[RFC] PTBR-16: The DeFi Collective

Governance PT Budget Requests
1

The DeFi Collective Liquidity and Community Engagement Initiative
Start Date April 1st, 2024
Duration of Work 3 months
Budget $100,000

The DeFi Collective is a non-profit organization, focusing on the enhancement and support of DeFi protocols across various blockchains. There is no equity and no shareholders. The Collective is governed by its members as outlined in our articles of association, publicly accessible here. Operations are overseen by the board members (as depicted above), which act on a non-salaried basis.

The DeFi Collective identifies and self appoints to support protocols and projects aiming to further decentralization in the DeFi. The DeFi Collective does not act as a paid service provider (e.g., custody or management of funds on behalf of third parties), but rather finances its mission and ongoing operations through the receipt of donations, grants and similar contributions as well as through the active management of its proprietary on-chain treasury.

Our proposal aims to leverage our expertise to support PoolTogether’s growth and adoption, focusing on liquidity enhancement for the POOL token and implementing strategic community initiatives.

The DeFi Collective Team Overview

TokenBrice - A prominent figure in DeFi and a cornerstone of The DeFi Collective, he’s known for his pivotal role in shaping the DeFi landscape through his work with leading protocols and his contributions to DeFi governance. Twitter

Nils - With a background in financial engineering, Nils excels in crafting decentralized protocols and enhancing DeFi security. His technical prowess strengthens our mission to advance DeFi’s integrity.

Florian - As our legal and policy expert, Florian leverages his extensive experience in DeFi and traditional finance law to guide our compliance and regulatory strategy, ensuring our initiatives align with legal standards.

Contributors - In addition to our board members, The DeFi Collective is supported by a group of dedicated contributors. These contributors play a vital role in various aspects of our operations, from technical development to community engagement. They bring diverse skills and perspectives, helping to drive the Collective’s initiatives forward.

Scope of Work

Motivation

The drive behind The DeFi Collective’s initiative is the understanding that liquidity is the lifeblood of DeFi protocols like PoolTogether. In the face of growing competition and evolving market demands, bolstering liquidity is paramount. Our focus on enhancing PoolTogether’s liquidity pools is motivated by the goal to augment protocol stability, user engagement, and overall ecosystem vitality.

Goal

The DeFi Collective’s fund request offers significant benefits to the PoolTogether ecosystem:

1. Strengthening Pool Liquidity: Our commitment involves directly injecting liquidity into the POOL/ETH pool and spearheading the establishment of a new POOL/LUSD pool on Velodrome. This increased liquidity is crucial for facilitating smoother transactions and attracting more users to the PoolTogether platform.

2. Promoting Ecosystem Growth: Our strategic liquidity enhancements are designed to not only benefit the pools directly involved but also to signal a strong commitment to the overall health and growth of the PoolTogether ecosystem. This action can attract additional interest and investment into PoolTogether, enhancing its market presence.

3. Community Engagement and Innovation: The DeFi Collective’s involvement extends beyond contributions in liquidity. Our active participation in governance, research, and community initiatives aligns with PoolTogether’s goals of fostering an engaged and innovative DeFi community.

In summary, our collaboration with PoolTogether is aimed at not only at furthering the growth and adoption of PoolTogether, but to contribute to furthering the decentralization in the wider DeFi space.

Milestones & Deliverables

Milestones for The DeFi Collective’s Initiative with PoolTogether

1. Milestone 1: Pre-launch Preparation and Community Engagement

  • Goal: Finalize the strategic plan for liquidity enhancement, including detailed allocation for POOL/ETH and POOL/LUSD liquidity pools. Engage with the community via social media to gather input and build anticipation.
  • Deliverables: A comprehensive pre-launch report and a series of community engagement posts across various platforms.
  • Timeline: 1 week before liquidity deployment.
  • Measurement: Successful development and documentation of the liquidity strategy.

2. Milestone 2: Launch of Liquidity Enhancement

  • Goal: Deploy the allocated POOL and matched ETH into the POOL/ETH liquidity pool and establish the new POOL/LUSD liquidity pool.
  • Deliverables: Proof of liquidity deployment and initial analytics report on pool performance.
  • Timeline: Immediately following the pre-launch phase, expected within 2 weeks.
  • Measurement: On-chain verification of liquidity deployment and initial performance metrics.

