GP - stkSEAM time-weighted multiplier & claim-and-compound mechanism

General
1

Simple Summary

This proposal introduces a time-weighted reward multiplier for stkSEAM and a new Claim & Compound action that automatically converts accrued vault-emitted rewards into SEAM and restakes them.

The objective is to strengthen long-term alignment, improve protocol stickiness, and offer a more intuitive, frictionless compounding mechanism for stkSEAM participants.

Purpose

The current stkSEAM design allows SEAM holders to deposit SEAM and earn rewards in the form of Seamless Morpho vault tokens (smUSDC, smWETH, smcbBTC). Users can claim these reward tokens or manually restake SEAM, and there is no minimum lock-up period. While this approach is flexible and user-friendly, it does not fully incentivize:

  • Long-term participation

  • Consistent staking or compounding

  • Stake-weighted alignment with the protocol

  • User-friendly, automatic reward growth mechanics

To improve economic incentives, strengthen alignment, and create a more cohesive staking experience, this proposal introduces:

  1. A linear time-based multiplier that increases staking rewards the longer a user continuously maintains their position (up to 3x).

  2. A Claim & Compound mechanism that automates harvesting, swapping, and restaking rewards into stkSEAM.

Why This Change Matters

At the time of writing, over $201,128 worth of rewards have been emitted to stkSEAM holders. While these rewards benefit users, value alignment remains asymmetric:

  • Users must individually claim reward tokens

  • Then swap each token into SEAM

  • Then manually restake

This multi-step process - although straightforward - creates friction and can lead to:

  1. Capital leakage: users exploring yield opportunities outside Seamless, potentially funding competitors

  2. Value apathy: users letting rewards sit idle, not converting them into deeper protocol participation

  3. Reduced conviction signaling: rewards do not automatically deepen the user’s stkSEAM position

By the Numbers

Since the beginning of Epoch-tracking, Seamless has emitted $201,128 in staking rewards (through Epoch 31). Breakdown:

  • smUSDC: $156,559.70

  • smWETH: $41,742.16

  • smcbBTC: $2,826.30

Using post-Epoch pricing, I backtested how much additional stkSEAM would have accumulated had each Epoch’s rewards been swapped into SEAM and staked immediately:

  • Total hypothetical stkSEAM accumulated: 76,635.72029

This represents ~0.08% of SEAM’s max supply, and would have raised total staked SEAM (as of Epoch 31) from:

  • 4,270,924.17 → 4,347,559.89 SEAM

  • Increasing staked supply from 4.27% → 4.35%

Even without multipliers, simple automated compounding would have added tens of thousands of SEAM to stkSEAM over time.

With time-weighted multipliers, this effect becomes significantly more powerful for long-term alignment.

Proposal

1. Introduce a Time-Weighted Multiplier (1x → 3x over 60 days)

The multiplier applies at the account level (not per stake).

It increases linearly based on continuous staking duration:

  • Day 0: 1x (base rate)

  • Day 30: 2x

  • Day 60: 3x

  • Beyond 60 days: capped at 3x

This multiplier serves as a reward for continuity. The longer a user avoids withdrawing, the more their effective rewards grow.

Reset Logic

To maintain simplicity and integrity:

  • Any withdrawal (partial or full) resets the entire account’s multiplier back to 1x.

  • The multiplier timer restarts from zero immediately.

  • This discourages “mercenary” or opportunistic in-and-out behavior.

  • New deposits do NOT reset the multiplier - only withdrawals do.

2. Claim & Compound Mechanism

Rewards are currently emitted as:

  • smUSDC

  • smWETH

  • smcbBTC

A new Claim & Compound button will:

  1. Claim all (or selected) reward tokens

  2. Auto-swap them into SEAM

  3. Stake the resulting SEAM into the user’s existing stkSEAM position

  4. Preserve the account-level multiplier (not considered a withdrawal)

End Goal

Protocol-Economic Alignment

  • Encourages long-term staking without requiring hard lockups

  • Rewards consistent participation via a meaningful multiplier

  • Discourages mercenary behaviors and short-term extraction

Simplicity & Clarity

  • Account-level multiplier is easy to understand and track

  • Fully transparent reset rule (withdrawal → back to 1x)

Positive Protocol Impact

  • Strengthens the SEAM staking pool

  • Deepens governance alignment

  • Amplifies stkSEAM’s role in protocol loyalty and vote-weighted participation

  • Ensures rewards remain inside the ecosystem rather than leaking out

  • Improves user experience and reduces friction

Feel free to test the mockup UX here: https://seamlessstaking.vercel.app/

3 Likes
2

Appreciate the thoughts and analysis here @Guz_MassAdopt !

