ysCVG streaming process
Gm Convergers,
Since the CIP #9 (https://snapshot.org/#/cvg-finance.eth/proposal/0xaf79a9676d871e099cd07b0fce94552cc824680f69b5dbb7d62b0386844051f3) has been adopted, ysCVG rewards will be linearly streamed to CVG lockers. This article aims to portray how the streaming process will operate.
I. Check-in Cycles and streaming schedule
Each streaming period will be preceded by a Check-in Cycle, allowing ysCVG holders to register their ysCVG balance. This Check-in is needed so the streaming contract can get each holder’s balance in real-time, in order to properly stream rewards.
This Check-in Cycle has been decided so everyone has enough time to register his balance before the streaming starts. However, it will be possible to Check-in at any time within a streaming period.
Creating a new lock or extending an existing lock will automatically perform the Check-in.
Below is an illustration showing the Check-in and streaming schedule:
The Check-in will need to be done at each TDE. Gas cost for this transaction will be low. However, we’ll work on an implementation to improve the UX, and remove the need to Checking-in at each TDE
As shown in the figure above, rewards will be linearly streamed post Check-in for a period of 11 weeks.
II. Compounding
Rewards will be accumulated and compounded during a full TDE (12 weeks) before being pushed into the streaming schedule.
The 11-week streaming period will be composed of 3 streams, each one lasting for approximately 25 days.
1/3 of TDE rewards will be distributed during the first stream, and the remaining 2/3 will continue to compound while waiting to be streamed. Then, half of the remaining rewards will be streamed for the second period, while what’s remaining will continue to compound. Then, everything that remains will be streamed for the third and last streaming period of the TDE.
Example:
Let’s say we have 1 000 CRV to distribute.First period ⇒ 333 CRV are streamed for 25 days, and the remaining 666 CRV keep compounding.
At the end of the first period, the 666 CRV became 700 CRV.Second period ⇒ 350 CRV are streamed for 25 days, and the remaining 350 CRV keep compounding.
At the end of the second period, the 350 CRV became 380 CRV.Third period ⇒ 380 CRV are streamed for 25 days.
Having 3 periods of streaming within one TDE will be seamless for users, as rewards will continuously be streamed. This design choice has been made to extract as much value as possible for ysCVG holders. The computation and behavior of ysCVG itself will remain unchanged. No modification has been made on the ysCVG contract.
Thanks for reading, Converger! If any questions subsist, don’t hesitate to reach out to us on Discord!
Have a great day!
Website: https://cvg.finance/
Twitter: https://twitter.com/Convergence_fi
Discord: https://discord.gg/convergencefinance
