PoolTogether

PTIP-52: Additional 30 Days of Prize Subsidies

Simple Summary

PoolTogether needs to transfer prize liquidity into the V4 Prize Distributors. This proposal will transfer sponsorship tokens to the executive team, who will distribute the tokens appropriately.

Abstract

This proposal will transfer $350k ScUSDC to the Executive Team.

Motivation

PoolTogether is currently subsidizing prizes across all V4 prize pools. Because liquidity is being consumed faster than interest builds, we need to explicitly transfer tickets into the Prize Distributor contracts.

Specification

Overview

This proposal will transfer ScUSDC tokens to the Executive Team. The executive team will unwrap those tokens as needed and deposit them into V4 prize pools. The Executive Team lead will decide how to balance the funds across prize pools and set up the transactions.

Rationale

This proposal is transferring $350k ScUSDC because that is approximately the amount of prizes given out over one month. This proposal will give us another month of runway.

Technical Specification

ScUSDC.transfer("0xDa63D70332139E6A8eCA7513f4b6E2E0Dc93b693", 350000000000)

Status

  • Yes
  • No

0 voters

1 Like

I find the current voting results quite interesting. I thought there was a decent consensus that we were burning through treasury money too fast and that the current $1M sponsorship APR did not achieve the aspired growth. And yet up to this point all twelve votes have simply voted yes indicating continuation without a single comment.

If we keep burning money at this rate, we’ll have depleted our reserves in less than a year. I would argue that it may be better to first discuss prize distributions and taper off the current APR to a more sustainable one closer to the underlying yield source since we cannot keep it up for a significant amount of time anymore.

3 Likes

I was under the impression from the details of the post that this vote was strictly to top up liquidity. Tapering off or reducing amount of prizes is still an option even if this vote were to pass, right?

2 Likes

Would these $350K be on top of the already assigned $1MM for prize subsidies? Or is this just a rutinary thing to maintain liquidity as @DaBoom said

1 Like

Sure, but I think the sensible thing is to first discuss how to move forward and only then assign a treasury budget. This is doing the reverse.

This is extra as far as I know. Our $1MM is mostly spent, checkout the bottom row in my prize analysis data for how much prize money is currently claimable.

1 Like

if I didn’t get the proposal wrong, we’re talking about holding the prizes for only 30 days, which would give us time to plan and execute some other strategy and avoid depleting our reserves. Let me know if it’s the idea of the proposal.

1 Like

Current state of prize liquidity:

Network PD Ticket Supply Burn Rate
Ethereum $142k Approx $1k / day
Polygon $84k Approx $11k / day
Avalanche $195k Approx $500 / day

For a total of $421k.

Let’s assume we want to rebalance so that we have prize liquidity for 30 days. That means we could move money around like so:

Ethereum - $30k
Avalanche - $15k
Polygon - $376k

Which would mean our maximum runway for the above funds is about ~30 days.

Since gov proposals take a week start to finish, I think we should start the liquidity transfer now. If we have a number of grand prizes go out, liquidity could decrease faster than expected.

I think we need a buffer for safety

Regardless of changes to the prize distribution, we’ll need more prize liquidity.

4 Likes

Oh! So it’s not about increasing subsidizes, just balancing them, in that case I vote yes.

And I would be in favor of making these kind of “management” proposals not require voting at all since maintaining prize liquidity is extremely critical

1 Like

No, it’s not. It’s about having more liquidity so that we have a buffer.

To be absolutely clear:

This proposal extends the existing prize distribution for an additional 30 days. It will transfer tokens to the executive team so that they can be distributed to the prize pools.

Changing the prize distribution is a separate issue.

2 Likes
Network PD Ticket Supply Burn Rate
Polygon $84k Approx $11k / day

Given that we have around 7 days left until catastrophe, I think we have no choice but to discuss a way to move forward after this PTIP

2 Likes

Yes; exactly.

For now we can move some liquidity from Ethereum to Polygon, but we’ll need more subsidies very soon regardless.

Avalanche is much more difficult to bridge because of our multisig, but Synapse Protocol is going to improve their UI so that we can do it easily. Soon we’ll be able to move liquidity back and forth from Avalanche using our Exec Team Safe without any issues. We don’t have an ETA for that yet tho, hence the proposal for additional subsidies.

2 Likes

I agree this is needed but like @drcpu said I think it should be pared with a strategy to slow outflows. I outlined this in great detail here: Prize Adjustment #2

3 Likes

I should also note, coupling this with a prize adjustment this should be an additional ~70 days, not 30 days.

1 Like

I think it’s good that we separate this proposal to add V4 prize liquidity from the prize tiering and distribution decision making

Perhaps we can retitle this from “prize subsidy” to “prize liquidity” for the vote? This proposal is, from my viewpoint, to insure we do not run into a situation where players are trying to claim prizes that are not there. Regardless of prize tiering or total distributions.

It’s also relevant to note that this move of 350k USDC from V3 to V4 is better for the treasury on a higher-level. We should have more on that soon from the Treasury Working Group.

Thanks for putting together this PTIP @brendan, let’s get it up for a vote.

5 Likes

yes, these are great points!

1 Like

Good point! Thanks for pointing that out.