CoCo Specifics

Contingency and price support

Contingent Convertibles (CoCos) are debt-instruments which can convert into an equity or stock if a specific strike price is hit

Currently a user can unstake sOHM at any time.

This returns OHM equal to their rebased sOHM value and is done in the unstake function.

We propose adding an external contract, PriceContingencyOracle.sol that will:

1. Check spot price

2. Track TWAP price

3. Compare the 2 to gauge if price is moving up or down

The Staking.sol contract will query this external contract and:

1. Deduct a configurable percent from the users unstake if price is moving down

2. Function as expected otherwise

Since we use an external contract, we can always change and upgrade it without needing to redeploy the main Staking contract.

This can then be leveraged to provide better price support and stability to our $CoCo token

Stable yield

We will deploy a MasterChef contract. And add external rewarders for each yield earning treasury asset we want to profit share with the users.

Additionally we will deploy a wrapped-CoCo contract.

Users will be able to stake their $wCoCo tokens and realize profits via the MasterChef contract.

These profits can help them pay down bad debt elsewhere without requiring liquidation of our tokens.