Lido DAO to Stake MATIC Accumulated from stMATIC Rewards into MATIC Staking Quarterly

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A proposal to stake MATIC tokens from protocol fees into the Lido on Polygon protocol quarterly aims to increase stMATIC market cap, secure the network, and build trust, with an expected 4.43% annual yield in MATIC rewards. The community strongly supports the proposal, which is now documented for tracking, though implementation details and DAO Ops team capacity for 2024 are under consideration.

What is this about?

The discussion revolves around a proposal introduced by Kyros_LOP1 to stake MATIC tokens, which are accumulated from protocol fees, back into the Lido on Polygon protocol on a quarterly basis. The primary goals of this proposal are to increase the market cap of stMATIC, secure the Polygon network further, and bolster trust within the community. The proposal is designed to reinvest the MATIC rewards into stMATIC, with an expected additional annual yield of 4.43% in MATIC rewards1. It was clarified that this would involve staking all MATIC tokens from the treasury wallets every quarter2.

How is the community reacting?

The community has shown strong support for the proposal. Dgusakov highlighted the economic and narrative benefits of the proposal3, while Steakhouse referred to it as a "no brainer" and suggested possible execution methods4. Marin raised a question about simplifying the process to avoid intensive on-chain voting6, to which Kadmil responded that while it's technically possible, the DAO Ops team is currently too busy to design and implement such a process7. Marcbcs indicated that the proposal has been documented and added to the TMC tracking sheet, drawing a parallel to a similar action with ETH, and inquired about the DAO Ops team's capacity to handle this in 20248.

Why this is positive?

  • The proposal is expected to generate an additional 4.43% in MATIC rewards annually, which would benefit the Lido DAO financially1.
  • It aims to increase the market cap of stMATIC and secure the Polygon network, which could lead to increased trust and a stronger community1.
  • The community's strong support suggests a high likelihood of consensus and successful implementation3,4.

Why this is negative?

We have not been able to determine whether this will be negative.

Next actions

The proposal has been added to the TMC tracking sheet for further documentation and tracking8. There is a possibility that the DAO Ops team might be able to take on the task in 20248. However, there is no immediate next action such as a vote or snapshot mentioned in the provided summaries.

Posted 5 months ago

Last reply 13 days ago

Summary updated 9 days ago

Last updated 04/12 00:24