Proposed Addition: Staked WLFI (sWLFI) Representation & Utility
To further strengthen the WLFI Governance Staking System and align with its long-term objectives, I propose formalizing the representation and utility of staked positions within the ecosystem:
- Staked WLFI positions should be represented as a non-transferable (soulbound) staking token (e.g., sWLFI), issued via the staking router
- This token should be integrated directly into WLFI Markets (powered by Dolomite) as a recognized collateral asset
- sWLFI may enable borrow functionality against staked positions, subject to appropriate risk parameters and governance approval
Rationale
This addition preserves the core intent of the staking system:
- Maintains long-term alignment (non-transferable, tied to the staker)
- Prevents secondary market speculation on governance positions
- Encourages continued participation rather than exit behavior
At the same time, it unlocks capital efficiency:
- Allows participants to access liquidity without unstaking
- Deepens WLFI Markets liquidity and utility
- Reinforces USD1 demand through borrow-side activity
Strategic Impact
This would position staked WLFI not just as a governance requirement, but as a productive on-chain primitive within the WLFI ecosystem — strengthening both governance participation and capital formation.
This addition is fully consistent with the proposal’s stated goals of incentivizing long-term participation, increasing USD1 usage, and deepening integration with WLFI Markets.