Frogs! We'd like to give the YF Link community a small update on the current ongoing status of the governance protocol fee, what work remains to be done, as well as a special surprise for current stakers.
Fee Update
Our developers are currently hard at work in delivering the protocol fee split as voted on by the community last week, and we have made considerable progress towards that goal.
Step 1 - Activating Protocol Fee
Our first step was turning on the protocol fee and receiving shares of LINKSWAP LP. This transaction was made one week ago and gave 100% of protocol fees exclusively to the treasury address. This can be verified by looking at any LINKSWAP LP transaction. Here is an example. Note the Zero value for one of the addresses - we'll get back to this later.
Step 2 - Splitting Treasury & Governance
Our next step was reducing the protocol fee split from the Treasury to 20% of total fee split and transferring the other 80% to a dividend distribution address. This is a temporary measure as we implement new contracts to redeem LSLP right on LINKSWAP (this could not be done until LINKSWAP was deployed on mainnet, as there was no LINKSWAP address to point to). We've successfully implemented this step and the split is now correctly rewarding 20% to the YFL Treasury and 80% to Governance. You can check recent transactions that split LSLP and verify the non-zero value. Here is an example.
Step 3 - Deploying YFL Purchaser Contract
As a final step currently underway, we will be completing and deploying the purchaser contract to properly redeem LSLP tokens on chain and provide dividends to users staking in the YFL governance vault on an ongoing basis. Once this step is complete we will deprecate the Dividend Distribution Address in favor of the currently existing yYFL governance contract.
Does this mean I need to unstake?
No! When we deploy new contracts, we will simply point the existing ones to the new versions, so that users will not need to do any unstake/restake operations.
Will conversions be automatic?
The goal is to let anyone hit the "convert" button to realize the profits of existing LINKSWAP LP tokens and enable those rewards for distribution among the community.
When will this be completed?
We expect to finish step 3 of our governance fee rollout plan by the end of the week.
I am a Liquidity Provider - does this mean I get no fees?
All LPs are unaffected by protocol fees and will continue to enjoy the benefits of trading volumes by supplying liquidity on LINKSWAP. The protocol fee is merely an extra on top for YFL governance vault stakers.
Final Note
The methods we have enabled for the public Dividend Distribution Address that is currently receiving LP means we will be able to redeem those LSLP tokens for trading fees incurred on LINKSWAP as of the activation vote approximately one week ago. This means that all existing stakers of the YFL governance vault are currently earning rewards for staking. We will distribute these rewards through the standard governance vault shortly following the completion and deployment of the new YFL Purchaser contract.
#SEMPERYFL!