Skip to content

Commit

Permalink
Readme clarification about distribution rate (#4)
Browse files Browse the repository at this point in the history

---------

Co-authored-by: telome <[email protected]>
  • Loading branch information
oldchili and telome authored Sep 10, 2024
1 parent 525f923 commit 6ce7a1e
Showing 1 changed file with 6 additions and 0 deletions.
6 changes: 6 additions & 0 deletions README.md
Original file line number Diff line number Diff line change
Expand Up @@ -25,6 +25,12 @@ This repository implements a mechanism to distribute rewards vested in a [DssVes

Note that `L1FarmProxy.rewardThreshold` should be sufficiently large to reduce the frequency of cross-chain transfers (thereby saving keepers gas). `L2FarmProxy.rewardThreshold` must also be sufficiently large to limit the reduction of the farm's rate of rewards distribution. Consider also choosing `L2FarmProxy.rewardThreshold <= L1FarmProxy.rewardThreshold` so that the bridged rewards can be promptly distributed to the farm. In the initialization library, these two variables are assigned the same value.

Note that the L2 Farm's reward rate might not be perfectly constant, even if the `L1FarmProxy` and `L2FarmProxy` reward thresholds are set to the same value. With the cross-chain setup there are several ways that can lead to non-constant reward rates. Therefore the following should be taken into consideration:
* The system configuration (durations and thresholds) should be chosen carefully to align the vesting rate with the farm's reward rate.
* Keepers should monitor and call `VestedRewardsDistribution.distribute` on L1 and `L2FarmProxy.forwardReward` whenever their reward thresholds are reached.
* L2 sequencer downtimes or other bridging delays can lead to delayed L2 distribution.
* Failed reward token bridging transactions should be monitored and retried.

## Deployment

### Declare env variables
Expand Down

0 comments on commit 6ce7a1e

Please sign in to comment.