Gelato to support Multichain’s Cross-chain Staking Reward Payouts
What’s live right now
Multichain uses a Curve-inspired vote escrowed (VE) token model which incentivizes users to lock up Multichain’s governance token MULTI and mint vote escrowed token (veMULTI) and receive rewards from the system. The concept of vote escrowed tokens grew in popularity during the Defi summer as it incentivized locking up tokens for an extended time (sometimes even years), thereby ensuring the holder’s vested interest in developing the protocol.
veMULTI has an implemented checkpoint function, enabling it to do the necessary accounting and keep track of veMULTI holders eligible for weekly rewards. veMULTI must execute this checkpoint function every three days on all networks supporting Multichain’s veMULTI token so token holders can claim their rewards.
Multichain leverages Gelato to automate the execution of the checkpoint function so that their veMULTI holders can always claim their rewards on time!
Find the task in Gelato at
Looking toward future updates
Vote escrowed token systems like veMULTI rely on the notion that token holders can vote on the allocation of the upcoming token emissions. However, the voting power of veMULTI is a function of several factors, like the amount and the MULTI tokens’ lock period.
Multichain allows users to escrow their MULTI tokens on multiple chains at once. However, simultaneously, Multichain needs an infrastructure to account for token locks on all chains and distribute rewards equitably; this is a complicated feat. For instance, any MULTI locks happening on Ethereum will not be accessible to the smart contract on BNB chain as the information exclusively lives on Ethereum (and vice versa).
For an equitable reward emission, the protocol needs to aggregate the voting power from all supported chains, and once the total reward is calculated, calculate the eligible reward per unit veMULTI and then distribute each user’s share to their address on the respective network.
All this is achieved with the help of the Cross-chain Messaging Protocol called anyCall, being used in conjunction with Gelato to trigger the triggerTask() function available on chains that support Multichain’s vote escrow system.
The triggerTask() function queries the total voting power of all token holders on each chain and sends this data to the ‘hub’ chain as a cross-chain message via anyCall. The contract on the hub chain can then calculate eligible emissions for each chain and automatically transfer the pro rata rewards to the respective smart contracts on the ‘spoke’ chains via another Gelato function. The native token holders can then claim their rewards.
Multichain is building a fully autonomous vote escrowed rewards payment system that allows users to lock their MULTI tokens on any supported chain and still receive their proportionate reward; this ensures that decision-making happens globally.
Gelato Co-Founder Hilmar Orth presented at DevConnect 2022 about a similar use case where lending protocol Abracadabra implemented a multichain reward payment mechanism. Check it out here.
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