Similar to the Badger proposal/incentive program that’s happening right now (1, 2), I think we should stay ahead of the curve here and engage the Rocketpool community about creating a rETH community pool, with the intention of eventually voting it in as an official pool (with incentives).
I think this is a smart move to start thinking about and working on now, because Rocketpool is going to launch within the next few weeks/month and a PT pool for rETH would be a great way to display the power of composable smart contracts and DeFi lego pieces. Not only with small time stakers now have a way to earn staking yield on ETH deposits as low as 0.01, but they can also immediately take that rETH and deposit it into PoolTogether for a chance to win rewards (and hopefully earn PT tokens through incentives). This will also coincide just in time with PT’s new deposit mechanism that will significantly reduce deposit costs after it’s audit is finished and it gets deployed in 1-2 weeks.
I will happily engage the Rocketpool community on this and faciliate communications if the community likes the idea.
What economic benefit does supplying POOL to this pool provide to PoolTogether?
I’ve always liked Rocketpool, would definitely be curious at how something like this would shape up.
It’s a good question that would need to be discussed more with the RP team. I can think of a few different synergies that can help both protocols. Overall, I see PoolTogether as a protocol that just launched a token and is looking for a way to not only distribute the token, but also drive long term users and TVL into the protocol. I also see Rocketpool as an important protocol for sub-32 ETH holders looking to stake, who will want to incentivize people to stake with the protocol and hold rETH for the long term.
I don’t want to speak for either protocol, but I can see reasons why Rocketpool may want to incentivize a rETH pool with RPL (whether it comes from its treasury or from fees), and why PT would want to incentivize a higher TVL with at least some POOL, or perhaps reserve DAI from other pools, dripping into the pool. This kind of pool could run on a trial basis, like the Badger pool, for 2-3 months and either end after that, or perhaps change its incentivizes/prizes when additional yield sources present themselves. Even if the trial ended without renewal or a worthwhile and more sustainable yield source, PT will have gained at least some new long term protocol users and hopefully gov participants (increasing network effects and TVL in the long term).
I think we should require a reserve rate in any pool that receives pool tokens. The badger pool will have this. It will help grow our treasury in addition to on boarding users
Thanks for the input! Agreed, this kind of cross-over should be complementary and beneficial for both protocols. From PT’s perspective, in my view, they are in a phase now where they are focused on: (1) growing TVL; (2) growing the reserve; (3) creating long term users; (4) increasing the # of pools; and (5) distributing POOL in a way that facilitates each of 1/2/3/4. Without a yield source, perhaps some sort of sponsorship from the RP protocol (from fees or from the treasury), like how the Badger pool is designed, can work. I will discuss more with RP!
I think this is an amazing opportunity. We should get Rocketpool integrated as a yield source for sure.
If we can strike a deal with Rocketpool to have an additional incentive of RPL tokens given to the lootbox in exchange for us incentivizing the pool with POOL, that’s great.
The main prize should come from Rocketpool ETH staking as the yield source.
I’m not sure if it may be a problem that there are no guarantees yet that rETH can actually be exchanged for ETH at all times (it can only be changed back if there is enough ETH in their deposit pool).
Does this mean we need to make it an rETH pool, rather than ETH?
This may make the separation of principal investment and interest harder or impossible .
I think Bredan gave some valuable feedback of items to consider when introducing these semi-governance controlled pools: PTIP-4: Implement Badger Pool As Trial Governance Pool - #14 by Brendan
We do want to tread lightly moving forward to not discount PoolTogether and in a sense give everything to the partnering protocol while PoolTogether receives some new advertising and maybe some reserve without much else.