PoolTogether Polygon Rollout!

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The PoolTogether protocol is being deployed to Polygon leveraging Aave on Polygon for yield generation. This is a big milestone marking 1) the first deployment of PoolTogether outside the Ethereum blockchain and 2) a new way to use the protocol with much lower transaction fees.

Due to Polygon being a “layer 2” connected to Ethereum the ability to directly link governance is still nascent. As such, we are following the lead of other protocols like Aave and initially governance on Polygon will be controlled by a multi-sig controlled by the core team. Functionally, this multi-sig will control very little and only be needed to 1) set reserve rates on Polygon and 2) ensure any reserves and / or farming rewards accrued are distributed back to Ethereum governance.

The plan for the initial rollout is to simply have one governance controlled no loss prize pool with the following parameters:

  • Tether as the asset type because interest rate is far higher than any other asset.

  • A daily prize with one single winner

  • Reserve rate set to 0% (but not that all the Matic rewards will accrue to governance so effectively this is the same as the reserve).

  • We are expecting that Polygon will also provide some Matic rewards, those are still being determined.

Of course, the prize pool builder will also be available on Polygon so anyone can create prize pools for the other assets, those will be listed under “community pools”. If community consensus to add new prize pools to the governance pools grows, that can be done as well.

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Why do we only want to have a single prize pool on Matic to begin with?
Are there downsides to having multiple? Clutter on the flagship app?

I would advocate for 4 prize pools: USDT, USDC, DAI, MATIC

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The thinking was just to concentrate the Matic rewards on the one that had the highest yield. I do agree though we should add the others shortly.

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One approach for doing governance on L2 (and other chains, except Ethereum) is to create a new token for each of these chains.

How would that work?

  • Create a special smart contract on Ethereum that would accept POOL tokens.
  • Each user that locks their POOL tokens in that contract, receives back governance tokens for each of the supported chains.
  • Right now 3 chains (besides Ethereum) are supported: Polygon, BSC, xDai Chain. So the user would receive 3 different governance tokens.
  • These tokens would allow users to participate in protocol governance on each of the supported chains.
  • If a user would want to unlock the POOL tokens, they would need to send all of the three gov tokens into the smart contract in one transaction (to receive back the POOL token).
  • (A technical side-note: since PoolTogether would create these tokens, the special smart contract could have unlimited allowance by default to avoid approval transactions.)

This would be one way of approaching this challenge. What do you think about it? If something was unclear, please let me know :slight_smile:

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