End POOL distribution to LPs, replace with Olympus DAO Bond program. Continue POOL distribution to POOL pool depositors.
Overall, the community has been making an effort to use POOL distribution more effectively. The protocol governance is already sufficiently decentralized and as such, going forward we should be more focused on using POOL effectively to promote growth and strength of the protocol.
This proposal would do that by 1) ending the 300 POOL per day to Uniswap LPs and replacing it with a “Olympus Pro Bond” program and 2) keeping the 200 POOL per day drip to depositors going.
This proposal implemented in tandem with our other changes means PoolTogether will have fully moved away from yield farming and be building more long term value!
Implementing bonds reduces the need for POOL incentives over time, which only create temporary liquidity and persistent sell pressure. Importantly, bonds incentivize active PoolTogether community members to participate in the program and help distribute tokens to these users similar to traditional liquidity mining programs.
To make it very basic:
- Currently PoolTogether provides 300 POOL per day in LP incentives. This is “renting liquidity” because as soon as the incentives disappear, the LP’s leave. Leaving nothing behind (this happened when incentives decreased from 500 to 300).
- With a bond program PoolTogether can provide a similar amount of POOL per day to people who GIVE their LP tokens to the protocol permanently. This builds long term value and opens a path to reduce LP rewards to zero.
In short, the protocol will be left in a stronger position while distributing a similar amount of POOL to what is being used currently.
Transfer 20,000 POOL to the executive multi-sig to be used to initiate the Olympus Pro Bond Program
Transfer 12,000 POOL to the POOL pool faucet. This will extend those rewards for 60 days
Set POOL LP incentive rate to 200 (reduce by 33%)
Extend POOL LP rewards by 45 days (9,000 POOL)
This has already been extensively discussed and polled here. As such, we will move quickly to voting.
- Support switching to bond program
- Oppose switching to bond program