Incentives the new no loss Tether prize pool with 400 POOL per day. Split that incentive 80 / 20 between sponsorship and deposits. Reduce distribution on the UNI and COMP pools from 255 per day to 50 per day.
This PTIP is motivated to address a few issues:
- Right now a lot of POOL is going to UNI and COMP which have very low yields (less than 1%)
- Whales are often winning the prizes which creates a negative perception
- There is currently no Tether prize pool.
This PTIP improves on the protocol in a few key areas.
It reduces POOL being distributed to the COMP and UNI prize pools. These prize pools add a lot of TVL to our numbers but the interest the earn is tiny (less than 1% each). In contrast, Tether is both the largest stablecoin in the world and also one of the highest yielding assets on lending markets.
It tests out the idea of incentiving “sponsorship” more than “deposits”. “Sponsorship” is money that is deposited into a prize pool and contributes interest to a prize but is NOT eligible to win. By doing this, the whales that are around just to farm POOL can deposit into sponsorship but not have a chance to win. The smaller fish that want a chance for huge prizes can still earn POOL but just at a reduced rate.
I reached the idea of 400 POOL per day simply by using the reduction of UNI and COMP POOL to fund it. I think maintaining some small UNI and COMP distribution makes sense as there is a lot of dollar value deposited in those prize pools.
The 80/20 split between sponsorship and deposits was mostly based on the idea that we want whales to be incentives to sponsor but still offer small rewards to all depositors.
Overall, I felt this is a good way to pilot a new POOL distribution method before applying changes to our larger Dai and USDC pools.
Change drip rate on UNI and COMP prize pools
Implement two new drips for Tether prize pool, one for deposits and one for sponsorship
- The no loss Tether prize pool is already deployed as a community pool
- Technical diligence is needed on how to best implement a POOL drip to sponsorship
- Design revisions will be needed to better display the deposit flow for sponsorship