Strudel Update: All Governance Systems Go!
At last, the Strudel governance update has been activated, allowing gTRDL holders to automatically earn a fixed interest rate on their Strudel Token (TRDL) deposits. This is the culmination of weeks of development effort and proxy contract interactions that we have been grappling with. Now we have a solution for long-term TRDL holders to have a voice in governance while avoiding impermanent loss and earning interest on their investment.
How the Contract Works
The smart contract creates an NFT of the user’s deposit and their unlock date. The lock function creates gTRDL for the user which represent their voting power on governance issues. The length of the lockup determines the amount of gTRDL received with longer timelocks having a bonus.
Unlocking gTRDL after the period ends returns the deposited TRDL tokens back to the user and mints TRDL rewards. The reward received is NOT equal to the gTRDL balance, but depends on a formula that accounts for the length of the lockup and the size of the position. Smaller lockups and longer deposits get extra rewards. The reward distribution can be seen in the graphic below
The interest gained on TRDL deposits starts at 10% for a 100 TRDL deposit for 52 weeks and tapers down as the amount staked increases. This ensures we can guarantee a fixed rate to all users who wish to be more involved with the TRDL community.
Note: There was some miscommunication within the developer team in the early stages of development for this contract that led us to believe that the gTRDL balance was equal to the TRDL unlock reward. Since the front end is ambiguous on this fact, early users are expecting a much higher reward than what is actually implemented. In order to reward early users of the gTRDL contract we will honor the rate shown in gTRDL balance for deposits made before July 1st, 2021.
Governance Roadmap
The main purpose of the gTRDL contract, besides supplying governance rights to investors, is to offer a passive income opportunity that has no impermanent loss. This allows users to maintain their share of the project as we grow. However, there is more benefits to being a gTRDL hoder than just the guaranteed APR. The next step for the Strudel protocol is to create revenue-generating opportunities which will be paid exclusively to gTRDL holders.
We are currently in the initial stages of development for these products and welcome input from the community in ways that we could generate value from our protocol’s assets. Our goal is to turn TRDL into an even more productive asset by leveraging both Bitcoin and the interchain.
-Ataxia
