Expanding POOL Liquidity with The DeFi Collective
| Start Date | January 1st, 2025 |
| Duration of Work | 3 months |
| Budget | $150,000 |
Following the success of the initial grant, The DeFi Collective proposes renewed measures for PoolTogether to contribute to liquidity and enhanced community engagement. This proposal outlines a $150k POOL grant to be deployed across Base, Optimism, and PoolTogether.
As part of the measures, we are introducing the PermaLP initiative: a long-term liquidity approach where funds are permanently allocated into a dedicated multi-sig wallet (permalp.deficollective.eth). This ensures consistent, growing liquidity that remains in place indefinitely, providing stability and confidence for supported protocols.
PoolTogether will be among the first to benefit from this new initiative, with POOL liquidity integrated into PermaLPs.
The DeFi Collective is a non-profit organization, focusing on the enhancement and support of maximally decentralized DeFi protocols across various EVM chains. There is no equity, no shareholders and no profit distribution. The Collective is governed by its members as outlined in our articles of association, publicly accessible here. Operations are overseen by the board members, which act on a non-salaried basis.
The DeFi Collective identifies and self-appoints to support protocols and projects aiming to further decentralization in DeFi. The DeFi Collective does not act as a paid service provider, but rather finances its mission and ongoing operations through the receipt of donations, grants and similar contributions as well as through the active deployment of its proprietary on-chain treasury.
The DeFi Collective also operates DeFiScan, a cutting-edge research framework and analytics dashboard that provides verifiable insights into the decentralization level of EVM-based DeFi protocols. By evaluating protocols on a scale of Stage 0 to Stage 2 of decentralization, DeFiScan helps users understand and assess the maturity and risks associated with DeFi platforms.
For those who haven’t heard yet, Pool Together is Stage 2!! 
Through DeFiScan, we aim to promote transparency, education, and self-policing, empowering users to make informed decisions when engaging with EVM-based DeFi applications.
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 DeFi Collective’s mission is to support Genuine DeFi protocols like PoolTogether by ensuring robust liquidity, cross-chain accessibility, and community engagement. With the success of our previous grant deployment, we are motivated to further deepen POOL liquidity, enhance its utility, and contribute to the protocol’s long-term growth and sustainability.
Goal
The DeFi Collective’s fund request offers significant benefits to the PoolTogether ecosystem:
Expanding Existing Pool Support
We aim to contribute to the liquidity of the POOL/ETH pool on Velodrome (Optimism) and the POOL/LUSD pool on Aerodrome (Base). These pools are already supported by The DeFi Collective, and this proposal will enhance their capacity, improve efficiency, and attract additional participants. POOL will be transferred into the permalp.deficollective.eth wallet, a dedicated address used to ensure that support remains permanently available, reducing churn and optimizing long-term support for PoolTogether’s ecosystem.
Expanding Community Engagement:
A portion of the grant will be deposited into PoolTogether’s prize pools and delegated through the “Ants of the Month” program. A monthly donation that fosters community participation and rewards contributors, reinforcing PoolTogether’s reputation as a collaborative and innovative DeFi protocol.
Milestones & Deliverables
Milestones for The DeFi Collective’s Initiative with PoolTogether
Milestone 1: Strategic Liquidity Expansion
- Goal: Deploy $100,000 in POOL tokens, matched with $100,000 equivalent from The DeFi Collective’s existing proprietary treasury, to strengthen the POOL/ETH pool on Velodrome (Optimism) and the POOL/LUSD pool on Aerodrome (Base).
- Deliverables: On-chain deployment in the specified pools.
- Timeline: Completed within two weeks of receiving the grant.
Milestone 2: Enhanced Community Engagement via Delegation
- Goal: Strengthen the “PoolChad of the Month” initiative by adding $50,000 in POOL tokens to the existing $10,000 allocation. This program continues to recognize and reward active community members who make significant contributions.
- Deliverables:
- $50,000 POOL deposited into the mainnet POOL vault on deficollective.eth, and added into the existing rolling delegation of 10 000 PTaUSDC harnessed to reward the Ant of the Month.
- Monthly delegation of POOL tokens to a selected “PoolChad of the Month,” fostering greater community motivation and engagement.
- Timeline: Completed within two weeks of receiving the grant.
- Measurement: The effectiveness of this milestone will be measured by enhanced community engagement, successful monthly delegation of the $50,000 POOL allocation, and strengthened collaboration between The DeFi Collective and PoolTogether.
Milestone 3: Ongoing Reporting and Transparency
- Goal: Ensure ongoing transparency by publishing Monthly and Annual Treasury Reports on The DeFi Collective’s website, detailing key activities, governance participation, and impact.
- Deliverables:Regular monthly and annual reports outlining treasury operations, supported initiatives, and program outcomes. Publicly accessible reports available for independent verification.
- Timeline: Reports are published monthly and annually on an ongoing basis, ensuring consistent and perpetual transparency.
- Measurement: Consistent publication of monthly and annual reports on time. PermaLP positions can be audited by anyone at any time by looking onchain at permaLP.deficollective.eth. A PermaLP Dune Dashboard has also been developed to facilitate the endeavour.
Timeline
January 2025 - April 2025: Full deployment of the measures, with continuous monitoring and monthly community engagement initiatives.
Budget
The DeFi Collective requests a total of $150,000 in POOL tokens.
Liquidity allocation:
POOL Token Deployment ($100,000):
- $50,000 in POOL for the POOL/ETH Pool: We will match $50,000 of the POOL tokens with an equivalent $50,000 in ETH from our existing proprietary reserves. This action will be executed on Velodrome protocol on Optimism, with a total of $100,000 in supplied support.
- $50,000 in POOL for the POOL/LUSD Pool: We will match $50,000 of the POOL tokens with an equivalent $50,000 in LUSD from our existing proprietary reserves. This action will be executed on the Aerodrome protocol on Base, with a total of $100,000 in supplied support. The POOL/LUSD pairing is likely to evolve into POOL/BOLD following BOLD’s launch.
| Amount | Token |
|---|---|
| 95300 | POOL |
Assuming a POOL price of $1.05.
The “PoolChad of the Month” initiative:
We request an allocation of $50,000 in POOL tokens, which will remain under the management of PoolTogether. The representative, @TokenBrice, will continue overseeing this initiative to recognize and reward outstanding contributions from The DeFi Collective community.
This program aims to foster a collaborative and innovative spirit by delegating the “PoolChad of the Month” rewards to deserving community members each month, driving engagement, and strengthening ties within the ecosystem.
| Amount | Token |
|---|---|
| 47700 | POOL |
Assuming a POOL price of $1.05.
Ecosystem Support Assurance
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.
Disclaimer
POOL granted to the Collective solely belong to the Collective, are not repayable to PoolTogether and will not be custodied or held in trust by The DeFi Collective. Any rewards generated in implementation of the proposal belong to the Collective and will not be forwarded. The DeFi Collective acts proprietarily within the limitations of its purpose and does not manage assets on behalf of or provides financial advice or other services to third-parties. The DeFi Collective may cease support in case of future regulatory or legal limitations with respect to the proposal, POOL, or else.