Incentivize Rebase Use

*Incentivize Rebase Use

Basic Summary
Rebase execution costs gas to user. We should compensate the user for this execution.

Motivation
YAMs rebase mechanism doesn’t need to be executed every day, however it does need to be executed routinely. Also, gas costs aren’t free to the user. We should compensate people for their participation, however minimally.

The following solution solves the problem of non-routine rebases and helps cover the cost incurred by rebase execution.

How this works:

  1. YAM Rebase Reward Pot (YRRP) is created
  2. Fractional YAMs are minted per block and allocated to YRRP
  3. User that executes Rebase is rewarded with YAMs in Pot
  4. If no user executes Rebase, the YAMs in Pot remain and YAMs continue to be minted to the Pot

The YAMs continue to stack until the Rebase is triggered. There is no limit to how large the Pot can grow, however Rebase execution probability increases the larger the Pot becomes.

PS: Although I like the idea of automating the process, gas cost can be highly volatile. More funds would need to be allocated in the event of significant increases in gas costs.

Roughly $2 are paid for every 15 gwei. If gas hits 100 gwei, we’re looking at ~$13 for gas. As recent as last week we had 350 gwei fees which would be ~$45. There is no guarantee that the gas fees will stay as low as they have recently.

I think that incentivizing rebases would be a more affordable solution than automation.

Specifications
A YAM Rebase Reward Pool would be created. YAMs would be minted over time and put in the Pot. Upon execution of the Rebase, the Pot’s funds would be released to the user that triggered it.

Poll to Measure Sentiment

  • 10 YAMs per day
  • 20 YAMs per day
  • 30 YAMs per day
  • Zero compensation for execution

0 voters

Your feedback will be greatly appreciated!

I think that incentivizing rebases would be a more affordable solution than automation.

I’m not so sure about this. There are inherent reasons that make having a funded rebase script more cost-effective

  1. If you incentivize everyone to call rebase, it’ll be more likely that multiple people will call it at once, and all those transactions except the first one will fail. The higher the chance someone calls rebase before you, the higher the implied cost of calling rebase, which means you need to pay more to offset those costs
  2. Since it doesn’t matter when in the 1 hour rebase window the rebase happens, a script could more efficiently get rebase called by starting at a low gas price and e.g. increase the gas price by 10% every x minutes until the transaction gets mined
1 Like

I can get behind automation as long as the rebases take place regularly and are done in a way that is reasonably thrifty.