IIP-XX - Joint Marketing and LM incentives with Kyber’s DMM

IIP Number: XX
Title: Joint Marketing and LM incentives with Kyber’s DMM
Status: Proposal
Author: Zeb (@Zeb), Mel (@mel.eth)
Discussions-to: comes out of the DPI-Kyber Ambassador program
Created: 11-2-2021

Simple Summary

A co-marketing and joint-LM campaign with DPI on the Kyber DMM.

‌Abstract

The Kyber team has suggested a co-marketing and joint-LM campaign with DPI on their DMM. The Kyber DMM is an extremely efficient DEX and the current flagship of Kyber. Having liquidity on a DEX which is getting traction on multiple chains can bring in new users and new exposure. Users for instance, who do want to have exposure on the Ethereum DeFi ecosystem, but are priced out on mainnet.

Motivation

The Index Coop started the ambassador program to create stronger bonds through metagovernance, listings and partnerships. From what I understand, this could be the first instance of it bearing fruits!‌

Specification

Over the course of the past couple months I have been interacting with the Kyber team and some of the Coop’s contributors, finding ways to make our bonds stronger. KNC is one of the holdings within the DPI token and therefore we as the Coop have clear incentives to work together with Kyber.

Background

The progress of listing DPI on the Kyber DMM had come to a halt somewhere in September. After starting discussions, the Kyber head of trading helped to setup a pool and averything is basically ready to go, but hasn’t happened yet. From what I understand, mainly due to time constraints and different priorities on the Coop’s side.

Just recently, Kyber reached out once more, reiterating that they do want to see this happening, and I quote:

Projects usually never get his help so we did prioritize you.

Out of hundreds of projects I’ve only involved the head of trading with two.

I do not want to toot my own horn too much, but the reasons for getting prioritized is due to my personal connections with Kyber (both Vietnam based) and, more importantly, that Kyber appreciates the Coop’s efforts for instating an ambassador specifically for their project. So this is speaking in favor of the ambassador program.

Technical Specification

The Kyber DMM has been gaining substantial traction on multiple chains, most recently on Avalanche and Fantom. So it is possible to do a multi-chain campaign, or simply on Ethereum or Polygon. The Kyber team has a preference towards Polygon, due to Ethereum gas fees and wanting to give normal users the option to get exposure to DeFi in an affordable way.

Test Cases

‌For examples of other projects doing these type of partnerships, see here the recent Kyber proposal for joint-LM incentives with dForce and here with Pegaxy.

Copyright

Copyright and related rights waived via CC0.

  • Yes
  • No

0 voters

Hi @Zeb,

An interesting proposal. Thank you for sharing it on the forum.

Can you help me understand this proposal a bit more. The proposal mentions joint incentives. Can you please provide some details on this aspect.

I’m not sure what I am voting for here. Is it just a sentiment check, if so - could we reframe the post. If this is a spend approval request, can you please state the targets/OKRs associated with this initiative. Also, how much is Kyber offering Index Coop to list DPI ? Personally, MVI is hot right now, what about our other products and the broader relationship considerations.

3 Likes

All good questions, and tbh, I do not have the direct answers to all of them.
Since this is the first time I am trying to get joint-LM to happen between two protocols, I do not have a lot to go on when it comes to numbers. When I asked internally, both Kyber and Index kind of answered like, what is possible? But I assume it would include incentives of KNC and INDEX for LPs. Just a question of how much and for how long. Kyber hinted to up to 3 months.
So this is mainly a way to source community input!
What would you think is doable?
I think MVI is definitely possible instead, the ambassador role started with DPI (since KNC is within DPI) but I personally see no reason why it couldn’t be MVI instead.

Isn’t KNC one of the tokens with quite specific rebalancing challenges? I may be mistaken but I think @jdcook and @edwardk were looking for ways to increase liquidity. Could this factor into the initiative here?

1 Like

Hi @Zeb,

Great initiatives for sharing this on the forum. :slight_smile: Absolutely awesome to see collaboration with other communities developing into stronger relationships over time.

In this particular instance, may I suggest looping in some folks from BDWG who can help progress this forum post into a proposal for both communities can rally behind. @Mringz @BigSky7 thoughts ?

5 Likes

Love the thinking here @Zeb! As Matt suggested it would be good to flesh out the strategy here a bit more.

Alongside this it would be good to develop a deeper understanding of which DEXes we want to focus on for building long-term liquidity so that we are not spreading rewards too thin across too many dexes.

3 Likes