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 establishing two new liquidity pools. The first one will be a POOL/ETH pool on Arbitrum, on Ramses. The second pool will be POOL/LUSD, which will be created on Base, on Aerodrome. These new pools aim to enhance liquidity, enabling smoother transactions and drawing 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: Establish the new POOL/ETH liquidity pool and 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, the representative (@TokenBrice ) will delegate these funds to a community member chosen for their significant impact, fostering a sense of recognition and motivation within the community.
- Timeline: The “PoolChad of the Month” 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.
Liquidity allocation:
POOL Token Deployment ($65,000):
- $25,000 in POOL with our proprietary ETH for a new POOL/ETH Pool: We will match $25,000 of the POOL tokens with an equivalent $25,000 in ETH from our reserves. This action will be executed on the Ramses protocol, on Arbitrum, with a total of $50,000 in supplied liquidity.
- $40,000 in POOL for a 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 action will be executed on the Aerodrome protocol, on Base, with a total of $80,000 in supplied liquidity.
USDC Allocation ($25,000):
- 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 25000 USDC 244360 POOL
Initially, we assumed a POOL price of $0.40. However, the current price is $0.266. To align our plans with available funds, we must adjust our allocations accordingly.
The “PoolChad of the Month” initiative.
We request an allocation of $10,000 USDC, which will remain in the possession of PoolTogether. The representative assigned to manage this will be @TokenBrice. This initiative aims to recognize and reward outstanding The DeFi Collective community members for their significant contributions, fostering a collaborative and innovative community spirit.
Amount Token 10000 USDC
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.
