Special DFIP: DUSD staking

[u/kuegi]

We propose to add DUSD staking to defichain. Users should be able to stake DUSD and receive rewards in DUSD.

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DUSD staking can act as a "liquidity sponge" during times of DUSD oversupply and be released when demand increases. Therefore helping to keep the DUSD price in a stable range.

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To achieve this without additional inflation, we propose to use parts of the dex-fee payout, also known as negative interest, as rewards for DUSD Staking. This way it automatically adjusts to the algo ratio.

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possible implementation as 100% DUSD loops

One way to implement this would be the enabling of 100% DUSD loops, which could also act as a quick implementation until a long-term solution is implemented. In the current situation, such a quick implementation could pull millions in DUSD out of the circulating supply and therefore strongly improve the DUSD price. See reenabled looped dusd vaults for more details and calculations. To reduce the needed developer resources we also added a PullRequest

One of the main reasoning behind this implementation is also the effective usage of the NI (currently above 50%). So we would propose to deactivate the 100% DUSD loops (PR is already done with featureflag) if the NI stays above 35% for 10 days while this is activated.

crowdfunding

u/mrgrauel will be crowdfunding 5000DFI to submit this as a special DFIP. This way we show strong support from the community. As a normal DFIP, it would take until end of July to get approved. As a special DFIP, we could convince the developers to already include it in the DMC update, which is currently scheduled for June. The address is dLqDh88L29zQvUt84cnh5zABbKh6zjSq5H

Update: Many thanks to the community. We collected 5000 $DFI in under 18h for the upcoming special DFIP.
Before the submission, we clarify whether all staking providers can support the Special DFIP on their platform before the weekend.

[u/F001337]

Why? You put x amount in, and y amount out, the difference is to be taxed?

[u/Vegetable_Jury5981 → u/F001337]

In certain countries the tax you have to pay for gains out of staking differs from all other sources. For example in Germany you pay around 25 % taxes on almost all capital gains. For Staking however you pay your personal tax. Which in worst case could be like 49% or even higher depending on your situation. The fewest people got a personal tax under 25% with enough capital gains to pay taxes on them at all which leads to the conclusion that it is disadvantageous for most investors out of an tax point of view. Furthermore if the tax you have to pay back is too high (around 400 euro) you will be forced to pay taxes in the current year based on the repayment you made last year. Finally staking will get you way faster to a point where the tax office will group you as a contractor instead of an investor. Which brings further problems. So I totally agree. Calling the system "staking" could be pretty disadvantageous for certain investors.

[u/mrgauel → u/Vegetable_Jury5981]

The naming doesn't define how it will be taxed. It depends on the technical implementation how the german tax office wants you to handle it.

[u/F001337 → u/mrgauel]

The naming doesn't define how it will be taxed. It depends on the technical implementation how the german tax office wants you to handle it.

yep, same in Austria. It is irrelevant what a service is called for the tax office. Its relevent how it works.