3. Milestone 3: Monitoring and Adjusting Strategy

  • Goal: Continuously monitor the performance of the liquidity pools, making necessary adjustments to ensure optimal pool health and performance.
  • Deliverables: Monthly reports, including adjustments made and their impact.
  • Timeline: The activities under this milestone will continue as long as there are active liquidity positions maintained using the grant funds.
  • Measurement: Regular analysis of key performance indicators like TVL, pool balance, and transaction volume.

4. Milestone 4: Community Engagement Through “PoolChad of the Month” Delegation

  • Goal: Utilize the delegation feature of PoolTogether to enrich community engagement by introducing the “PoolChad of the Month” initiative, which rewards community members for outstanding contributions.
  • Deliverables: Implementation of a delegation strategy where $10,000 in USDC is allocated for the “PoolChad of the Month.” Each month, this fund is delegated to a community member chosen for their significant impact, fostering a sense of recognition and motivation within the community.
  • Timeline: The delegation process will commence following the initial liquidity enhancement activities and will be a recurring monthly event.
  • Measurement: The effectiveness of this milestone will be measured by the increased community interaction and feedback, successful delegation of the $10,000 USDC to deserving community members, and the overall positive impact on community morale and contribution levels.

5. Milestone 4: Comprehensive Evaluation and Strategic Future Planning

  • Goal: Conduct an extensive evaluation of the liquidity enhancement initiative and utilize these insights to develop a strategic plan for ongoing support and enhancement of liquidity pools.
  • Deliverables: A comprehensive report summarizing the outcomes, insights gained, and a strategic roadmap for future liquidity enhancement initiatives.
  • Timeline: The evaluation period will begin 3 months after the launch of the liquidity enhancement activities, followed immediately by the strategic planning phase.
  • Measurement: The successful creation of a detailed report that includes a thorough assessment of the initiative and the development of a strategic roadmap for continued support and growth of the liquidity pools.

Timeline

April - June 2024: Full deployment of the liquidity strategy, with continuous monitoring and monthly community engagement initiatives.

Budget

The DeFi Collective requests a total of $100,000, comprising $65,000 in POOL tokens and $35,000 in USDC.

POOL Token Deployment ($65,000):

  • $25,000 in POOL with our proprietary ETH for POOL/ETH Pool: We intend to pair $25,000 of the POOL tokens with an equivalent $25,000 in ETH from our reserves. This action will be executed on the Velodrome protocol, aiming to bolster the existing POOL/ETH liquidity pool in which we are already active participants, with a total of $50,000 in supplied liquidity.

  • $40,000 in POOL for New POOL/LUSD Pool: The remaining $40,000 in POOL tokens will be matched with $25,000 converted from USDC to LUSD, plus an additional $15,000 in LUSD from our funds. This will establish a new POOL/LUSD liquidity pool on Velodrome, with a total of $80,000 in supplied liquidity, diversifying the liquidity options and supporting resilient DeFi projects within the ecosystem.

USDC Allocation ($35,000):

  • Community Engagement and Delegation ($10,000): We allocate $10,000 in USDC to be deposited into PoolTogether under the “PoolChad of the Month” initiative. This aims to reward members for their significant contributions, fostering a collaborative and innovative community spirit.

  • Liquidity Seeding ($25,000): The remaining $25,000 in USDC will be swapped for LUSD to pair with the POOL tokens for seeding the new POOL/LUSD liquidity pool, alongside our additional contribution of $15,000 in LUSD.

Amount Token
35000 USDC
162500 POOL

Assuming a POOL price of 0.40$

Ecosystem Support Assurance

:rotating_light:As part of our dedication to DeFi’s growth, we maintain a strict policy of not selling any tokens we receive, focusing on their long-term value to the ecosystem.:rotating_light:

2 Likes
2

Proposal looking good! :slight_smile:
Got a couple of questions:
Who exactly will custody the funds at DeFi Collective? (I guess it’s a multi sig, who are the signers/addresses ?)
Why LUSD LP ? POOL corralates with ETH and a LUSD LP would incur more IL asfaik. Most LP providers would also prefer ETH I think so that they can still profit from an increasing ETH price instead of LUSD which stays at 1$.
Can we cancel/end the project at some time and how would that work, what happens to the funds in different scenarios?
I like the delegation part! No questions here, only wanna add that it’s possible to assign a representative that can do delegations when using the multi delegator, so we could give the DeFi Collective a delegation budget without needing to send the funds.

