[PASSED] Compensate Tetranode's veFXS Votes

Summary

Vesta hopes to pay 14000 VSTA per week to Tetranode for 4M veFXS vote to whichever pool that Vesta aims to direct the liquidity incentive to. The term will last 500 days for a total of 1M VSTA distributed over 500 days, with the engagement being able to be halted or renegotiated at will.

Background

Tetra has been an ardent supporter of Vesta since the early days. Besides being an angel investor, Tetra also evangelized the project across many medium, allowing Vesta to be known by many in the space. For the past couple of months, Tetra has been voting his veFXS toward the VST-FRAX pool, upping the liquidity incentive of the pool and helped bootstrap the liquidity depth of VST. Moving forward, the Vesta core contributors seek to formalize this commitment - we think it is proper to compensate Tetra for these vote to keep the incentives going for VST-FRAX pool, or whichever Frax-related pool Vesta deems appropriate down the road.

Concern for Frax dependency

Frax’s USDC dependency - since the Tornado Cash debacle, USDC and any projects with significant USDC exposure such as DAI and FRAX has become hot topics for being potentially censorable and thus lacks the decentralization aspect that many seek in this space. Although Frax as an app seems quite close to Tornado, similar to how only a handful of addresses were blacklisted by using Tornado, it’s unlikely that all of FRAX’s USDC will be blacklisted. Therefore personally I believe it is not a significant risk.

Lack of FRAX liquidity on Arbitrum - in the recent months, Frax has retired its original Curve factory pool 9 and has since migrated its main FRAX liquidity on Arbitrum to FRAXBP, which is essentially FRAX-USDC at Curve pool 41. We are working with Frax on deepening the liquidity of this pool.

Subpar user experience - current user experience of buying and selling VST is relatively difficult as users need to sell into FRAX and eventually out of it. We are exploring the option of creating a Vesta dex aggregator which will allow the easy swapping in and out of VST into other major tokens straight from Vesta’s interface.

Even as the above situation may turn out worse over time for Vesta, as the term lays out below, either party may halt or renegotiate new terms at will.

Terms

Vesta will pay 14000 VSTA per week to Tetra for 4M vsFXS vote per week. The partnership will last for 500 days for a total of 1M VSTA distributed over 500 days using Sablier. The partnership could be renegotiated or terminated by either party at will.

Feedback Period

The feedback process begins now and is expected to end at 2PM UTC on 2022/09/02. After this, a Snapshot vote is expected to be put up at the same time for a three days voting period.

Actions

For Option 1: agree with this term and proceed.

For Option 2: disagree with the term but would love to re-establish new ones.

Against: reject this term.

  • For Option 1
  • For Option 2
  • Against

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For those who vote for option 2, please elaborate on what you think is a better alternative.