Updates on Community Governance Distribution and Staking Interface
Updates on Community Governance Distribution and Staking Interface
Community Newsletter #28: February 2024
February brought a slew of notable updates within the Increment ecosystem, marking significant advancements and exciting developments. Major highlights include:
Updated community governance token distribution
New staking interface, soon to be added
Community Governance Token Distribution Update
The INCR governance tokens provide community members with the ability to enhance existing protocol parameters, establish new markets, and more. Therefore, it is crucial to ensure that the distribution of governance tokens is targeted towards individuals who contribute significantly, creating a positive impact, and whose values closely align with the Increment ecosystem.
However, unforeseen external factors leading to delays in deploying the Increment protocol on zkSync Era have resulted in a reduced availability of data to identify these individuals. Therefore, in the most recent community proposal, the community conducted a vote and approved the update to Distribution Phases II & III as follows:
Community Distribution II: 500,000 INCR before end of April 2024
Community Distribution III: 1,500,000 INCR before end of April 2025
Peripheral Contracts Audit Complete and New Staking Interface
The peripheral contracts audit is now complete and the reports can be found here:
https://github.com/pashov/audits/blob/master/team/pdf/Increment-security-review.pdf
The features of the peripheral contracts are fundamentally the following:
1) Token emissions for liquidity providers with early withdrawal penalty: Because liquidity providers are one of the most important actors in the system, it would make sense for them to earn additional rewards on top of the trading fees that they earn.
2) Safety module with multiplier and auction: Inspired by Aave’s safety module design, Increment implements a similar architecture for handling reward accrual and distribution for staked tokens, and allows governance to auction a percentage of the staked funds in the event of an insolvency in the system. In other words, stakers will secure the protocol in exchange for earning a base APR in reward tokens (e.g. insurance fees, INCR, etc). The multiplier score can increase the base APR gradually and is dependent on the amount deposited as well as the duration of deposit. Note that a cooldown period before withdrawal comes standard with the safety module. The auction module introduces a mechanism for auctioning off a percentage of staked funds, which can be started by governance.
Presented below is the staking interface design, enabling users to engage with the peripheral contracts. This functionality will be accessible after the deployment of the core protocol and after ensuring its readiness and robustness.
ETHDenver
The Increment community also had a small presence at ETHDenver in February with a few of our contributors participating in events. It is safe to say that there is a surge of developments within the Ethereum ecosystem, making it challenging to keep pace with the sheer volume of advancements.
At the Derivatives Summit at ETHDenver, one interesting talk highlighted the spectrum of current exchange architectures: centralized <> onchain <> decentralized.
The Increment protocol is in the category of decentralized and fundamentally a public good:
All protocol fees are distributed back to different actors on the protocol (eg. liquidity providers earn trading fees or safety module stakers earn insurance fees)
The protocol will be owned by an onchain governor contract that only excutes based on proposals made by INCR token holders
By executing trades on an AMM, it provides fair execution for all and creates a rules-based market making dynamic that is determined by the AMM math and code.
Obviously there are different trade-offs with each architecture, and you should always conduct due diligence before using any products in Web3.
Last but not least, Increment is also now available on Farcaster with the handle @Increment! Feel free to give us a follow: https://warpcast.com/increment
Increment is a decentralized, algorithmic perpetual swaps protocol building on zkSync Era, featuring automatically concentrated liquidity, dynamic fees and parametrizable pools.
To learn more, visit our Docs
For the latest updates and news, follow us on X
Join the community on Discord.