Wanna say that I rly like the work of the DeFi Collective and appreciate that you are asfaik currently bribing and voting for the POOL/WETH LP on Velodrome which has helped a lot with POOL liquidity on OP.

1 Like
3

I feel like some additional context is needed as to the motivations behind the LUSD-paired liquidity, given that 65% ($40k POOL + $25k USDC) of the funds in this proposal would be going towards that.

Is this simply because the DeFi Collective believes that liquidity specifically is in high demand? Or is this to be paired with a future/existing proposal with Liquity to also help out their community?

I personally feel that in either case, bolstering POOL/WETH and LUSD/ETH liquidity would be more beneficial for both parties, but am happy to be convinced otherwise.

2 Likes
4

“Who exactly will custody the funds at DeFi Collective? (I guess it’s a multi sig, who are the signers/addresses ?)”

The DeFi Collective’s funds are secured with a multisig SAFE with a 2/4 setup, including board members NILS, Florian, TokenBrice, and a shared key between Abmis/Luude, comprising three board members and two contributors. The funds will be managed under the treasury and liquidity management wallet for operational purposes, with accounting and receipt through grantsfortheants.eth.

“Why LUSD LP ?”

The motivation behind establishing an LUSD liquidity pool alongside the existing ETH pool is to diversify liquidity sources.
LUSD provides a stable and immutable liquidity option, excellent liquidity on Velodrome against USDC and USDT for efficient swaps, boosts volume across both pools, and facilitates arbitrage opportunities, thereby enhancing overall volume.
This strategy aims to develop volume through both a stable and a volatile pool, improving the ecosystem’s dynamism.

“Can we cancel/end the project at some time and how would that work, what happens to the funds in different scenarios?”

Direct fund management for others is beyond our scope. As a non-profit, our funds management is guided by a clear mandate: received funds, including POOL tokens, are considered donations and are never sold. Our principles and promises stand firm, diverging from them would betray our core values, ensuring we conduct ourselves with unwavering honesty and integrity.
Our engagement with PoolTogether prioritizes liquidity enhancement, and any potential project adjustments will be made with full transparency, aligning with our core mission.

We utilize POOL tokens to improve liquidity. Our own contribution has been an acquisition of 27000 POOLs worth $30,000. Moreover, for the last two months, we have been bribing the POOL/ETH pool with 250 OP each week. We plan to bribe the future pool too.

Holding 6,000,000 VELO in voting strength, we’re dedicating 5%-10% of our votes to the POOL/ETH pool. The grant will allow us to boost our voting engagement to 10%-15% across all POOL-inclusive pools.

“Delegation”

TokenBrice would gladly serve as the DeFi Collective’s representative for delegations. He’s also looking forward to joining the Community Call tomorrow, where he’ll be available to address any questions you may have. :fire:

2 Likes
5

The rationale behind adding LUSD-paired liquidity is twofold: to strengthen the bond between LUSD and PoolTogether and to diversify our liquidity approach. This effort to incorporate LUSD into PoolTogether serves as a precursor to potentially establishing a dedicated LUSD pool on PoolTogether, enriching the platform’s liquidity landscape.

While the POOL/LUSD pool supplements our liquidity strategy, our primary focus remains on amplifying the POOL/ETH pool, which continues to be a cornerstone of our liquidity framework.

With the LUSD/ETH liquidity pool already performing strongly and on track to double in size due to our concerted efforts, including significant bribes and votes, we aim to refine and expand its role in a diversified and dynamic liquidity ecosystem.

Feel free to join tomorrow’s Community Call and direct any questions to TokenBrice, who will be present to provide answers.

Also, I encourage everyone to review our reports, including the 1st Quarter Summary and January’s report. February’s report will be available soon for further insights.

2 Likes
6

GM, TokenBrice from the DeFi Collective here. Thanks to @CookingCryptos for articulating the proposal.

I’ll be attending the Community Call tomorrow, happy to discuss there how the Collective is supporting PoolTogether and how this proposal would help to raise the collaboration to the next level, giving fuel to scale up the liquidity strategies already implemented, as well as enabling the Collective to harness PoolTogether for its community engagement thanks to the delegation, strengthening the ties between the two communities: looking forward to it!

