PoolTogether

Multi-chain and Multi-protocol drip strategy

Creating a new thread to figure out ideas on optimizing the POOL rewards distribution strategy across multi-chains and various protocols.
(1) Mainnet and other L2 platforms (polygon, celo, optimism, arbitrum…) etc
(2) Major protocols (uniswap, bancor) etc

Just to get some thoughts flowing, here’s my tentative recommendation

(1) Mainnet and other L2 chains - 60% rewards drip to mainnet, 40% to multi-chains.

  • If there is only 1 multi-chain (such as polygon) - it gets all 40% of rewards.

  • When 2nd multi-chain gets added (such as Celo), distribution could look like 25% polygon and 15% celo (to add up to 40%)…etc

(2) Different protocols - such as uniswap, bancor etc for liquidity mining rewards.

  • When a new protocol such as bancor is voted in, uniswap LM rewards are diluted and a portion of them are allocated to bancor.
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Regarding (1) I don’t see too much of a problem, presence on multiple chains is good. I don’t know if we want to incentivize every chain because that may be too costly.

WIth respect to (2), the risk we run is, that by incentivizing multiple protocols on the same chain, liquidity gets fragmented which would incur too much slippage and a party for arbitrage bots. Personally I would prefer choosing one protocol to incentivize rather than 3 or more at the same time.