Since approximately October 2020, Rally’s (RLY) Balancer Liquidity Pools (90/10 RLY/USDC, 10/90 RLY/USDC, 90/10 RLY/ETH, 10/90 RLY/ETH) have earned BAL rewards which have been subsequently converted to USDC and are held within Rally’s Treasury. The subject proposal is to distribute the funds currently held in the aforementioned Rally Treasury to LPs based upon snapshots of LP holdings/averages back to the inception of Rally BAL LPs. Distributing Treasury funds would further reward long-term LPs.
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I took a peek at the community treasury wallet here: 0x3b66890289366175c360c1f0e1bafae06276ba03
And it appears there’s currently 9371 BAL still sitting unclaimed. Was there some portion of earned BAL rewards also converted to USDC?
Either way, I agree that Rally should do something with the rewards earned -that’s a big chunk of change -, and the community never settled on anything when we first discussed it back last October. I like your suggestion since I don’t believe that Rally even anticipated receiving these BAL rewards at the inception of the Liquidity mining program with the pools.
How complicated do you think it would be to claim and distribute (or make claimable) all that BAL to the LPs?
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It should go to the LPs that have been helping rally gain traction. Rally has known about these rewards. In the past I have asked and was told its in the Treasury or somewhere safe. The wallet LPs’ addresses should be attainable, after all there is a mechanism that identifies our voting power by the amount of rally we have. I do believe its time to release the rewards to the community
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It shouldn’t be complicated at all with a merkle tree. I agree they should be distributed if there are no other plans for them (sounds like if there are 9100 BAL sitting unclaimed there is not). I look forward to voting on this proposal.
I think the best we could do is align distribution against snapshot data from the time periods when BAL rewards were distributed. In other words, based on weekly snapshots of ownership of LP tokens deposited in our liquidity mining contract at the time that BAL rewards were made available for distribution.
Additionally, I do believe the community multisig has been claiming BAL rewards periodically and converting to USDC held by the community treasury so a look back on that activity would be necessary.
I think it comes down to – should we distribute these to LPs or make the funds available to the community treasury? I think the latter was naively assumed but it is by no means locked in and the funds are still present.
I think I’d be more inclined to vote for proposals that put the funds towards use cases that advance the Rally project but wouldn’t be opposed to distributing to LPs. If/when this goes to a formal proposal, I’d probably abstain from the voting and step in to help implement whatever is necessary based on the outcome of the vote.
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The Treasury Manager has been using the BAL rewards and will continue to use the rewards for community activities (i.e. payments towards grants and transactions approved by the community via Snapshot) on behalf of the $RLY community.
We also support distribution of the BAL rewards to the liquidity providers as discussed in this thread, and are supportive of clarifying this use of BAL rewards in this manner. As @daddyfatsax indicated, there was an assumption that the distributions would go towards the benefit of the $RLY community, but that said, this disposition of the BAL rewards were never specifically allocated in this manner. This said, in order to effectuate an equitable distribution to each liquidity provider pro rata based on how much they contributed to the pool, the below code/program would need to be completed and should also be included within the proposal. The proposal would need to identify a party who would complete the code, test it, and receive approval on the overall cost of this development work before the distribution of BAL rewards can be implemented.
Code details:
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See Balancer mining scripts and claiming for reference
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Required application should mirror computation in Balancer mining scripts (1a) and generate/post a merkle root for token distribution (1b)
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All current BAL token distribution accrues to the liquidity mining contract at 0x9CF178df8DDb65B9ea7d4C2f5d1610eB82927230
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Script should compute the pro-rata share of each depositor in this liquidity mining contract based on the Balancer LP tokens they had deposited
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Upon successful completion of the above, the Community Treasury multisig will claim and transfer received BAL rewards to the merkle distributor each time it is updated with the latest calculations
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We invite participants in this discussion to write up a discussion topic to propose themselves or a third party developer to complete and test this code, and propose an appropriate budget to be paid for by the Community Treasury, after which a Snapshot proposal can be initiated to bring this to a community vote.
As others on the core project mentioned, I’m supportive either way as well as I don’t think we specified when we first ran the project. I’ll also abstain from voting.
We do need help on writing the code for distribution, as all of our core resources are focused on launching some super sweet L1 projects that will really bring Rally Network into much more of the crypto world.
Stealing verbiage from Kevin, but:
I don’t think we specified when we first ran the project. I’ll also abstain from voting.