3 Likes
7

Adding some info here post-community call where we had some good discussions;

It is possible that by pairing POOL with another token (not just WETH) we are creating more arbitrage opportunities around the POOL token, promoting higher volume and thus fees, etc.

As far as tokens to pair with POOL go, LUSD is not a bad choice. Although the expected IL there for liquidity providers is still somewhat of a concern.

With that in mind, my support for this proposal has increased :slight_smile:

8

Thanks for this proposal. And thanks to the DeFi Collective for incentivizing liquidity on Optimism.

I am a POOL delegate and have been involved with POOL liquidity matters around the protocol for some time.

I think it would be great if this proposal was more forward looking. We have published plans to deploy on Arbitrum, Base, and Ethereum. The most recent roadmap is Optimism April, Arbitrum May, and Base in June. On Arbitrum and Base we currently have no POOL liquidity. Volumes on POOL remain relatively low across all chains. I do not think we need a lot of liquidity but we do need a strategy that takes these plans more into consideration.

Could the DeFi Collective present a strategy for cross-chain liquidity that includes Arbitrum and Base with the Optimism plans? Perhaps best to even consider the whole picture including Mainnet. It was mentioned today on the community call that The Collective has voting power on both Ramses (Arbitrum) and Aerodrome (Base). With a more holistic approach I think we will be better positioned through this year as we grow the new protocol across chains Governance can be a bit of a process so our preparation now can save work down the road.

3 Likes
9

Thanks for the proposal, @CookingCryptos, and thanks for joining the community call yesterday, @TokenBrice. It’s been great chatting and learning more about the intentions behind this budget request.

The proactive engagement in this process is to appreciate! You’ve been paying it forward:

  • entry to the community by market buying POOL
  • building of the initial POOL/WETH position
  • bribing voters and supplying a sizable veVELO vote
  • Brice being a long-time advocate for PoolTogether
  • making the proposal very PoolTogether’ish

The Pool Chad of the Month is a well-thought-through addition!

While I can’t speak to the details of how the LP strategies should be I sense a highly fertile ground in getting the Defi Collective in as a contributor. The proposal doesn’t feel like paying someone for a service and poof they’ gone - but rather getting you in the boat with us long-term.

Layer 2 asset custody and liquidity are still an unsolved issue for PoolTogether. With the Executive Team retiring this will only grow on us.
I agree with @underthesea that it’s worth exploring a multi-chain
approach, given the DeFi Collective has the resources to do so.

This is a “yes, and” from my side. :+1:

1 Like
10

Our proposal specifically targets liquidity optimization on Optimism.Through strategic bribes and active voting, we successfully increased the POOL/ETH TVL to $100k.
Given our resource constraints, and capitalizing on our available assets $25000 ETH and 15000$LUSD. Duplicating this impact across multiple chains isn’t feasible without further funding.

However, we acknowledge the evolving landscape of PoolTogether’s deployment across chains such as Arbitrum, Base, and Ethereum. In light of this, and considering our finite resources, we’re exploring the potential to judiciously redistribute our POOL/ETH allocation to maximize the impact on liquidity on Base in Aerodrome, based on a strategic assessment of the most beneficial liquidity pools.

It’s an opportunity for us to demonstrate our capabilities and for the community to assess our adherence to our stated goals. This commitment and the outcomes of our strategic adjustments will be transparently reflected in our monthly reports, providing the community with verifiable insights into our actions and their impact on liquidity enhancement. Should this approach prove successful, it could pave the way for further discussions and potential future proposals, including considerations for Arbitrum, based on a foundation of mutual trust and demonstrated impact.

While we’re open to discussing a larger donation, our operational framework doesn’t extend to creating liquidity strategies that could be seen as managing assets on behalf of others. Given this, it seems prudent to focus our initial efforts on demonstrating our liquidity enhancement capabilities with the current fund request. This approach allows us to establish a track record of strategic decisions that benefit the broader ecosystem.

Considering the community’s input and the potential for greater impact, would redirecting the POOL/ETH allocation from Optimism to Arbitrum better align with our collective objectives?

Or perhaps we should adhere to the original plan, with a view to submitting a new proposal in a few months/weeks, once the results of our current efforts are visible and can be evaluated by the community.

11

Thank you @CookingCryptos and @tokenbrice for making this proposal. Your engagement is appreciated; especially in tackling an under-served aspect of the protocol.

I was on vacation last week, so I missed the community call. I’ve read the responses here, however, and I have a few things I want to add.

