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consider time-vesting rewards by how long the position was in range #224

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moodysalem opened this issue Jan 5, 2022 · 1 comment
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@moodysalem
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moodysalem commented Jan 5, 2022

we can allow rewards for a staked incentive to be time-vested, where the rewards vest for seconds that the position is in range (using the secondsInside return value of the IUniswapV3Pool#snapshotCumulativesInside)

the unvested rewards can go back either to the incentive refundee, or the incentive program; however returning the rewards to the incentive program will result in a lot of MEV due to the impact on unstaking order (e.g. someone unstakes with a bunch of unvested rewards, increasing the effective reward rate for everyone else)

we can be opinionated about how we choose the rewards vesting duration, e.g. incentiveKey.endTime - incentiveKey.startTime

this will disincentive very concentrated and active liquidity for volatile pairs

@moodysalem moodysalem added the enhancement New feature or request label Jan 5, 2022
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moodysalem commented Jan 5, 2022

The reason it may be desirable to vest only by seconds spent in the tick range is it prevents the LP from just adding more capital and leaving the old unused capital staked for vesting, i.e. it does not incentive the active LP using their capital inefficiently

@moodysalem moodysalem changed the title consider time-vesting rewards over the incentive duration by how long the position was in range consider time-vesting rewards by how long the position was in range Jan 6, 2022
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