certain threshold (math must make sense), otherwise your wallet will be skipped for that run.

Listed APY rates are rough napkin math estimates; more accurate numbers will be worked on soon 2122

Why:

  • Higher APY rates for delegators, consistent & faster growth for the DAO’s validators → more revenue generated for the DAO → everyone wins

  • Testing ground until the eventual move to the ShapeShift platform as a plugin after refactoring + launch of Cosmos; current version is a fork from ecostake.

The network dilemma: Pretty much all #IBCgangsters are probably staking other assets that ShapeShift is not an active validator on; while more networks like Juno, Stargaze, Secret, etc., can be added easily, it doesn’t make sense to pay for your gas if it’s not benefiting our DAO. Currently exploring the idea of a separate grant contract in which the bot operator doesn’t pay for your gas.

Issues:

  • Currently using public RPC endpoints so the tool occasionally times out when the node is congested. The tool will re-attempt until all delegators are checked and grantors are compounded (over 400 delegators on our Cosmos validator…)

No mobile or ledger support yet

  • 1f626
  • I’m serious, don’t even attempt to view on mobile; I paid no attention to responsive design

Without further ado, meet 26a1 FOXfrens IBC 26a1 Cosmonauts, go get dat sweet compounded APY 1f389

https://global.discourse-cdn.com/standard10/uploads/foxcookieco/original/1X/dc809e0083445e1ee5826f22922df06e0c442f53.gif

I saw that in discord there is no current support for Ledger for this though? Is that correct?

Love the concept and think its amazing! <3

1f44f very cool, was able to stake out of my keplr wallet!

Unfortunately at the moment there is no direct ledger support, but if you’re familiar with using CLI you can still grant the bot the permissions by creating your own tx via the authz module in Cosmos SDK.

Interesting fact: out of 67 delegators to our Umee validator, 44 of them have delegated permissions to the auto-stake bot!

  • Re-post from Discord:

    Quick update on our Umee validator – since the launch of the auto-compound bot ShapeShift Umee validator has gone from 15 delegators to 73 delegators in just 3 days, with 47 stakers onboarded through the compounding tool!

    The compound script is run 4 times a day now to get dat sweet boosted apy (*for Umee). Osmosis and Cosmos delegation is lagging behind quite a bit relative to Umee. Not sure if its appropriate to publicize the availability of the tool until its on the shapeshift platform itself, but up to the DAOs discretion I guess.

    Osmosis - 245 delegators, 6 auto-compounding

  • Cosmos - 464 delegators, 4 auto-compounding
  • Umee - 73 delegators, 47 auto-compounding
  • (Haven’t had a chance to look at this yet, but I do want to drop a note in that we should schedule a security review once this goes to Ideation.)

    Hey everyone how everyone doing