Feedback

I’m excited to have new contributors to the protocol. First and foremost: I’m glad that you’re here! Especially with the experience that your team has.

Having an active market maker would be extremely beneficial for PoolTogether. On the council call today we were talking about someone who wants to buy POOL but hesitated because slippage is so high.

Questions

Milestone 2 refers to performance metrics defined in milestone 1, but can you elaborate on what those metrics might be? I’m curious to hear more.

Would your team experiment with tighter LP ranges with a protocol like Uniswap V3? With the limited amount of capital you are requesting it seems to me that efficiency would be important.

Concerns

The new version of PoolTogether V5 will be burning POOL, so liquidity on each chain is critical to the protocol’s success. This was stated before, but I’ll repeat: deploying liquidity to where the protocol is important. We’re looking at Optimism, Arbitrum, and Base at a minimum. Supporting the protocol across these chains would be essential.

You state that duplicating the strategy across multiple chains isn’t feasible with the requested liquidity, but the request is for 3% of the circulating supply of the token. The market cap is low so the dollar amount is low, but that’s a decent portion of the token supply. We must be able to do more!

12

“Milestone 2 refers to performance metrics defined in milestone 1, but can you elaborate on what those metrics might be? I’m curious to hear more.”

Regarding the performance metrics for Milestone 2, we’ll measure the increase in TVL during the deployment’s first week, both with and without our liquidity, to gauge our liquidity’s effectiveness. The distribution of our votes will be another critical metric. Beyond incorporating these metrics into our standard monthly reports, we will issue a specific report two weeks after the initial phase ( 1 week after the launch liquidity ) to provide detailed insights into the immediate effects of our actions.

“Would your team experiment with tighter LP ranges with a protocol like Uniswap V3? With the limited amount of capital you are requesting it seems to me that efficiency would be important.”

Our strategic position in veVELO empowers us to significantly influence liquidity growth on Velodrome by directing emission votes towards selected pools, thus enhancing APR and attracting more LPs.

Concentrated liquidity isn’t the most effective strategy for POOL due to its smaller market cap. This approach could demand more effort from liquidity providers and increase volatility, potentially moving liquidity out of the desired range.

Although UniV3-style concentrated liquidity pools offer advantages, they may not always ensure consistent trade execution when relying solely on fee-based liquidity in low-volume scenarios. Velodrome is rolling out its own implementation on CL soon, called Slipstream, and we’ll be keen to experiment with it. [https://twitter.com/VelodromeFi/status/1765343942416146845

](https://twitter.com/VelodromeFi/status/1765343942416146845)The Collective is open to experimenting with Velodrome’s Slipstream CL using a portion of the liquidity pool. However, maintaining a constant product pool as a base is crucial. Our strategy encompasses a broader perspective, prioritizing a foundational constant product approach.

Our approach to building liquidity encompasses all factors, not just efficiency. While CL structures provide increased effectiveness, they can result in increased token volatility, especially on a token like POOL, our perspective optimizes both efficiency and liquidity availability.

“Concerns”

We fully understand the concerns raised about the critical importance of liquidity for PoolTogether V5, especially considering the POOL burning mechanism. We’re ready to adapt our strategy to align with PoolTogether’s expansion across Optimism, Arbitrum, and Base.

Given the feedback, we’re open to reallocating the POOL/ETH allocation to Arbitrum, leveraging our voting power and influence on Ramses to maximize impact.

Additionally, we can reallocate the POOL/LUSD allocation on Base, leveraging our voting power and influence on Aerodrome.

Considering our collaborative effort, it’s pivotal to see our proposal not just as a $100k request but as a collaborative investment yielding a $140k impact for PoolTogether. This calculation includes PoolTogether’s $100k combined with our $40k contribution from the Collective’s reserves. Additionally, the value of the Collective’s voting power, though challenging to quantify, significantly enhances the TVL of the pools.
Our successful efforts to develop the POOL/ETH liquidity on Optimism, starting from 0 and now at $100k TVL, demonstrate our execution capabilities.

Armed with your feedback, I believe we can tailor our budget request to align more closely with the community’s vision. We’re committed to supporting PoolTogether’s expansion with a strategy that spans key blockchains, including Arbitrum and Base, for a more impactful DeFi collaboration.

