Stake DAO

Summary:

The purpose of this proposal is to discuss the UX improvement of Liquid Lockers, by removing a step from the deposit process, through reworking the sdTKN vote delegation process, establishing vote delegation to Stake DAO as the default option.

Context:

Currently, users willing to deposit into Liquid lockers are asked to sign up to 3 transactions: Approve, Mint&Stake and optionally Delegate, the first two being mandatory.

With Liquid Lockers, sdTKN holders have the possibility to delegate the voting power associated to their locks to Stake DAO Delegation (stakedao-delegation.eth) if they have interest in doing so.

When delegated, voting power goes to stakedao-delegation.eth which will then vote on gauge votes to optimise users’ vote incentives.

For votes not involving vote incentives, the delegation votes for what it believes is in the DAO’s best interest.

Rationale:

As of now, voting power is in the hands of the sdTKN holders by default, meaning that they can exercise their voting power by themselves on relevant governance proposals.

However, it has been observed that the majority of sdTKN holders delegate their voting power to stakedao-delegation.eth.

The idea is to set delegation to stakedao-delegation.eth by default, so that users won’t have to sign a transaction to delegate their voting power to stakedao-delegation.eth.

From now on, it’s self-delegation that will require a transaction to be signed.

The first sdTKN where the update would be implemented is sdAngle, to ensure that it operates correctly, and then it will be deployed across all Lockers.

Means:

• Human resources: Minimal developer time needed
• Treasury resources: No treasury resources needed

Voting options:

1. Apply delegation to stakedao-delegation.eth as default
2. Keep ‘self-delegation’ as default.

Proposal specifications:

• Admin(s): SDT holders
• Community feedback: 3 days min
• Voting duration: 7 days