Simple Summary

Redistribute fee shares from protocols by default to KWENTA stakers on Optimism.

Abstract

The treasuryDAO will be responsible to capture, bridge, and redistribute all income earned through fee shares from integrated protocols to KWENTA V2 stakers on Optimism.

Motivation

This proposal follows up on KIP-110 and KIP-114, which define that Synthetix fee shares on Base are redistributed to KWENTA stakers. As Kwenta expands to new protocols, such as Perennial (KIP-118), it is proposed that all future fee share income is by default redistributed to KWENTA stakers. If the Kwenta DAO desires fee shares from specific protocols to be used for other purposes, follow up KIPs would be required.

Specification

• This KIP will make the redistribution of fee shares to KWENTA stakers the new default for any future deployments of old and new protocols, starting with Perennial on Arbitrum.
• The distribution threshold by default should be set to 250,000 USDC or equal value in fee share token received by each individual protocol until a superseding distribution method is proposed. This specification would overrule KIP-119.
• Protocols will be provided with a treasuryDAO controlled Gnosis Safe address to use with the Kwenta tracking code to direct rewards to this address. Documentation and support will be provided to assist with this process.
• The system developed for distributing Synthetix V3 Base fee shares (see KIP-114) can be reused for future protocols. The treasuryDAO will manage the Gnosis Safe and oversee the distribution process, while Core Contributors will maintain and adjust the distribution system as necessary.

Disclaimer: For clarification, this KIP solely proposes to share the fee revenue received from future integrators to KWENTA stakers. This KIP explicitely excludes the OrderFlowFee introduced in KIP-122, which aims at supporting DAO operations.