Thanks for the feedback everyone, and apologize for bad timing while I was out for holiday.
A key theme in the comments seemed to be around the duration of the project.
I propose we do this for $GMI, $LDI and $DATA. The products are relatively diverse and $DATA has already been in the market for a few months so it’s a good indicator of how necessary incentives are.
We know that $DATA has/had roughly 30% APY so is 240%, or 100% appropriate. There are also many different incentive options, such as single sided staking, that we’ve never explored.
I agree with @jdcook’s point that we should be building products people want. But that doesn’t always determine market success. There are crappy products with great branding that beat out better products. I was thinking about this while doing black Friday shopping. People are obsessed with getting good deals, sometimes over buying the best product.
@lee0007 brings up a good point about building case studies and including as much external information as possible. I think that’s a critical part to ensuring we’re collecting and acting on the right data. Your input on some of those parameters would always be welcomed!
@edwardk I agree with your point but it becomes difficult to create criteria for how much money each product should get. I prefer something to the effect of: each product gets up to $400k and if certain thresholds are met we increase of decrease. This comes from optimization. If products don’t hit a certain AUM in a certain time period that is likely an indicator of product-market fit. We can decide to pull back spending at that point.
Note: Seed liquidity will be handled separately and is the main focus of IIP - 110 - forming a liquidity pod. This pod would manage the strategies and execution of capital for this project.
@mel.eth I’d like to run a poll for a vote on allocating up to $400k for $GMI, $LDI and $DATA to test the effectiveness of incentives on growth.
If passed either 1 of the 2, whichever happens first
- These products (excluding DATA) will have these terms included in their DG2 snapshot
- I’ll work with our internal liquidity experts to create a plan for incentive strategies and request a IIP snapshot