Many have expressed a desire to reward PICKLE stakers something other than sCRV. The most common request is to reward PICKLE but I would like to propose rewarding ETH instead.
The following is my rationale and I would like to hear the community’s thoughts (and suggestions) on this.
Why not PICKLE?
Staking PICKLE to earn PICKLE is a very questionable move. Some in the community have even called this too “ponzinomic” and is simply too off-brand for Pickle.
As @leekuanjew has previously pointed out, it has similarities to the whole “send me 2 ETH and I’ll give you 1 ETH” problem in our space. Put simply, rewarding staking of an endogenous token with more of that same endogenous token provides more ammo for others to criticize the legitimacy of our protocol.
For all intents and purposes, ETH is the standard currency in the Ethereum ecosystem. Many have expressed a desire to purchase more PICKLE from their staked earnings. This makes it easy to claim ETH and do exactly this, but also gives people the flexibility to trade it for whatever token they like.
Rewarding ETH also provides stability because, relative to PICKLE, ETH price is a lot less volatile. Indeed this was the reasoning behind picking sCRV in the first place since it’s basically equal to a dollar (plus a little yield).
Note about ERC20 Compatibility
Note that technically, the reward token would have to be WETH since the staking rewards contract requires an ERC20 token. However, we can make it easy for users to un-wrap WETH into ETH on the same UI.