[CL Incentives] Allow early withdrawals for frozen positions #4456
Labels
F: concentrated-liquidity
Tracking the development of concentrated liquidity feature to improve filtering on the project board
Background
We've internally agreed that hard-enforcing freezes by not allowing early withdrawals at all might be a little too constraining for users, even though freezing is a major relaxation compared to bonding already.
The simplest and cleanest approach (both as a mechanism and from an implementation standpoint) seems to be to simply deposit any accrued rewards from an early exit back into its respective accumulator. This effectively causes the early withdrawer to forfeit their earnings such that they are redistributed pro-rata to the existing LPs.
Suggested Design
osmosis/x/concentrated-liquidity/lp.go
Lines 127 to 130 in ccc07c3
Acceptance Criteria
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