Increase Polygon (USDT/USDC) Reserve Rates

When I first joined the we had a reserve rate set and were earning % APR in MATIC.

Since then it’s undergone a trial of sponsorship rewards and the reserve rate was set to zero. I haven’t found any rational for the reserve rate cut, only the sponsorship rewards.

The motivating factors for joining the pool were essentially taken away. Now it seems, to get any benefit, we need to sponsor and perhaps have a little in the pool.

By restoring the reserve rate to somewhere around 5-15% (personally I think 10% is a sweet spot), this will increase the prize over time and perhaps make it more attractive to be a depositor.

Hello. I think you are confusing terms a bit. I also think you can get the outcome you want by employing your own strategy.

Reserve rate refers to the amount of the interest generated from the yield source that the pool does not distribute as a prize. In fact we are still accruing all of the MATIC from Aave to the protocol which is an effective reserve rate of around 30%.

I think what you are asking for is a drip of WMATIC on the prize pool. The reason we split the drip from the prize pool is actually to make the prizes better for depositors. By allowing you to choose between the APR and the prize we effectively boost odds for deposits by 3x. Instead of 1 in 3000 odds that means a depositor has 1 in 1000 odds. Moreover the sponsor get higher yield (APR) on their deposit because the amount dripped per day stays the same but the amount of total deposits in the pool is less.

If you want to have the same chance to win the prize and earn rewards (APR) then you should split your deposit between the prize pool and sponsorship. You can find the sponsorship on the ‘rewards’ tab of the application. By splitting your deposit you can recreate the same effective yield. For instance if you want 10% APR like you say then put half of your deposit in the sponsorship side (currently at 20% return in POOL) and put the other half in the prize side for a chance to win. Because of the low fees there is no real cost burden to such a strategy.

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No, I do mean the reserve rate, from what I understand the reserve still generates yield that goes towards the prize. So over time increasing the reserve will increase the prize size.

Huh, I think we killed the reserve so the prize would stay tasty for those not in sponsorship. But I can’t seem to find that in the forums quickly, certainly something we could all reconsider and move the reserve rate up if the prizes are appealing even with it on.