The PoolTogether protocol has started a meaningful rewards campaign that aims to fuel the protocol growth over a long timeframe. Due to the increased POOL distribution, recent market conditions, and the appreciation in price, the bridging of POOL has drastically picked up. This has caused the Across HubPool to reach full utilization and put a temporary pause of POOL bridging on Across.
This proposal aims to solve the liquidity problem on Across by moving additional POOL into the Across POOL LP on Mainnet.
Abstract
This proposal will increase the current protocol-owned liquidity on Across from 90,000 to 140,000 by adding 50,000 POOL.
Motivation
Across has played a big role in the PoolTogether ecosystem as it allows moving POOL across Ethereum L2s instantly and cheap. The POOL token has seen a big increase in demand. People use it to stake on all chains where the protocol is deployed.
Currently bridging POOL on Across is paused due to full utilization. By topping up the liquidity we can unblock it again to allow POOL holders to frictionlessly transact across chains again. As a bonus, the treasury would currently earn 7.725% on deposited POOL
Easy yes, let’s get the Across bridge working again!
Btw. according to the Across UI the Treasury has earned 15k in POOL already from bridge fees and this altough fees are super low imo and people get OP rewards when bridging to Optimism/Base!
Small correction, we “only” got 90k in the Relayer in POL, I got that one wrong in my last Across proposal too though, 75k was the total liquidity at that time I think, we only had 15k POL and added 75k, so got 90k now in total. This proposal would then increase it to 140k which is good imo! Relayer is at 40k and works good with that amount right now!
Do you know if those 15k are already “in the pool”?
Just thinking if this isn’t the case, withdrawing those rewards and depositing them in the pool should be part of the proposal (if people are opposed to adding 50k, this should maybe be the proposal).
Thanks for spearheading this Tjark! I support this.
I’d also support a larger amount so that the bridge doesn’t halt again. The LP position is held by the timelock so I think we’d be fine putting in several hundred thousand POOL.
The bridge did 120k POOL in volume last week. Across uses the canonical bridges to return liquidity, so LP funds are inaccessible for a week. That tells me we need the LP to be at least two weeks worth of volume, so ~240k.
50k will cover our current volume, but if it continues to rise then we’ll have this problem again.
Just confirmed with Across that this is already included in our position (auto-claimed). The math of what we’ve been holding in the original post is wrong - I didn’t double-check it before I took it over from another proposal.
Should we aim higher then and add 100k? This will probably futureproof us for until after the Worldchain launch.
The DeFi Collective is currently providing 82,000 POOL to the Across LP. As per conversation with TokenBrice the Collective will utilize these funds to provide liquidity on Aerodrome/Ramses. They will come up with the ETH to match it accordingly.
The Across team has to spend time and effort every time we run low on liquidity. After taking in feedback from Discord and the council call (thanks to @TheRealTuna, @Brendan, @BraveNewDeFi, @Lonser, and probably more), I suggest increasing this proposal to 200,000 POOL.
I will follow up with a link to the onchain proposal on Tally.
