With V5/Hyperstructure just around the corner we need to think about additional ways to create fun and excitement centered around the POOL token. The POOL token becomes a critical utility to the protocol as all yield earned will now be liquidated to POOL and POOL will now be awarded as the prize. Some users will sell the POOL they have won for their asset of choice while some may consider speculating on POOL and may decide to hold onto it.
I propose that the team builds a POOL vault on each chain where Hyperstructure is active and subsidizes each POOL vault with a non-POOL asset from treasury. This would sort of act as a buyback as the subsidy would be liquidated to POOL and the POOL awarded as the prize. It would also give POOL a yield source that allows POOL holders/winners to particiapte in the grand prize draw. POOL will be actively used on every chain and we now have a reliable bridge in Across that will accumulate bridging fees for the protocol.
If we applied 200K in subsidy split to 4 POOL vaults on Ethereum, Optimism, Arbitrum, and Polygon over a 1 year period we can easily maintain yield well above 5% that would contribute to the prize and help drive TVL and token price growth. Additionally, we should create a zk Sync ERA vault for another 50K in subsidy when we are ready for zk Sync launch. We would be effectively subsidizing the prize, buying back POOL, and increasing POOL demand/utility all at once. In addition we are creating cross chain POOL volume on Across where our protocol earns bridge fees from our liquidity that is provided on Across.
With roughly 5,300,000 POOL circulating that is currently valued at $3.7MM we can assume that if 50% of POOL is deposited to vaults (2.65MM POOL or $1.85MM USD) then our yield on the POOL vaults would be over 13% based on current prices. POOL can more than double in price and still be over 5% yield. Pooltogether treasury still holds 4.7MM POOL between POL and POOL holdings and focusing things around the token can greatly increase the value we can capture. Imagine being a Pooltogether depositor and depositing ETH to win POOL and then depositing POOL to earn even more.
I believe this is the best path to protocol success and would pair well with additional incentives to other participants like bots that liquidate yield. Depositor, Pool holder, Network participants can all win.