Let's Get The Pool Party Started!

15

I’m glad you kicked off this conversation @TheRealTuna! There is a lot to digest here, so I’m only going to speak to the points that stood out to me.

POOL Farming

I 100% agree that we should drip POOL out to depositors. Distributing ownership of the protocol is essential for growth and decentralization.

That being said:

  1. I think we need to strengthen our position before distributing POOL to depositors. Ideally we’ll first launch on several more chains and integrate at least a few more partners. Not everyone will stake the POOL that they’ve farmed; they may dump the tokens. I’d like to see us in a stronger position first.

  2. I think our POOL distribution should be automatic by being based on the yield contributed by each vault. This will allow us to distribute POOL in a permissionless way, and in a way that is fully automatic and durable. Anyone can spin up a new vault that receives POOL in proportion to how much yield it contributes. Long into the future.

  3. I think it’s simpler to think about POOL distribution in terms of percentage ownership, rather than trying to target an APR. Even if people think of the results in terms of APR, it’ll be easier to reason about distribution as percentage ownership. For example, if we decide to distribute POOL then we can say we will distribute 40% of the ownership of the protocol across 4 L2s, such that each will receive 10% ownership. The actual value of the tokens and the amounts going out will fluctuate, of course.

  4. I’d like to have the POOL distribution partially retroactive; so that depositors prior to farming are rewarded.

Bootstrapping New Prize Pools

When we launch on new chains we should bootstrap by donating directly to prizes. IMO, this is The PoolTogether Way, and we’ll get a lot more mileage out of 1 ETH than we would by distributing it across depositors as farming incentives. A large portion of the donation will go into the grand prize, and therefore will take months to be released. For depositors it is still higher EV, but in the form of PoolTogether prizes.

G9 has some budget that we can dip into to donate to the next prize pools. We’ll spread it out over several days so that the daily prize isn’t too large and gameable.

6 Likes