Overview:

Upgrade STRK vesting period

The existing system, which vests STRK reward emission over a 12-week period, allows users to claim their vested STRK fully after this period. However, it also imposes a fixed 50% penalty on users who choose to exit their vesting early, regardless of the duration of their vested period.

Market Parameters Adjustment

This proposal aims to strategically adjust market parameters for UNI, COMP, APE, wstETH, BUSD and SXP within the Strike protocol, emphasizing the reinforcement of security measures and ensuring protocol robustness.

Motivation:

Upgrade STRK vesting period

Under the proposed system, the penalty for early exit from vesting will be variable, determined by the length of the vested period. Users will be able to exit their vesting early and receive between 25% to 90% of their rewards. The penalty will decay linearly over the 12-week vesting period, thereby providing a fairer distribution of rewards to users who have vested for longer periods.

Market Parameters Adjustment

In response to current market conditions, Strike has initiated a deliberate reduction of UNI, COMP, and APE markets due to observed lower trading volumes within Strike Finance. Concurrently, slight reductions in STRK market rewards have been proposed to enhance STRK borrows’ repayment. To fortify user revenue, protocol robustness, and security, it is essential to systematically decrease rewards for these markets. Simultaneously, a surge in market volume is proposed to escalate wstETH market rewards. Moreover, due to the recent Onyx protocol exploit and the deprecation timeline for SXP, the XCN market and SXP market will be deprecated. Additionally, as part of the deprecation plan, the collateral factor for the BUSD market will be reduced to 40%.

Market Adjustment Specifications:

UNI

Daily STRK reward: Reduced to 10 STRK (Previously: 15 STRK)

COMP

Daily STRK reward: Reduced to 10 STRK (Previously: 15 STRK)

APE

Daily STRK reward: Reduced to 5 STRK (Previously: 10 STRK)

wstETH

Daily STRK reward: Increased to 100 STRK (Previously: 80 STRK)

BUSD

Collateral Factor: Reduced to 40%

SXP

Collateral Factor: Set to 0%

Reserve ETH for strike community