Set fairness parameters on V3 prize pools (excluding OHM which governance does not manage) to 0%.
Motivation
With the V4 protocol live we want to make upgrading from V3 to V4 as simple as possible. One way we can do this is to set fairness parameters to 0%, that means people will be able to withdraw freely at any time.
Rationale
The fairness parameters have always been a non-ideal solution to the issue of whales gaming the protocol. V4 permanently fixes the issue by introducing the TWAB and enabling rewarding based on time weighted average deposit balance. Setting fairness parameters to 0% for V3 will ensure no one is confused by them and if anyone accidentally deposits they can easily withdraw. This is especially applicable to pod depositors.
This does of course introduce a possible gaming vector where a large depositor could deposit right before a prize and withdrawing right after but given 1) gas prices and 2) the overall declining prizes in V3 I suspect this wonât be an issue in practice. If it ever did become one, we could always adjust it again.
Technical Specification
If most are in favor, this could ideally be batched in with another proposal to save transaction fees.
Set fairness parameters to 0% for Dai, USDC, UNI, COMP, POOL, SUSHI
Large depositor (with say a million dollars) can definitely game this. Gas at $250 + $250 is not a factor for them at all. If this happens a few times, this could unnecessarily show v3 in bad light.
I am leaning towards voting âNoâ, but will wait to see a few more responses.
Group all v3 pools into 1 section on webpage , with a default minimized button with title âv3 poolsâ . So a user can click â+â to expand all v3 pools and make a deposit.
If above solution is not possible, lets have a simple label to show first pool is V4 and rest are v3 pools.
At the moment I am still unsure about this proposal and I would like to see other opinions on that. The gaming factor could weight hard on users with small deposits.
Is there an option to only allow it 24 before and after a prize draw? Would it be possible to set a cap on the maximum size of deposits that are eligible for a âfeelessâ withdrawal?
I will place my vote after some more thought.
From what I understand the pods have less danger to being gamed, so I am absolutely in favor to set the fairness parameter to 0% on them.
Outside of this proposal I fully support the suggested UI changes by tanman.
Like Tanman said, large depositors can easily exploit this. I believe itâs better to have a âslowâ migration from V3 to V4 than to try to speed it up at the risk of possibly degrading PoolTogetherâs image which could result in people abandoning PT altogether.
I also support the UI changes suggested by Tanman, V3 pools should only be kept as âlegacyâ and be almost hidden to new users
Not much to add apart from what @Tjark and @tanman have indicated.
But if the proposed features are not possible, Iâm 100% against this proposal. I donât trust people to play âfairâ. If they have a chance to make more money they will take it, and it will negatively impact the image of PT.