Temperature Check: Solution for LQ Staking and Aquafarmers Problem

Temperature Check
1

As most of you will have heard, there is a problem with LQ staking and the Aquafarmer boost when using a wallet in multi address mode (most common probably: Eternl):

TLDR: Users with an Aquafarmer NFT and a multi address wallet need to restake all their LQ before the 6th of June to be sure that their AF boost is correctly applied to their LQ stake. That results in the loss of up to two month “LQ staking time” (after six month you will get 30% instead of 5%) for these users. Users who only used single address wallets like NAMI or Lace (or Eternl in single address mode) will not have any problems.

The Liqwid team is determined to “make things right” for the affected users. They also discussed a possible solution in the above-mentioned announcement. I was asked to create a temp check to start a more formal and serious community discussion in the government forum about how to “make things right”.

Full disclosure: I would be affected by any solution, as I had to restake my entire LQ stake to be sure to get the AF boost going forward.

I have a background in computer science, but I do not want to pretend I know much about blockchain technology in detail, so my proposal might not even be technically possible. I wrote this proposal with the assumption that it is possible to set the “staking clock” when a new stake is created.

My proposal would be to try to take this as a marketing opportunity:

Make some waves and twitter posts that Liqwid will finally fully support the AF NFT boost for LQ staking starting on the 12th of June. On that date a new version of the staking page will be published, which will finally show the AF from the wallet that is associated with the stake and there will be information that you have to use a single address wallet to get the boost. Then everyone will be able to check if the AF applies to the stake(s) as expected.

With this “new” LQ staking with AF boost there will be the following incentives for new and existing users:

  1. In the week from the 12th to the 19th of June every newly created stake will get one month on the staking clock – marketing for new users.

  2. Users who had LQ staked before the 31th of may (date of the notion announcement about the problems) will get three months on the staking clock (up to the amount of LQ staked on the 31th) when they restake (to prevent that someone just creates an additional new stake with the same amount of LQ to profit from the free three month but could be tricky to check probably).

My idea is that this should get everyone not only the affected users to restake. That way everyone will also see the new staking page with their AF now working correctly and everyone will be warned that you need a single address wallet.

That would be my first take, but surely there will be problems or exploits that I missed or do not know about. And there is one other thing: the solution to make things right could be completely different if we are talking about 50 affected users compared to 500. I have no idea how many wallets will be restaked until the 6th of June.

I wanted to give you my take on a solution to start a discussion, but please feel encouraged to propose something completely different - so please do not only trash my ideas but try to come up with something better. :stuck_out_tongue:

2 Likes
2

I have staked on Etern + Ledger since day one with multiple addresses. If I make the change before June 6, will I benefit from the 3 months in advance? How is Liqwid going to recognize that it is my staking that is being taken out and put back in? It will do?

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No you would only get the three month bonus when you restake in the “event” period from the 12th to the 19th in my proposal. Like I wrote I do not really know if this is technically possible.

I am sure the team will respond and engage in this thread in time. The goal was to get a conversation started and discuss some ideas and options to make it right for the affected users.

4

Hi,

Group 1 - staked with a single address wallet.
Group 2 - staked with a multi address wallet.

What is the percentage of total stake by group?
What is the value of total stake by group?

Trying to understand the extent of the problem using real numbers.

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5

can we stop users interacting with protocol unless they are in single address mode?

much like connecting to liqwid with no collateral requires it being set before using, can we also prompt when a wallet is in multi-address mode advising user to change to single address mode?

i know this isnt a solution for existing stakers but it would stop any future cases so worth adding imo

6

When I saved the address in SAM mode in Eternl I’ve put the same address with which I previously connected to Liqwid, the one that ends in “/1815’/0’/0/0”. I saw I still have more than 100 pubkeyhashes associated to my new SAM address in Liqwid. The assistance told me that if I need the single pubkeyhash I need to go to cexplorer.io, paste my address and in the “Address Detail” look after “Payment Credential”. That key is the one associated to the new SAM address.

7

You are giving contradictory dates and thereby increasing the confusion to the limit. On the one hand, it is requested that the changes be made before June 6 and on the other that there will be no promotion if they are not made after June 12. Please can you clarify the dates? thank you so much

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This is confusing - “only get the three month bonus when you restake in the “event” period from the 12th to the 19th”

So if I already restaked i get will get nothing !?

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The 6th of June was set by the Team in their anouncement. And this is the only defined date here.

The 12th of June and the one week period was just made up by me, because I thought we will never finish the discussion here and vote on it before the 6th of June. Depending on how long it takes to reach a conclusion and get a vote through it could be well after the 12th.

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Indeed you would get nothing.
The idea here is that everyone is incentivized to restake again in the period from the 12th to the 19th of June.

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Ok, so even if you already re-staked to a single address wallet, you would have to re-stake again in between the 12th and 19th of June to get the bonus. It’s a bit messy but it’s a solution. Given the “complexity” of the solution (i.e. people will get confused) i would prefer a longer period, perhaps two weeks. This would give more people the chance to understand and and benefit from the solution

So I guess the technical difficulty here is how will Liqwid know who had LQ staked before the 31st of May ?

