PoolTogether

PTIP-49: RabbitHole Quest

PTIP-49

Hello PoolTogether community! My name is Ben and I am the Ops Lead at RabbitHole. We have been working on designing a new RabbitHole Quest with @Leighton, @Taliskye, blakeburrito, and TangFeng to further the ongoing relationship between PoolTogether and RabbitHole, and I wanted to post our proposal to get the community’s feedback!

Simple Summary

Create a Quest on RabbitHole to engage with and drive new users to PoolTogether v4, building on the past initiatives with RabbitHole that have driven >10,000 users to PoolTogether.

Abstract

We propose sending 20,000 POOL to RabbitHole to create a Quest that incentivizes users to win a PoolTogether v4 pool, ultimately helping PoolTogether grow their userbase. The first 2,000 users to win a v4 Pool and confirm it on RabbitHole will receive a reward of 8 POOL.

Motivation

The recently launched v4 for PoolTogether was a huge step for the community. Now, it is time to invest in growth and drive users to the protocol, and RabbitHole is the best crypto-native way to engage with web3 users, educate them, and most importantly, incentivize them to become users of PoolTogether v4.

In our first Quest with PoolTogether, RabbitHole increased unique deposits in the USDT Polygon Pool by 300% and the number of POOL tokenholders by 12% (see the full report here). We expect this Quest to improve results from the previous Quest because it rewards users only if they win a prize on PoolTogether v4. By tying the Quest reward to an outcome of winning (rather than just deposit), we encourage users to deposit more funds and leave their deposit in the protocol for a longer time period. For this reason, the reward size is larger (8 POOL per user) than the previous Quest.

RabbitHole is a proven partner of PoolTogether’s and has successfully helped PoolTogether achieve their goals in the past. Through other initiatives on the RabbitHole platform, we have driven over 5,000 users to deposit on PoolTogether Celo and over 6,000 to deposit on PoolTogether Polygon.

Specification

  • This proposal would transfer 20,000 POOL to RabbitHole
  • 16,000 POOL will be distributed to users as rewards for participating in the Quest
  • 4,000 POOL will be held by the RabbitHole treasury to become long-term holders and active governance participants
  • Users will be rewarded if they:
    • Deposit in any PoolTogether v4 Pool
    • Win a weekly prize within the allotted time (2 months)
  • RabbitHole will use the PoolTogether subgraph to verify users complete the Quest and BrightID to verify that reward recipients are unique humans
  • As part of the quest, RabbitHole will create content to guide users through the process and will use Dune Analytics to report on key metrics at the end of the quest (similar to the dashboard created for the last quest).

Status

Vote on PTIP-49
  • For
  • Against

0 voters

4 Likes

They are rewarded with POOL if they win? That’s a great idea! Ensures they stay in for awhile. Well, perhaps not too long: tomorrow the number of daily prizes increases from ~800 to 4267!

3 Likes

Thanks for the proposal.

20,000 POOL is a big ask in my opinion. Have you seen we now have $1 prizes for V4? Are you proposing 8 POOL reward if a depositor wins $1? I feel like the current prizes are quite an incentive as it is.

I see the value of running a campaign like this with Rabbithole in getting on your communities screens. Do you have metrics on how many new unique users you have compared to our last campaign?

Would this campaign be specific/limited to Polygon?

2 Likes

wow! that is awesome with the increase in prizes. the idea is that depositors will stay longer + deposit more with this setup!

2 Likes

thanks for the questions! understand that the prizes are incentive alone - if they weren’t PoolTogether would not exist! But as RabbitHole continues to guide users through their web3 journey, we can help educate them about PoolTogether and incentivize them to try it out for the first time. In the same way, almost all businesses have major expenses to find and engage their users.

Our last Quest with PoolTogether drove 1,000 users to PoolTogether. Our community has grown substantially since then, and as part of the Quest we did with Celo last week, over 17,000 addresses deposited on PoolTogether! Though 2,000 users will get the reward, we would expect many more to participate.

I think the campaign would be primarily focused on Polygon. I would have to check with our dev team, but there might be a way to make it network agnostic.

Let me know if you have any other questions!

2 Likes

I love RabbitHole and have actively supported the previous rounds. The idea to reward stickiness by paying POOL for winning a prize is smart, although somewhat less impactful given the smaller prize tiers being introduced just now. Nice that you intend to also create content. One objection - the cut RabbitHole requests. In this size, 20% or $40k just appears very high in light of the existing partnership and the fact that PoolTogether is an early supporter of RabbitHole and will remain one hopefully for the long term future. I fully get that you are building a treasury that you intend to hodl long term, but it still feels a bit high.

4 Likes

hey Gabor - thanks for the thoughtful question! We highly value our relationship with PoolTogether, but 20% is our standard for all deals and is core to our business model to cover all of our costs, including development integrations. Unfortunately these costs remain, even when it is a repeat partner, and lowering for one deal would set a standard that we are not able to fulfill.

