IIP: 187
Title: gtcETH Fee Split Removal
Status: Proposed
Authors: @allan.g
Reviewers: @Kweiss @MrMadila @0x_Dev @jordan.t
Created: 19 April 2024
Simple Summary
This proposal intends to update the fee split on Gitcoin Staked ETH (gtcETH) from 12.5% Index Coop / 87.5% Gitcoin to 0% Index Coop / 100% Gitcoin. As a result, Gitcoin will receive 100% of the fees associated with gtcETH moving forward.
Motivation
The Gitcoin Staked ETH Index (gtcETH) was launched in February 2023 to provide diversified exposure to the top liquid staking tokens and share staking rewards with Gitcoin in support of public goods funding. An annual streaming fee of 2.00% was ratified for the product, with 87.5% going to Gitcoin and 12.5% going to Index Coop. Index Coop’s share of the fee was intended to offset operating costs for gtcETH and was also equivalent to the original streaming fee on dsETH. gtcETH is effectively a “clone” of dsETH, only with a higher streaming fee to support public goods.
In January 2024, gtcETH was rebalanced entirely into dsETH, replacing the individual LST components with dsETH; this was accomplished with Index Coop’s new Auction Rebalancing mechanism. As a result, gtcETH holders maintain the same diversified LST exposure as before while reducing the ongoing operational burden for gtcETH. Moving forward, whenever dsETH is rebalanced, gtcETH will effectively be rebalanced as well. dsETH will also utilize trust-minimized auction rebalancing powered by UMA’s optimistic oracle system, an added benefit for gtcETH holders.
Given these upgrades, Index Coop would like to forfeit its fee share and direct 100% of gtcETH revenue to Gitcoin. Index Coop will continue to maintain gtcETH as a product and enable access through the Index Coop App (for non-restricted persons).
Specification
- Index Coop will call updateFeeSplit on the gtcETH Fee Split Extension contract and set the _newFeeSplit to 0% (reflects new Index Coop share)
- Gitcoin will call updateFeeSplit on the gtcETH Fee Split Extension contract and set the _newFeeSplit to 0% (reflects new Index Coop share)
- Historical fees will be distributed atomically once new fee split is enacted by both parties
Voting
FOR: DO update gtcETH fees to 100% Gitcoin
AGAINST: DO NOT update gtcETH fees to 100% Gitcoin