The reallocation will be :

50k total - POOL/ETH initially planned for Optimism ⇒ POOL/ETH on Arbitrum/Ramses

Funds source: 25k ETH from The DeFi Collective + $25k POOL PoolTogether

80k total - POOL/LUSD initially planned for Optimism ⇒ POOL/LUSD on Base/Aerodrome

Funds source: 15k LUSD from The DeFi Collective + $25k USDC PoolTogether ⇒ LUSD + $40k POOL PoolTogether

2 Likes
13

I like the idea to do liquidity on Base! Liquidity on OP is already pretty good and the additional 50k is not rly needed but can’t hurt. (I would rather prefer Arbitrum in addition to Base though)
The 80k on Base liquidity will be pretty nice! Also probably Defi Collective voting for the LP on Base too which will attract other Liquidity Providers and increase it even more.

I still don’t rly see the case for LUSD though tbh, if we would do POOL/WETH on Base as well, I would be more inclined to support the proposal tbh.
Also I would like to see some written commitment regarding the voting power and voting for the Velodrome and Base POOL LPs.

After the funds get donated to the DeFi Collective, they stay forever in the LP as far as I understood, they earn fees (probably not much but who knows, depends on the trade volume) which wĂ­ll attract voters who wanna get those fees (+ any bribes) and the LP earns VELO increasing the voting power. Time goes by fast and if in a year the Collective focus shifts and the LPs get no votes anymore not even the ones it earned itself that would be unfortunate.

I think this proposal is a good opportunity to increase our L2 liquidity but our treasury is limited and the alternatives would be Protocol Owned Liquidity or renting liquidity via incentives. Having two different LPs adds unecessary complexity and inefficiencies in my opinion, also like others mentioned is the Uni V2 like Velodrome full range position not as efficient as Uni V3, although I personally think that is fine regarding it makes it simple and long term viable at any price point (it still competes with a more efficient managed Uni V3 POL).

Edit: Also, one clarification/question that came into my mind after I wrote “they stay forever in the LP as far as I understood”, is that even correct?
In the OP you say, “not selling any tokens we receive”, does that include keeping the DeFi Collective funds in the LP or if the focus would shift, could there be a situation where the Collective removes the funds from the LP and only keeps providing liquidity with the received funds?

I appreciate that you reworked the proposal and now include Base, for my approval on chain it is not quite there yet but getting in the right direction, to sum the long post up, personally I would rather like to see only POOL/WETH instead of LUSD, Base and Arbitrum instead of OP, and addressing my questions regarding the long term timescale about funds staying in the LP and voting power.

14

Given my previous message and the community’s feedback, we will reallocate our allocation to Base and Arbitrum, using the assets initially intended for Optimism.

Our choice for POOL/LUSD over POOL/WETH, especially on Base, is driven by the stability it offers. LUSD exhibits strong liquidity on Base, making it an advantageous pairing for the POOL token from a liquidity provision standpoint.
Given ETH’s volatility and POOL’s recent price action, the risk of impermanent loss is higher with POOL/WETH. POOL’s price behavior has been more akin to a stable asset, making POOL/LUSD a prudent choice.
Both strategic considerations and the practicalities of our resources drive our choice for a POOL/LUSD liquidity pool. We operate with finite funds and have proposed utilizing available ETH and LUSD because these assets are immediately accessible to us. LUSD is also an asset part of the rooster of protocols and tokens the protocols support, so this pool proves ideal also from an alignment perspective.

Converting our LUSD into ETH for a POOL/ETH pool on Base isn’t an option. If the community strongly prefers a POOL/ETH pool on Base, we would need additional funds to facilitate this setup.

We are committed to directing a significant portion of our voting power towards supporting the POOL LPs on both Aerodrome and Base.
Aerodrome with 250,000 veAERO we plan to vote with 25% of our voting power
Ramses with 8,300,000 veRAM we plan to vote with 15% of our voting power

The POOL tokens we receive will not be sold. Liquidity positions might not be static forever, they will adapt to the most beneficial strategies for the POOL at any given time. But given Aerodrome’s current dominance in Base liquidity and Ramses’ innovative approach on Arbitrum, I don’t foresee a shift in our strategy anytime soon. We’ve been doing this for the long haul and are committed to bolstering the POOL ecosystem.

We’re a bit puzzled by the resistance to our proposal. We’re not just asking for $100k to spend as we please. We offer a scale-up of the strategy currently implemented without any support asked or received from the PoolTogether DAO, where the Collective deployed $30k of its asset (POOL/ETH LP on Optimism) and allocated ~ $58k worth of voting power (10% of our 5.8M veVELO).

