PTIP-89: Sunsetting PoolTogether V4
PTIP-89 is now live on Snapshot.
Simple Summary
This proposal outlines the plan to wind down PoolTogether V4. The proposal requests the Executive Team to pursue their mandate to execute updated parameters for the balanceCap and Draw Percentage Rate, effectively sunsetting PoolTogether V4.
In addition to this vote, several teams (namely the Exec Team, PoolTogether Inc, Generation Software, and Pooltime) present their coordinated efforts to support users with the migration to PoolTogether V5, ensuring a seamless transition with the aim of making users feel whole.
Abstract
This proposal will bring the sunset of PoolTogether V4 in motion. It calls on the Exec Team to pursue the sunsetting of PoolTogether V4 and use their mandate to:
- Set the balanceCap parameter to zero: This parameter effectively avoids new deposits.
- Execute new DPR parameters to set the effective prize rate to zero: The updated parameters will avoid the distribution of prizes.
- Withdraw all V4 prize liquidity back to the protocol treasury on Ethereum
The proposed transition aims to optimize PoolTogether’s resources, reduce ongoing maintenance costs, and enhance the prize experience for V5 users.
For transparency, the extended action steps of our migration plan are listed below:
| Action | When | Who does it |
|---|---|---|
| Snapshot Vote End | ||
| Launch Migration App | asap | Generation Software |
| Distribute Announcements (60 days heads up) | After positive Snapshot result | Pooltime |
| Disable Deposits in V4 and link to Migration App | asap (when app is live) | PoolTogether Inc |
| XMTP Message to V4 depositors | Next day | Pooltime |
| Daylight Notification to V4 depositors | Next day | Pooltime |
| Execute new DPR parameters to set the effective prize rate to zero | 30 days after the announcement | Exec Team |
| Set balanceCap to zero to avoid new deposits | 30 days after the announcement | Exec Team |
| Withdraw prize liquidity | 60 days after deposits were turned off on UI | Exec Team |
| Redirect V4 App to Migration App | 60 days after deposits were turned off on UI | Generation Software |
| Claw back OP Twab Rewards | 60 days | PoolTogether Inc |
Motivation
PoolTogether V5 is live and requires the community’s focus and attention.
Contrary to V5, the system of PoolTogether V4 requires maintenance, like balancing prize liquidity between chains or managing prize distribution. Every prize draw is a cost to the protocol treasury as the RNG needs funding and the results have to be bridged to all chains PoolTogether V4 is live on.
Additionally, PoolTogether V4 still locks up substantial resources:
- $5.5M in TVL
- $170K in prize liquidity across Optimism, Avalanche, Polygon, and Ethereum
- 20k $OP in unclaimed incentives
By winding down PoolTogether V4, we can capture a portion of its TVL in V5, save costs on infrastructure and maintenance, remove old dependencies, and free prize liquidity. As a bonus, the sunset of V4 unlocks unclaimed OP incentives that can be repurposed to contribute to the growth of PoolTogether V5.
Specification
Overview
This proposal doesn’t require POOL token holders to take any onchain action. All necessary actions can be carried out through the existing mandates of the Execution Team. By voting for on this proposal, POOL holders are requesting the Executive Team to pursue their mandate to execute the above-mentioned protocol parameters.
Migration Game Plan
In addition to this, multiple teams coordinated their efforts to ensure an appropriate sunsetting and smooth migration experience. While this is nothing token holders can vote on, it’s still important for context, to mention the ways the Executive Team, PoolTogether Inc, Generation Software, and Pooltime contribute to the process.
This includes creating a migration interface, promoting the migration, and highlighting the benefits of V5, before winding down V4 apps and infrastructure.
- disable deposits via app.pooltogether.com
- release a Migration App
- promote the migration on various channels
- withdraw all existing prize liquidity to the treasury
- clawback all unclaimed OP rewards
The Migration App includes the following specifications:
- Instructions to migrate for each chain
- Ability to withdraw from V4 for each chain - only withdraw all
- Ability to withdraw from V3 for each chain - only withdraw all
- Ability to one button migrate on Optimism using Portals (maybe - needs r&d)
- Support all the same wallets as existing V4 app
- FAQ for common questions
- Link out to V3 rewards (existing app)
To ensure the necessary distribution of the announcement the following will be done in terms of outreach:
- Article via Mirror
- Announcement via Discord, Twitter, Lens, Telegram & Farcaster
- Notification via Daylight to all V4 depositors
- Notification via Earnifi to all V4 depositors
- XMTP Broadcast to all V4 depositors
- Halftime reminder on all socials
Rationale
The rationale behind this proposal is rooted in the financial overhead associated with V4’s maintenance. The treasury shoulders expenses related to RNG costs, bridge operations, transaction fees, and ongoing work. These costs can be redirected to support the growth and development of the V5 ecosystem.
At the same time, it’s crucial to make the users of PoolTogether V4 feel whole. Before this proposal was drafted, a Request for Comments was presented on the forum. The Council got together to consider and discuss the possibilities at hand. PoolTogether’s team of teams came to the conclusion that our problems are best solved by replacing the PoolTogether V4 App with a Migration App. The new migration app will continue to provide anyone with access to their V4 funds going forward.
Several teams have coordinated their efforts to ensure the best possible migration experience.
This protocol does not yet present a way to cleanly deprecate the prize pools. As a community, we still need to figure out what happens with future yield that is being generated, by any TVL we are unable to migrate. We will have to revisit this topic soon. If you have any ideas or suggestions, please feel free to share them!
Status
The proposal is now live on Snapshot. Please vote!
Anyone holding POOL tokens on Ethereum or Polygon can vote.
