Theia Proposal
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Emission numbers look great. I also agree with the initial distribution. Also agree with governance.
A $5 fee sounds reasonable and competitive. Regarding the max fee of $50, is it too cheap for someone who is using up 80% of liquidity on the destination chain? If cross-chain liquidity is all but dry, I suspect users would be willing to pay more.
The reward model calculations are a little beyond me but the key variables look good.
Does Theia pay CTM for using its network?
Thanks Jerry and Selqui for putting this proposal together.
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@Raini-Ng Thank you for your comments. I will increase the multiplier for using all of the liquidity to 20, so if the base fee is 5 USD (can be chnaged by the Theia team), then the max fee would be 100 USD.
Regarding fees to Continuum - yes Theia pays per byte for sending messages cross-chain and all router operations will need to do this. The fee per byte is set by Continuum and depends on the chain.
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Good job guys it very technical we lucky to have the contributors guiding CTM were it needs to be decentralised and I agree we need Theia for the reasons stated in the proposal full support here !! Can the Theia team decide to move from CTM mpc network to another chain say in search of cheaper fees if CTM voted to increase fees or would they be tied into a contract and always be part of CTM as they were incubated by CTM I think I read right we in this together always ? Right
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@Raini-Ng Thank you for your thoughtful scrutiny. Let's double the max fee penalty factor, so that if the standard fee is 5 USD, the max fee becomes 100 USD.
In the model, I suggested that Theia pays out in THEIA. The supply dynamics of CTM are not really designed for rewarding liquidity provision.
The idea with veTHEIA is that it is on one chain (Arbitrum most likely), but it has an account of liquidity provision by the holder on ALL chains. For a new liquidity provider, they first go to the chain that they wish to provide liquidity on (let's say Fantom for example) and transfer tokens (ETH, USDT etc.) to a vault on Fantom owned by Theia. Back on Arbitrum, they interact with their veTHEIA to make a cross-chain call to add the liquidity in the vault to the router on Fantom and to add a record to their veTHEIA that they have done so. They can then collect THEIA rewards every day on Arbitrum from all chains that they have liquidity on. They can remove their Fantom or other liquidity any time that they want to.
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This has now moved to a Treasury Vote, after integrating the comments from here. Please do vote https://forum.continuumdao.org/topic/25/004-final-vote-theia-proposal
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What's the current idea for how often
- Q, the DAO-decided base reward and
- f, the DAO-decided weight factor
will be adjusted?
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@tomKyle8905 Good questions. These two factors effectively decide how much rewards in THEIA should be allocated from the emissions and what proportion of the rewards go to THEIA stakers vs. liquidity providers. This would be up to the DAO to decide, but since it takes 15 days for a vote, I don't think that they could change more frequently than once per month and in fact for a good user experience, perhaps they should not change too often - at a guess, I imagine that it could be 3-6 months between changes.
Increased usage of Theia leads to higher collected fees and more buy pressure for THEIA and also there are reduced emissions of THEIA over time, meaning that Q should steadily reduce, unless the DAO decide to incentivize liquidity provision.
