The goal of this proposal is to facilitate deeper POOL liquidity so that outside parties interested in buying POOL tokens may do so.
This proposal aims to incentivize POOL liquidity on the decentralized exchange Uniswap. We propose to create a pool on the PoolTogether app for Uniswap V2’s POOL-ETH LP tokens. The treasury will reward participants in this pool with 300 POOL/day for 1 month (31 days), after which the rewards will drop to zero.
Investors want to acquire stakes in POOL buy buying tokens. Currently they are unable to do so due to slippage on exchanges. As of writing, the +2% depth on the POOL-ETH pair on Uniswap V2, the largest venue for POOL trading at the moment, is slightly under $13k.
Incentivizing Uniswap V2 POOL-ETH liquidity providers with POOL will increase liquidity for the POOL-ETH pair and enable investors to buy POOL tokens.
DEX choice: It is better to target POOL-ETH LP token holders from Uniswap rather than SushiSwap. Despite no LP incentives on Uniswap and Onsen reward on SushiSwap, liquidity is slightly greater and volume is over 3x higher on Uniswap.
Rewards: We reward 300 POOL / day. We base this on the performance of the POOL pool: currently the POOL pool has over 25% of circulating POOL staked with a reward of 100 POOL / day. Given the additional cost of locking up ETH to participate in the POOL-ETH LP pool, we estimate that a 3x higher reward should properly incentivize liquidity.
Duration: We limit the POOL rewards to 1 month (31 days) so that we can redefine reward targets based on future changes in liquidity as well as community sentiment.
As LP tokens are ERC-20s, we will use the regular pool builder to create a pool for Uniswap V2 LP tokens and set the winners to zero. The treasury will fund a faucet of 9,300 POOL that drips proportionally to participants of this pool over 31 days at an even rate of 300 POOL/day.
Uniswap’s ETH-POOL LP token address is 0x85cb0bab616fe88a89a35080516a8928f38b518b
Vote on PTIP-10