  1. In practice I like the auto compound rewards to buy SEAM and restake to up a person’s stkSEAM. What might be the incentive for folks to do so though? i.e. maybe by opting into this restake you receive some slug of additional rewards or some multiplier (your later point). This introduces buy pressure coupled with stake and hold behavior from loyal community members, perhaps there’s a way to incentivize this behavior or thinking on this in a way that rewards stkSEAM holders for opting in to autocompound.

  2. The multipliers I hear you, but I’m wondering how this would work exactly. If all revenue is currently being distributed to stkSEAM holders from the Morpho Vaults, what would a 2x or 3x multiplier give you exactly? Would it be more rev relative to other stkSEAM holders since all coming from same pie or were you thinking the multiplier would be purely additional rewards? If you could clarify a bit here as well that would be helpful.

Regardless, I think giving folks more reasons to hold/stake SEAM and ideally buy via autocompounding to participate in the high APY staking safety module is an idea worth exploring. stkSEAM holder retention is extremely high so it’s values aligned individuals who tend to stake and could benefit from improvements here

2 Likes
3

Thanks for putting this together @Guz_MassAdopt ! I believe that the staking APY is above 30% for months and the total amount of SEAM staked is constantly growing. Given that, seems that SEAM holders are really interested in staking.
Autocompounding sounds interesting, as most stakers are not big holders and I assume they believe in SEAM growth.

As for multipliers, would like to echo @lewis question on where additional rewards will come from? If the idea is to reduce current APY for “beginners”, not sure it is a good idea.

And in terms of simplicity, probably we could start with 2 tiers –> 2 multipliers? And if the system proves to be efficient we could then amplify it to 3 tiers–>3 multipliers? wdyth? I just thinking about technical implementation

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That is an awesome suggestion @Guz_MassAdopt . As you know Im running an experiment of holding 1000$ worth SEAM for a year, compounding weekly. And I must say it is really annoying collecting all the rewards, then swap them into SEAM and stake. Despite fees on Base are low, for low banks like me they do count (in comparison to weekly rewards). SO I would love to see an autocompounding feature.

Agree with multipliers as well, Im here for at least one year, so would appreciate additional rewards

2 Likes
5

Really nice! The ideas around autocompounding and thoughtful multiplier tiers make a lot of sense, especially for long-term holders. <3

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Really great questions! In fact, I believe you partially answer your first question in the second point regarding how could long-term stkSEAM holders be further incentivized to stay staked - via the multiplier. To begin, the multiplier could be purely from additional rewards. For example, this could utilize the 44.5% (probably slightly lower now) DAO - Liquidity mining & community reward allocation - given we’ve exceeded the 60 month unlock schedule there should be a percentage of this allocation that could be appropriated for a pilot stkSEAM multiplier.

7

As for multipliers, would like to echo @lewis question on where additional rewards will come from?

I believe it may be worth exploring appropriating a % of the DAO - Liquidity Mining & Community Rewards allocation to bootstrap a pilot, experimental phase of the multiplier. Until leverage tokens (both on Base and Mainnet) along with the Vault generate sufficient fees to siphon to stkSEAM holders, the former option may be best.

I agree with the simplification suggestion. Offering up to a 2x multiplier to start should suffice - allowing the DAO to monitor performance and overall engagement. This would also alleviate any technical overhead as you mentioned - I agree.

1 Like
8

Hi everyone,

I have a question regarding the unstaking delay with the new time-weighted model.

What will happen if a user triggers an unstake but does not withdraw their SEAM afterward?

More specifically:

Does the timer reset immediately when the unstake is initiated?

If the user changes their mind and leaves the SEAM in the staking contract, will the time-weight multiplier restart from zero?

Or will the system treat it differently since the capital was never actually withdrawn?

I’m asking because it’s common to begin an unstake without finally removing the tokens, and I’d like to understand the exact impact this has on the time-weight mechanism.

Thanks!