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@castler : Looking at this temp check and trying to understand… In my case I have 3 wallets that today (3rd June) on the teams advice, I un-staked my LQ, reset my Eternl to single address, ‘sent all’ to myself, then re-staked all LQ. Does this temp check propose that my re-stakes would each have 3 months on the clock, so 3 months until 30% rewards ?

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I did the same with my wallet and yes I would restake everything again after the 12th to get the three month on my stake.

The idea is that you and everyone else who had staked LQ before the anouncement of the problem that restakes the same amount in the “event period” will get 3 month on their clock.

That means that every LQ that was staked before the 31th will only need three more month until the 30% reward. This will clearly benefit basically everyone and therefore I hope everyone will restake their LQ in the event period.

I could not think of another way to get everyone to restake and to benefit from a solution. I think this is the best way to get broad community support and a positive vote. And I really think it would be good for the project if everyone would be “forced” to use the staking page again and see for themselves if their AF is working as expected.

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14

Thanks for your efforts in posting this proposal and cheers for the clarification. Yep I think this is a GREAT solution and would most definitely support this and vote YES. Also hoping it would be technically possible for the team to implement in a short time frame.

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The announcement stated that LQ staking went live on April 3rd, so there are only 2 months worth of staking as of today…. However, we may be getting close to 3 months by the time this gets resolved.

Perhaps a simpler solution to this problem is to just set a specific date from which the AquaFarmer boost will apply - such as 19 June (as previously proposed) or July 2nd (3 months) - and reset the 30% APR boost to 3 months and the 50% APR boost to 9 months. All staking rewards up to 19 June (or July 2nd) will be unboosted.

For long term, serial stakers (like myself), sacrificing 2.5-3 months of AF boosted returns at 5% (a very small amount of LQ for most people - for example, I would be giving up about 12 LQ - $50 - LOL) will be more than made up for with new stakes hitting 30% and 50% at a faster rate, and I believe would have wide support from the community.

We can always revisit changing the 30% and 50% timelines later (ie back to 6 months and 12 months). Alternatively, existing stakes as of the AF activation date will be 3 and 9 months and stakes after that date will be 6/12 months.

We should also ensure that the DAO user guide communicates clearly that AF boosts require single address wallets going forward. Users who stake with a multi-address wallet will not be eligible for staking rewards for LQ stakes associated with a different address than the AF NFT.

Short of this, maybe another “fair” approach would simply be to have those affected put in a ticket with the team and have it adjusted on a case by case basis - I just don’t know how this would work in terms of staking time.

Let me know your thoughts.

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Regarding the current issue, I propose the simplest way to resolve it is to reset the staking timer to early april for everyone that has staked before the 6th of june.

I would also like to suggest the following change to improve future user experience. If possible, please include the following function in an upcoming update: Migrate stake and timer to new address
Not sure if there are technical limitations (or require to sign by both old and new address?).

This would cater to users that missed the single-address mode announcement and to users migrating wallets but desiring to preserve their timers.

17

Decent ideas thanks for sharing.

In relation to “reset the 30% APR boost to 3 months and the 50% APR boost to 9 months”, would this result in users who staked from day 1 from a single address wallet being rewarded at 30% possibly by July 3rd in 1 months time, while those same day 1 stakers that unknowingly used a multi address wallet are forced to re-stake and wait another 4 months until approximately October 3rd to receive 30% rewards? IF that scenario eventuated it definitely would not feel fair to those ‘forced to re-stake’.

I agree with the last point you make, and in my view (coming from a position of ‘forced to re-stake’), the fairest approach would be to correct the clocks only for those affected.

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No; the 3 months would start in 03 July (or 19 June) not end on 03 July. Everyone would start at the same time and previous stakes would still be paid out, but not with an AF boost. I hope that clears things up.

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It is not clear to me how the team will know the connection between the previous staking address and the new one. In my case for example I moved my LQs and AF from Eternl to Nami in order to restake with single address… any solution for that?
In case the team will be able to link the addresses of old and new staking for the LQs moved, then it would be sufficient to move the clock, in terms of beginning of staking period, of the new stake to the old one. No need of extra compensation, this would be fair enough.

20

From Peter’s comment in the gov-discussion discord I guess the team do not want to spent much time implementing a complicated solution for this one instance. And that is fair I think.

It seems to me that there are not too many affected users, what about a solution for each individual affected users:

Every affected user opens a ticket in discord. The team will check the claim (when and how much LQ was staked) and issue a special “Liqwid staking boost NFT” and in this there is information about the amount and the staking duration which this NFT grants when staking. This NFT can be used one time when you create a new stake. And the effect would be that the staking time of the new stake would be adjusted according to the NFT.

This would not touch any stakes from unaffected users and would only help the affected users. And the implementation of the feature “using an NFT to adjust the stake clock” maybe usefull later. Again I have no idea if this is feasible.

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