Unlocking the Mystery: F-asset pools and FTSO voting

[brianwalden]

There's some required reading before you read this post. This is the section on vote delegation from Flare's original blog post explaining how the network will work:

So first, SDA means spark dependent application - it's basically a smart contract that runs on FLR. Someone who's less intellectually lazy can me can look up the exact definition with all the nuances of you want. The F-asset collateral pools are SDAs. We had assumed that these smart contracts would somehow vote for who you wanted to vote for. But this actually envisions it going the opposite way, the SDA is supposed to delegate its votes to the people it's holding assets for.

We've learned two things that complicate things. 1) Spark has to be wrapped to vote with it and 2) we can only split the vote three ways. Wrapping isn't a huge deal, any FLR that is just sitting around can be stored as WFLR within the smart contact and unwrapped as needed. The big thing is the limit on delegating votes. I can think of three (ha) possible answers:

1) This has been abandoned and you won't be able to receive FTSO voting awards while providing F-asset collateral.

2) While regular wallets can only split their vote three ways, smart contracts don't have that limitation. They can divide up how much FLR their users have put in by percentage and delegate their FTSO votes to each user accordingly.

3) SDAs will get around the limitation by by delegating its three votes to three smart contracts it controls who each delegate their three votes to another three smart contracts and so on until there's a enough contracts to delegate votes to say 100 users. Then it can use that chain of smart contracts to delegate a vote to each user who has contributed at least 1% of the funds to the SDA.

If it happens, that you can actually earn both, it's going to work better for things like the F-asset pools and Trustline where they basically just have a bunch of funds sitting around as collateral. I suspect that Flare Finance isn't going to have as much FLR just sitting around idly.