PoolTogether

Matic DAI Pool Parameters

I wanted to kick off this conversation before the DAI pool on Matic switches from stake prize style to having a yield source(AAVE initially).
we will need to decide on a few things for the pool there.

–Reserve Rate
I propose 50% like the L1 DAI pool.

–POOL drip rate
I believe this will require some Dev work to set up a faucet from L1 to Matic. can anyone provide
any more info on this topic?
I am unsure what a good number for this would be. lets hear some ideas.

–Prize Frequency
With gas fees nonexistant on Matic we have much more freedom to award prizers more often
than on L1.
I propose on drawing per 24hrs.

–Number of Winners
Low gas fees help again here.
I propose 10 winners.

Low gas fees provide us an opportunity to experiment with different prize strategies that are not feasibly on L1. i feel that we should try out awarding a larger number of prizes with more frequency. please comment with your thoughts on the above and anything i may have missed.

5 Likes

I think each of the points is very reasonable.

-Reserve Rate:

Makes sense to keep this at the same standard as on ETH

As for drip rate I believe it should be lower than our existing stable coin prizepools on ETH, what amount I don’t know. The reason for that is as we add new prize pools over time having a “constant” drip amount for each will lessen the value of previous ticket holders.

–Prize Frequency
24 hours is good with the 10 winners.

–Number of Winners
10 winners

One of my only concerns which is not fully relevant to this topic yet is with more frequent prizes and # of winners it would not be fun if a large ticket holder (aka whale) wins several prizes per 24 hours and is simply compounding his odds each day. Might have to address the winning rules at some point if it becomes prevalent!

Just to be clear: The stake prize pool cannot transition to a yield pool. The yield pool will need to be a new pool. But with low gas fees, migrating from one to the other won’t be a problem.

For the token faucet I think the way to do it is to bridge a certain amount of POOL over to matic in a lump sum and then set up a normal faucet running on matic entirely. No interaction with L1 needed.

I’m not sure if we want to incentivize the Matic Pools with POOL right away. I think it would be an interesting experiment to see how quickly they grow naturally, just with the promise of low fees. This makes them very attractive for small depositors. (bridging fees are a problem though).

I also think that if we add any new incentivized pools, we need to simultaneously reduce the emissions on existing pools. We can’t just keep increasing our yield farming budget with each new pool added. If POOL gets allocated to a new pool, it needs to get deallocated from somewhere else.

2 Likes

I agree send a lump sum and set a faucet on matic.

I also agree the L1 POOL allocation needs to reduced.

I pretty much agree with everything @Torgin said. I think we should initially run this without POOL incentives and see how much traction it can get. Given that, I would also say we should keep the reserve at 0% for now.

I like drawing every 24 hours (or even faster!) and I also like 10 winners, more fun for more people to win!

I would fine it quite funny if we do a faster than 24h draw as @leighton proposes. Maybe, just because we can, an hourly draw (but reduce the winners). That would be exciting, but maybe it’s a bit too much.

As far as the reserve rate goes, a large part of why this is acceptable is the lootbox and POOL being dripped. We don’t have a lootbox on Matic (AFAIK) and if we don’t have a POOL faucet (I agree with the sentiment of @Torgin here), we really should not take away any part of the price, in my opinion.

I’m not sure it’s a good idea to increase the prize frequency.
Currently APY for USDC deposits on Aave is 1.37% so we can expect a very low prize value.
With such yield percentage, we may need to decrease the number of winners if we want prizes to be more attractive for users.

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Is that the yield of usdc on aave on matic? It’s around ten percent on L1 right? If so I imagine that liquidity will flock there relatively quickly and a strong borrower market will emerge. That will give us the yield level we need to build a reserve. I didn’t realize it was that low currently. I do agree then we should not have a reserve with yield that low. But when that ticks up I believe we should implement a reserve policy.

I also feel that it is imperative to get some POOL liquidity on matic. We can be an early farm there. The opportunity for yield there is sparse. We should establish our farm before we are forced to compete with other opportunities. We don’t have to do something crazy high. A reasonable yield level will be attractive because there isn’t much competition.

I am here for a long time and I am not a whale. Never win here. But for polygon I am waiting to learn how this works. And my vote goes for 10 winers every 24 is good.

Yes, it’s the yield on Aave on Matic. It is now 2.28% so it may get higher pretty quickly.

EDIT: 14.20% now for USDC!

2 Likes
  1. Reserve Rate: I think it should be low for the time being to accrue investment into the pool, even more crucial because the yield is currently pretty low. With that being said I think it should follow whatever governance does, so if the 2.5% is implemented for yield community pools, it should follow that if/when becomes a governance pool. And if/when it becomes governance it would follow the 50% reserve. It would seem weird to have different reserves for different side chains, just a lot of “paperwork”, but I admittedly don’t know the “paperwork” for caveats on side chains.
  2. POOL Drip: If there’s a POOL drip at all it would need to be bridged over and I agree completely with Torgin that this should be low and some time in the future; and that all ETH pools should also be significantly lower. I think something even in the realm of 50 POOL/day is reasonable.
  3. Prize Frequency: Once every 24 hours is probably good for the yield pool, allows some yield to accrue, but I will admit it won’t be as exciting since it won’t be a 100k prize.
  4. Number of Winners: 10 winners, w00t w00t.