Maybe this proposal would be easier to evaluate for the PoolTogether community if we translate everything in $ terms.

Current situation: PoolTogether commitment = $0, Collective’s commitment = $88k

Proposal – Base: 25% of the Collective’s 250k veAERO voting power, $43k worth + $15k LUSD from the Collective’s assets

Proposal – Arbitrum: 15% of the Collective’s 8.3M veRAM voting power, $42k worth + $25k ETH from the Collective’s assets

Proposal total: PoolTogether commitment = $100k, Collective’s additional commitment = $125k, bringing the total commitment (including what is already done) over $220k.

It’s important to underscore the total value we bring: in addition to the $40k assets (ETH+LUSD) the Collective will deploy in LP, it allocates $85k worth of voting power on top of the $58k already deployed, bringing the total value of voting power deployed post-proposal to $143k. You’ll unlikely find another partnership offering this magnitude of support and strategic value to PoolTogether.

1 Like
15

Thx for the detailed reply and regarding “We’re a bit puzzled by the resistance to our proposal.”, I’m sorry if if felt like that!

I highly appreciate the proposal, it was very good from the start already and just got better imo by customizing it to our needs on Base and Arbitrum.

Also I’m just one person with one opinion, someone who is especially interested in all Liquidity topics, still not talking for everyone ofc, others maybe have other opinions, Tjark and Ncookie already said they support it and you won me over too by providing all that details too, sorry if I made it a bit cumbersome ^^

Like Brendan said, 160k POOL is just quite a bit with 3% of the circulating supply, although not in $ terms at current prices. Also with the proposal being a donation and crypto evolving very fast, it just is the uncertainty and long term nature of it which made me a bit hesitant to support it.

I do it now though!

To sum it up cause there are quite a bit replies here already, this proposal would send roughly 160k in POOL, 25k in USDC, give the Collective a 10k Delegation budget via the Representative feature (we can easily do that from our multi sig, no need for extra funds for this)to be used in the “PoolChad of the Month” campaign and overall this proposal will hopefully be a great for more collaborations initiatives between PT and DeFi Collective! :slight_smile:

1 Like
16

No worries at all! It’s part of the process to question and refine proposals to ensure they align with everyone’s expectations and the platform’s goals.

We completely understand the unique position we’re in as a non-profit in the DeFi space, which may not align with the standard grant-seeking models. Building trust with other protocols is essential for us to achieve our vision of a more decentralized DeFi ecosystem. This proposal is just the beginning, aiming to establish a foundation of trust and collaboration with protocols like PoolTogether. We’re honored by PoolTogether’s confidence in us and excited to validate our shared values through concrete achievements.

The proposal’s modifications are :

  1. Liquidity Reallocation:
    We are shifting our focus from Optimism to targeting both Arbitrum and Base for our liquidity initiatives.

The reallocation will be :

  • POOL/ETH initially planned for Optimism/Velodrome ⇒ POOL/ETH on Arbitrum/Ramses
    Funds source: $25000 ETH from The DeFi Collective + $25000 POOL PoolTogether
    Voting power: 15% of the Collective’s 8.3M veRAM

  • POOL/LUSD initially planned for Optimism/Velodrome ⇒ POOL/LUSD on Base/Aerodrome
    Funds source: $15000 LUSD from The DeFi Collective + $25000 USDC PoolTogether ⇒ LUSD + $40000 POOL PoolTogether
    Voting power: 25% of the Collective’s 250k veAERO

Tokens donation

Amount Token
25000 USDC
162500 POOL

Assuming a POOL price of 0.40$

  1. Delegation modification :
    PoolTogether will keep the $10000 USDC previously requested for the “PoolChad of the Month” initiative, and a representative will be assigned.
1 Like
17

@CookingCryptos It feels like we’ve achieved rough consensus; and once we move forward it sounds like there is still room for refinement.

If you want to do a Snapshot vote for a temperature check I can help you set that up. Otherwise, if you feel confident in going on-chain directly then go for it. You have my vote.

To maximize engagement, I would recommend waiting for the Pooltime team so both go to vote at the same time. I can’t imagine you’d have to wait very long; a week at most.

18

I’m closing this thread in anticipation of the refined PTBR.