PoolTogether

Financial Reporting ideation

I wanted to set this out as a starting point for discussing the need for periodic/dynamic reporting to the community tracking the utilisation of treasury funds across various initiatives across the PoolTogether ecosystem.

Key motivation:

It’s been incredible to see all of the activity being driven by the exceptional community that PoolTogether has attracted over the past few months - and this is extremely gratifying (as it is over and above what we envisioned when in the early stages of the protocol).

In the past few weeks, there has been a flurry of activity with regards to the evolution of proposals to incentivise sustainable growth and engagement - as seen in some of the proposals for incentivizing NFT pools (@gabor), diversifying the treasury (@leighton), the ideation around community grants committee (@McOso), the proposal to incentivise ETH/POOL LP’s (@frown), KPI options (@TheRealTuna ) in addition to the POOL drips across different pools and the work on modifying the same.

As the protocol continues to expand its scope of activities and attracts more users and more capital, it would be extremely helpful to think about how we can make overall communications between different stakeholders transparent and help people get up to speed on various aspects pertaining to the current initiatives associated with the protocol. It is exceptionally important to ensure that information/assets don’t get fragmented across different activities/multi-sigs and leaves the community in varying states of understanding (esp. new users).

This is probably where reporting would help serve as, imho, a cementing function in order to drive a healthy understanding of the macro/micro indicators pertaining to the protocol and its initiatives.

Key objective(s):

  • Understand the community’s intent to have a more accessible and easy source of truth for the various spending proposals for POOL
  • Provide a common landing ground for understanding the utilisation of POOL across different ideas/themes/multi-sigs - and gauge what would be helpful to have on the same
  • Create practices that would help for better community monitoring of token expenses (open/capex) across different initiatives
  • Iterate upon macro themes and KPI’s - especially as inputs to drive discussion around future initiatives
  • Craft next steps in terms of crystallising some of these inputs into an output (working group/notion page/quarterly report)

A few ideas and open questions:

  • We should learn what we can from other communities - there’s been some incredible work in the YFI, Aave and IndexCoop communities (among many others)
  • It would be good to list out the more important parameters that we should be keeping a look at (and this is where I’d love feedback):
    ** Inflows: rates of pool inflows, reserve inflows + other forms of transactional interest from other participants
    ** Outflows: rate of POOL distribution per (time period/pool), current opex/capex spends + effectiveness of staking/affiliate programs (if any)
    ** Assets: current treasury holdings, current reserves, multi-sigs for different initiatives
    ** Other parameters: correlation of treasury with broader market moves (and associated beta), user growth, grant activity, artist campaign numbers
  • What would be other forms of lagging/leading indicators we could utilise?
  • How would we best present this information to the community? Could be in the form of monthly reports to start out with and then increasingly move on to a realtime dashboard/notion page
  • Contributors towards these topics + compensation rate for the same

'Nuff said from my side - would really appreciate more discussion on this topic and see how we can keep everyone abreast of all developments and help make more data-driven decisions.

8 Likes

I badly want to see this. I feel like I am constantly guessing when it comes to proposing amounts for POOL disbursals. I don’t even really know where to look to analyze a potential deal. everything feels fragmented. In my day-to-day job, I struggle with this as well. I do not have access to the data that could help me do my job better.

I think a live dashboard would be the ideal outcome. In the traditional world, you have to wait for those quarterly investor reports. We are trying to build a better world in crypto, so I think we should strive to build something real-time and transparent. If someone wants to work on some analysis they will be able to work with the most up-to-date data at all times.

I think the parameters to measure you laid out are a great start. I am sure there are people here much smarter than I am who will provide some suggestions on others to track as well. I wanted to show my support for this topic.

thank you for getting this started.

4 Likes

I think this is the perfect time to start this discussion with community lead initiatives paying out in POOL, the Grants Team coming together, the options for POOL liquidity mining - LP and pools, and the treasury diversification item; we’re in the tight spot of what do all these mean, have they helped, and what are they doing?

I think there’s been some good starting points with the Dune examining pool growth, and sharing notes looking at TVL.

I think the Dune system may be able to offer what we’re looking for but we’ll need to hone in on specifically what the community needs to see, and I think publishing something like those you’ve listed is a fantastic idea.

The items you’ve identified already I think are all great. I’d personally want to add:
Outflows: gas expenses (total for each pool at each awarding [both transactions])
Other parameters: growth indicators from a point in time (each governance proposal?) forward - to be utilized to see how different governance proposals may have affected usage.

1 Like

Totally agree on the live dashboard! I just didn’t want to go ahead with the proposal since I figured it might take some time to deploy as opposed to running a few queries on Dune and pulling up a monthly/weekly report.

But - I definitely want to see a report! It provides a really good way to really think thoughtfully about some of the ongoing events in the market, how they’re affecting the Pooltogether protocol and ultimately what might be the things that we should be concerned/happy about and put that in writing. Having a stream of data without someone paying attention to it/thinking about feels like the worst thing!

Also out of curiosity - any of the community members willing to help/step up on this endeavour? Might be good to get an indication of interest as well.

1 Like

I want to add that I really appreciate this writeup, Praneeth. I think you’ve outlined some great reasons to publish cashflows and the treasury.

I want to point out that @sharingnotes has created a simple website to see the reserves

@sarfang has put together a Dune Analytics dashboard that includes the reserve for a few pools.

We’re also working on a site that will display all of the protocol’s holdings. Eventually we’d like it to include expenses as well (once the Chainlink Keeper system is up and running). This should be live in a few weeks.

Additionally, I’ve reached out to the Cryptio team. They have created a service that lets you plug in wallet addresses then reconcile transactions into a chart of accounts. Apparently Aave uses them, so I’m curious to hear more about the solution.

What would be really cool, in my mind, is for us to add all of the PoolTogether addresses to an accounting system. Then we can easily track our finances and inflows / outflows.

Imagine we add the Timelock contract, Vesting contract, and Grants Committee Safe. We could see how much POOL was spent on liquidity mining, audits, developers, hackathons, etc. It would be incredibly useful and allow us to generate financial statements.

For now a custom UI will at least surface the basic treasury holdings, but in the future we’re going to need a lot more firepower.

8 Likes

Want to bump this. Have you heard any more from cryptio

I have access to their V2 beta. It’s cool; not intended for public display of accounting (yet!).

Soon we’ll have a pooltogether.info as well for stats

1 Like

Cryptio has reached out to see whether we’d like to use the service. I’m too busy to take it on, but would @Taliskye, @RegisIsland, or @Torgin like to dig in? I can introduce you to the Cryptio team who can then hook you up with an account.

It gives total transparency into DAO spending, and the Cryptio team is looking to build in the direction it sounds like, as well.

Sure, i can investigate further. would love to have more community members join me.

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Count me in.
@RegisIsland you good with tag-teaming this?

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@RegisIsland - if you’d need a fourth hand, I’d be happy to assist and learn as well.

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Just a follow-up note - how were discussions with cryptio? Would be curious to see if there was any set of learnings that could be shared!

Yes, good question. We’ve signed up for a one year service plan with Cryptio, and @Taliskye is leading the charge.