Hello, I am bringing over this post from another user on the Discord, reproducing with some edits and my own thoughts. This is intended to be a starting point for community discussion, eventually leading to a formal proposal:
Implementation of Yield Boost mechanism for BPRO token
The goal of this proposal is to implement a staking/booster mechanism which will provide value accrual to the BPRO token.
This proposal aims to implement a staking/booster mechanism that will allow for real use case and demand for the BPRO token outside of governance. The mechanism will reward protocol users as well as holders/liquidity providers.
Something similar to this idea was originally developed and implemented successfully by another project (vault staking protocol similar to yearn) and the code is readily available and audited (Certik). The proof of concept is the same for this application of token value accrual.
I will list the relevant links/medium articles for that project at the end of this proposal.
The goal of this proposal is to introduce a “booster” mechanism to staking the BPRO token - namely, staking BPRO accelerates and amplifies the potential yield of the staker’s assets deposited in the protocol. Users who currently use Bprotocol will have the option to stake BPRO tokens, which will provide a weighted increase of the proportion of the ‘jar’ that these participants receive, up to a defined limit. This could function within the current score system by having a proportional increase in mScore, cScore, etc… based on the amount of BPRO staked. All proportional to the amount of assets deposited in the protocol.
In addition, LP providers from UNI/SUSHI BPRO pools will be able to stake their LP tokens in a vault which can also be boosted through staking.
By allowing for an increase in weighted stake in the pool this will incentivize all participants to stake their BPRO as it would be to their own benefit and can be seen as “increased leverage” to their yield with no risk and also to be on a “level playing field” with everyone else who does purchase it.
Providing the acceptance of the general outline of this idea, further details will be established on the use of boosters to ensure they are not misused and work as capitally efficient as possible.
A user has $10m worth of TVL from Maker that he has brought to Bprotocol. The user can now purchase a booster (by staking $500 worth (just example) of BPRO tokens) to get a 5% increase of his mScore. The extra rewards he gains far outweighs the cost of purchasing/staking so he would be inclined to do so.
An equivalent ‘staked BPRO’ could be issued as a stand-in for holders for governance purposes. This means you’ll be able to stake your BPRO tokens to earn rewards from the utilization of the protocol while also being able to vote on the governance proposals.
The details of the specific proportions/limits of rewards increase can be examined further by the team/community as the main focus of this proposal is to introduce a long term token value accrual mechanism to the BPRO token.
Here is a breakdown of the booster mechanism:
- Each booster level amplifies your bScore by 5%
-There is a limit of 5 (arbitrary number) booster levels but the cost (amt of BPRO required to stake) will scale to your total value deposited
- Once BPRO is unstaked, the increase to your bScore from the booster is taken away, proportionally to the amount unstaked.
The original medium post where this idea originated:
GITHUB with open sourced code for booster mechanism:
What I have outlined here is not exactly the booster mechanism used originally, but the concept of using the token to ‘boost’ yields I think fits very well with the score mechanism B Protocol already has in place, so it may be a better fit. Not trivial to implement technically I am sure, as this isn’t a basic fork and would require some custom integration with the bScores, it’s more of a high-level concept similarity.
Hopefully this post can generate some good discussion and progression on how to move ahead with staking.