OIP#1 Building and Enabling Staking for the OBOL Token

[Stakesaurus]

Thanks for incorporating our feedback.

The 6-months time-bound issuance will allow us to reassess the best path forward using actual data from the concerns expressed by everyone. e.g., delegate concentration, fragmented liquidity, depeg risks etc.

As an Obol Delegate with sufficient voting power, I believe this proposal is ready to move to a vote.

[jeronima]

It took quite a bit of time to deal with the complexities of translation and understand everyone’s opinion))
How wonderful it is when there is an experienced team and discussion.

As a Obol Delegate I believe that we are ready for the vote

[Curia]

Thank you @coolhorsegirl and @Toma-ObolAssoc for spearheading this proposal and incorporating valuable community feedback, I appreciate how this proposal strikes a balance between sustainable incentives and practical utility:

• I believe adjusting the allocation to 0.33% of the OBOL token supply over six months is a thoughtful move. It offers us an opportunity to measure the impact of this initiative, and provide a pathway to sustainable approach to staking rewards that fits well with our long-term token economics.

• I’m keen in the concept behind stOBOL as a liquid, yield-bearing token. This means we can tap into DeFi opportunities without giving up our governance power—plus, the auto-compounding feature is a big win in maximizing returns for users.

• The two unlock options—Simple Unlock and Unlock and Stake with One Click—really lower the barrier for us. It’s a practical change that can reduce sell pressure and make it easier for everyone to engage with the protocol right away.

As an Obol Delegate with sufficient voting power, I feel this proposal is well-crafted and ready to move to a vote.

[coolhorsegirl]

Hey @marc_blockshard, cheers for the questions! Will respond to each:

When stObol is sold, does the delegation to a specific delegate remain active? If so, can the new holder of stObol change the delegate?

The stOBOL is no longer delegated. The new holder can change the delegate to whoever they want.

If the delegate cannot be changed, this design could risk persistent concentration of voting power among a few delegates who received outsized support during the airdrop. However, even if delegation can be changed, I’m unsure whether most stObol holders would actively change their delegate, which would still lead to persistent concentration of voting power.

The delegate can be changed.

Good point about concentration. If voting power starts to concentrate over time, Obol governance can fix it by changing the staking incentive. Obol can change staking to add eligibility rules. e.g. only stakers delegating to an active delegate would be eligible for rewards. They could also add a bonus for smaller delegates to incentivize participation.

Does delegation involve a locking period? If so, how long is the lock? If staking Obol requires a long lock-up period to make it liquid, stObol may lose its peg to Obol—similar to what has been observed with LSTs for veTokens that require extended lock-ups.

No locking needed, for the reason you described: veLSTs are vulnerable to de-peg events.

[atomicwhale]

Apologies for the late discussion.

I would like to understand the staked Obol (stObol) better:

• Is the staked token stObol fully liquid on day one? Has a time lock period for stObol been considered, e.g. only stObol locked for a certain period of time is eligible for voting? A fully liquid stObol is prone to market manipulation/gaming.

In general, I am supportive for this proposal.
I think the initial 6-months trial will allow us to reassess and adjust according to market conditions and governance participation.

[stefa2k]

@atomicwhale

Is the staked token stObol fully liquid on day one?

Yes, @coolhorsegirl explains this in the proposal itself:

@coolhorsegirl

This proposal enables a liquid and yield-bearing token, stOBOL. When a Token Holder delegates and stakes their OBOL, they receive stOBOL, which auto-compounds staking rewards. stOBOL can be used across DeFi protocols, allowing Token Holders to retain opportunities in DeFi and restaking while staying engaged in governance and enjoying the OBOL staking yield.

This added utility will act as a supply sink for the OBOL Token at unlock, reducing the sell pressure.

@atomicwhale

Has a time lock period for stObol been considered, e.g. only stObol locked for a certain period of time is eligible for voting? A fully liquid stObol is prone to market manipulation/gaming.

@Toma-ObolAssoc 's answer:

@Toma-ObolAssoc

I don’t think this is an issue linked to this proposal. This concern is true for all onchain voting mechanisms leveraging delegations. I haven’t seen this play out in larger DAOs like Arbitrum much so I wouldn’t be too concerned for the Obol Collective at first but we will monitor the situation and adjust if relevant.

[Max5593]

I have carefully studied all the information including the discussions. The mechanism of work is clear to me.
I believe that this proposal is ready to be submitted to a vote on the network.

[coolhorsegirl]

OIP#1: Building and Enabling Staking for the OBOL Token is onchain!

Voting starts in 12 hours.

Tally | Obol Collective | OIP#1: Building and Enabling Staking for the OBOL...

[coolhorsegirl]

Staking Update

We wanted to share an update on the progress of staking for the OBOL token. Here’s where things stand:

• The initial audit by Offbeat Security has been completed. We will share the full report once we’ve addressed all necessary fixes.
• The public security contest has wrapped up, and judges are currently evaluating the findings. Once this process is complete, we’ll implement any required fixes. You can check out the contest details here: Cantina Competition.
• The public repositories for staking contracts can be found here:
  • Staker
  • stGOV
• Staking is set to launch alongside the OBOL token unlock, expected next month (April 2025).

We’ll continue to keep the Obol Collective updated as we finalize security improvements and move toward launch. Thanks for your support, and feel free to message me @coolhorsegirl on Telegram with any questions.