📩
Vote Renting (Leveraged Bribing)
Monolith's Vote Renting Module
Diagram of the Vote Renting Module
Specifications/Rationale:
— Users can pay a moSOLID fee to elmo stakers in exchange for a 1:100 bribing leverage (ratio can change/is a placeholder)
— e.g. user pays 10,000 moSOLID (~$3,500 current price) to get 1m votes (~$3m current veSOLID price) for the week
— Partners can convert their veSOLID to moSOLID and use the module for 100x leverage on votes every week
— More enticing than vote bribes since the votes are guaranteed and sell pressure on the bribe token is reduced
— Increased demand for moSOLID is advantageous for Solidly Labs as it offers an improved chance to bribe moSOLID instead of SOLID emissions, thereby reducing the selling pressure on SOLID
— Vote renting capability delivered ahead of schedule to users (part of original Solidly roadmap but otherwise delayed indefinitely)
Additional points:
— Allows users to “experiment” with the solidly system through “leveraged bribing” mechanism; potentially more capital efficient than certain direct vote bribes
— If 25% of veSOLID is rented for a given epoch, that’s ~5m votes, and at a 1:100 ratio, that’s 50,000 moSOLID fee to pay for those 5m votes. If we extrapolate this scenario to 100% of the votes, that’s roughly 200,000 moSOLID for the epoch which is a ~60% APR from the vote rental module alone. Adding to that the consistent Rebases + wETH staking rewards generated each epoch makes elmo very attractive