As you mentioned, we hope that this partnership can continue to help our communities grow together, and we are going to be making an increased effort to involve ourselves in governance and community building with our partners!

2 Likes

Hmm; that’s interesting. You refer to the cut as being needed to cover costs.

We’d like to reduce the sell pressure on our token. If you’re going to sell the POOL to cover costs, it would make more sense for RabbitHole to take their cut in USDC.

Is RabbitHole going to long-term hold the POOL, or would it be better for you to receive your portion in USDC?

4 Likes

good clarification and sorry for being unclear @brendan

we promise at least a one-year lock up, but our intent is to hold for much longer than that . We have not sold any tokens that our treasury has received to date. Our intention is to hold the POOL and become active community members over the long haul.

My point earlier in response to @gabor wondering if price could be lowered for a repeat partner was that the costs on our end remain the same so we keep pricing constant, regardless of repeat or not. However, we cover the cost on our end using our own funds, and hold the tokens we receive from Quests for the future!

1 Like

@Leighton shouldn’t we fold this into the upcoming Avalanche launch as well? Rather than focusing on Polygon again.

3 Likes

With increasing project size, you benefit from economies of scale and at some point you will bend to the request from a partner to deviate from the standard. The argument that “this is the standard and we have always done it this way” is just simply not acceptable. I fully get that you need to cover cost for personnel and I like the strategy of RabbitHole to build a diversified treasury through work with other DAOs, but the price model cant remain fixed infinitely and you will agree with that.
Are you aware of our uGMI token that we set up in collaboration with UMA? These are KPI-linked options (based on TVL) and for an onboarding initiative I believe these would be a very suitable payment option, creating upside for you!

6 Likes

Hey Gabor! Totally hear your concern. I want to reiterate that our intention here is for RabbitHole, as a DAO delegate, plans to be a major participant in the governance ecosystems with the protocols that it partners with. The community should look at this as a way to get RabbitHole more involved in the governance ecosystem as opposed to straight revenue. Like @benschecter mentioned, we don’t plan on liquidating the tokens but rather holding it in a treasury in which we can be a DAO delegate.

Let me know if you have any further questions!

1 Like

Hi Brian, you’ve personally taken the time to vote on important PTIPs in the past. That doesn’t go unnoticed! I think RabbitHole is awesome and I think it would be great for all of you to be major participants in our governance system.

Whether we focus on Polygon, Avalanche or a smaller amount of POOL for this campaign, I am all for it. RabbitHole and PoolTogether have had an excellent relationship and I support this PTIP. The details can be worked out, but overall this initiative would be great. I do like @Taliskye’s suggestion of focusing on the upcoming Avalanche PT launch though!

5 Likes

I don’t think this would be necessary if we have the current high prize yield AND Avalanche incentives.

The proposed 20k POOL over 2 months is 333 POOL per day.

I don’t think we need a 20k POOL marketing campaign on Polygon right now. The cost is high and in my opinion we have already saturated the Rabbithole / Polygon audience. I also agree with @gabor that the 4k POOL to cover costs and development integrations is too much. I’ve voted no.

3 Likes

Despite the previous beneficial campaign, I have a couple of issues with the current proposal:

  1. In the new prize distribution setup, the first 2000 winners would likely happen within a day or three given that we distribute more than 4000 prizes per day.
  2. Distributing 8 POOL to someone who wins $1 just feels off. That’s about a 6500% bonus.
  3. I think a 4k POOL cut is simply too heavy, especially because this is a repeated quest and I assume you can reuse a lot of the work you previously did.

Overall I think the budget is too steep for the benefit we are getting from it. I have trouble believing we’d ever earn back the value of 20k POOL.

6 Likes

Wish I knew what to do here

I voted ‘No’ as well. I am a big fan of rabbithole and Layer3 to onboard new users into defi and PT.

But the mechanics for this use case simply don’t work. The prize money ($1) vs distributing 8 POOL is way off…and 4k cut for a single campaign feels too high.

We’d rather use 20K pool as additional prizes on PT itself to award newbie wallets with fun prizes.

2 Likes

I am a big fan of Rabbithole and Brian has been very involved and supportive in our governance. I am not in favour of the proposal as it is currently presented but would like to do something new with rabbithole if the proposal is revamped a bit.

1 Like

Hey everyone! appreciate all of the feedback. wanted to give you all a heads up that we are going to take all of the feedback here and discuss if / how we could change the Quest design to address all of your thoughts! Will keep you all updated

2 Likes

Hey all, we took in some of the feedback and are making the following changes:

  1. 8 → 4 POOL per user (rewards cut in half)
  2. 2000 → 4000 users in total

This way, the task to win the round still remains in tact to drive significant volume to PoolTogether while ensuring that there are new users joining for a low cost.

Would love to make this happen as RabbitHole has already played a major role in the PoolTogether ecosystem as the premier place for user acquisition driving over 20,000+ users across different blockchains

Let us know if you have any feedback!

3 Likes