This AIP is consolidated from AIP 21.
It proposes to swap minor token pools (e.g. LINK, UNI) and consolidate them with larger token pools. These minor tokens hold significant value in the Rewards contract but is otherwise too small compared to the major tokens (e.g. wETH and USDT) to incentivize stakers to claim from these pools.
Currently, there are 27 token pools in the Rewards Contract of which only the largest 4 to 5 pools are consistently being claimed from (Wrapped tokens: wETH, wBTC and Stablecoins: DAI, USDT, USDC). In order to extract value out of the smaller pools, they should be swapped and consolidated into the major token pools.
At the start of each voting cycle, all token pools worth more than USD1,000 (TBD) will be swapped into a single currency (or multiple currencies from the top 4/5 pools, TBD)
The threshold of each token pool for swap would depend on the gas fees. Swapping pools which are too small would require more gas than its own value to swap. If we can bundle multiple tokens into one swap that might help to reduce gas costs associated with this swap.
A further possibility would be to let this function be called at any time by anyone who wishes to increase the pool sizes before claiming. (Thanks to Don for this idea)
Another option would be to send them to a defi ‘savings’ account which could yield interest which would then be sent back to the Pool contract. (thanks to astholder for this idea)
Thanks to many people who have contributed this suggestion
@Lasse for the original idea - Discord
@Don for the idea of allowing anyone to call the function at any time - Discord
@astholder for the idea of storing it on a ‘savings’ account
@VladislavW @jortmoney and many others who participated in the discussions (please drop a comment below if I missed your name out)
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