GYSR v3 is now live

Devin Conley
Published in
6 min readJun 30, 2023
Introducing GYSR v3

GYSR has been live on mainnet for almost three years — the protocol has distributed over $26M in rewards to 6000 users across 500 pools and 3 chains. And we have learned a lot more about incentive tooling in the process. We spent the last year rethinking, redesigning, and building the next generation of this technology, dubbed internally as “GYSR v3”.

In the leadup to launch, we have been releasing a series of articles highlighting the new capabilities coming with GYSR v3. This marquee post will serve as both an overview of the release and also an announcement…

We are excited to share that GYSR v3 has officially launched on Ethereum, Polygon, and Optimism!

Without getting too nostalgic, let’s do a quick review of how we got here.

GYSR v1 focused on creating a developer tool that empowered people building on Ethereum with an audited, secure, and battle-tested platform for token distribution and yield farming. The main use case we saw across the first 91 Geysers that were deployed was incentivizing liquidity for token pairs on various automated market makers (AMMs) like Uniswap, SushiSwap, and Balancer.

GYSR v2 introduced new modular architecture where the staking logic and reward logic are each contained within a swappable building block. This generalized our system by allowing users to select from a variety of staking and reward modules when creating a “Pool”, enabling new mechanisms such as friendly rewards (“Fountains”) and NFT staking (“Aquariums”). GYSR v2 also included a new protocol fee model, an entirely new webapp, a new subgraph, and various other enhancements.

GYSR v3 is the latest major release, delivering 9 new and upgraded modules to bring the mechanism count up to 20, while also introducing key upgrades to the core incentives protocol and a large expansion to the fee system. All considered, this means new powerful capabilities, more flexibility, better interoperability, more use cases, and improved tokenomics.

Webapp Updates

The v3 release features a large upgrade to the GYSR webapp, to provide a user-friendly, clean, and intuitive interface to the latest core protocol. This will allow projects to configure, launch, and manage their own incentive mechanisms with zero code.

The webapp also includes a fully pre-built and tailored interface to let end users interact with some of the most popular mechanisms and patterns.

Streaming payroll — “Stream

The Stream is a tool for trustless continuous payments to project contributors. Easily manage project budget and set ongoing payment rates per user. Users can claim earned rewards at any time.

Stream management

Multi token rewards — “Waterfall

Waterfalls allow users to stake an ERC20 or ERC721 to earn rewards. Projects can reward many ERC20 tokens simultaneously within a single pool. This extends the functionality of use cases such as liquidity mining, protocol fee distribution, governance rewards, and art & music royalty routing, to multiple payout tokens.

Waterfall staking

Bond sale — “Reservoir”

The Reservoir mechanism enables users and projects to efficiently exchange assets at dynamic rates set by a bonding curve. This lets projects acquire permanent protocol owned liquidity and lets users acquire project tokens at a discount.

Note: Reservoir webapp integration is coming soon

Core Capabilities

GYSR uses a modular pool architecture where the staking logic and reward logic are each contained within a swappable building block. This generalizes our system by allowing projects to select from a variety of staking and reward modules when creating a pool, based on their requirements.

This combination of a specific staking module and reward module is what we call a mechanism.

So every time a new module is added, there’s a quadratic addition of unique mechanisms. In v3, we have introduced 5 new modules and updated 4 existing modules.

The new modules introduced are:

  • Assignment staking module
  • ERC20 Bond staking module
  • ERC20 Linear reward module
  • ERC20 Fixed reward module
  • ERC20 Multi reward module

And the existing modules updated for GYSR v3 are:

  • ERC20 staking module
  • ERC721 staking module
  • ERC20 Competitive reward module
  • ERC20 Friendly reward module

The chart below represents the possible combinations of GYSR modules and some resulting mechanisms and use cases:

The 4 staking modules and 5 reward modules yield 20 distinct mechanisms

And to elaborate on a few interesting incentive mechanisms beyond those already described above:

Continuous token auction

Distribute a fixed amount of token to buyers over a defined schedule. Let price discovery happen naturally as users stake and unstake.

Fixed price payments

Distribute fixed price payments that vest over a specified period of time. This can be used to pay project contributors or distribute grants.

Constant rate yield farm

Incentivize your community with guaranteed returns. This pattern can be used for traditional staking mechanisms but with a constant yield.

Protocol updates

Additionally, we’ve incorporated some important upgrades to the core protocol contracts as part of the v3 build, improving on flexibility, extensibility, and interoperability:

  • New global Configuration contract for improved protocol extensibility
  • Update to the module interfaces and handshake for more generic rewards accounting. This includes cleaner tokenization of positions.
  • Separation of staking module and reward module controller role for more flexibility
  • New Pool multicall on core contract
  • Update of Factory system for v3 modular pool creation
  • Expansion of events system to be more expressive

v3 Tokenomics

The overall v3 tokenomics upgrade includes a large set of changes to protocol fee system, governance process, and staking mechanics. With the launch of v3, GYSR immediately enables new protocol fee sources and the set up of multi-token holder pools on each network. GYSR is also beginning a trial of limited decentralized governance over designated protocol configuration settings (more akin to temperature checks than to true DAO governance).

Looking ahead, GYSR will also be exploring the introduction of “factory module” staking, a GYSR DAO, and fully decentralized governance. Learn more here.

Security Audit & Testing

Safety, security, and reliability are an ongoing focus for GYSR, and as always, we have taken a multi-faceted approach to this mission for our v3 release.

On the testing front, v3 includes a large expansion of the automated test suite, as this grew to 3,048 test cases. Check out the v3 core contracts and test suite here.

GYSR core automated test suite

Additionally, we engaged the GYSR community for extensive end user testing. This beta testing was a 4-week effort where a select group of users got early access to the v3 platform, ran through a series of detailed tests to exercise individual pieces of new functionality, and provided feedback on the new mechanisms and UI.

We have also updated the GYSR bug bounty program on Immunefi to focus on the latest v3 smart contracts.

Lastly, all of this work culminated in a full audit of the v3 smart contracts by Dedaub. This thorough security review and hardening process took place over a 2+ month period and you can find the final audit report here.

Read more about GYSR’s approach to safety and security here.

Thanks for the continued usage and support of the GYSR platform and we’re so excited to see how everyone utilizes the new v3 functionality — please share with your friends and let us know how you’re using GYSR!

-the GYSR/Passage team