In order to increase AUV for $DPI token and incentivise long-term holding of the $DPI token, we have identified the potential to work with PoolTogether by contributing tokens to their no-loss lottery. We believe that the creation of this program will incentivize token holders to stake their $DPI in the PoolTogether protocol to earn $INDEX rewards.
Pooltogether recently released version V3 of their protocol which allowed the creation of a rewards pool for any ERC-20 Token. Additionally, the project also released a governance token. The project has seen huge success since the V3 launch. According to Our Network report, the total value locked has increased from about $1.2 million to about $5 million representing a 3x in TVL in a short period of time after the V3 launch. More recently the project has also released their governance token $POOL on the 17th February which has increased the TVL 17x to $88 million TVL.
The Pooltogether protocol also rewards users that stake tokens in their main reward pools with the $POOL token i.e $DAI, $USDC, $COMP, $UNI. The community can vote to include more native token reward pools that will be rewarded with the $POOL token.
One of the active pools right now is the UNI pool. According to the UNI community, they see meaningful value in the program:
“The pool launched just 12 days ago and it’s been a huge success. With no marketing it already has 400 unique wallets with almost $1 million in value (~181,000 UNI) deposited. 49% of all wallets deposited do not hold tickets to the Dai pool. Meaning this prize pool is helping a new audience save money with the protocol.”
Pooltogether also rewards users for depositing and referring deposits so the network effects of the no-lottery program are substantial. This is probably a factor in the success of the lottery programs for new tokens. Additionally, the Pooltogether protocols has a feature whereby anyone can contribute to an additional reward in a “Lootbox” the reward can be another ERC-20 Token or NFT ERC-721 Token.
Additionally, their DAO is looking to foster more partnerships according to their post about the future direction that was posted in their forum, so it would be a good long term partnership as both Indexcoop and PoolTogether as both organizations seem aligned strategically.
Main PoolTogether reward contracts (TVL):
- DAI: $35,883,733
- USDC: $37,416,621
- UNI: $14,902,814
- COMP: $5,727,925
The proposal is for the 100 $INDEX per week no-lottery program that will be run for a period of a month to gauge the benefits of the rewards pool. We would like to work with Pooltogether to get the program posted on their featured on their website front page (https://app.pooltogether.com/) as you will see on the website, only four tokens are featured.
Our goal is to achieve a minimum $1.5m $DPI staked in the lottery program every week.
Technical execution is pretty simple – we just need to send $INDEX to the Pooltogether contract address and the contract handles the selection and distribution of prizes.
There are other potential benefits here - Exposure to their marketing channels as well will be beneficial. Especially after the recent airdrop of their $POOL token.
We can create brief guides that will be posted on both PoolTogether’s and Index Coop’s marketing channels to inform new users on how to participate in the PoolTogether lottery and how to purchase Index Coop’s $DPI token. This would be a good time for the trial as we just enabled fiat on-ramps via Transak.
100 $INDEX tokens per week. For a period of 4 weeks a total allocation of 400 $INDEX.
How to Measure:
This campaign is about engagement and providing $DPI holders with optionality for the DPI holdings. Best way to measure this is through total $DPI value locked in the lottery contract, number of wallets represented, wallet overlap between existing PoolTogether lotteries and $DPI lottery and lootbox engagement.
Lootbox engagement: qualitative. hard to measure, but we can track how many and which assets have been added to the lootbox.
- Total value locked (TVL)
- Net unique wallets
- Overlap with DAI lottery: less than 50%
- Net $DPI retention
- Net un-incentivised TVL
- Net assets added to contract lootbox
Per week TVL: $1.5m-$2m
Unique wallets: 1000
Feedback will be greatly appreciated. This was adapted from the more detailed memo which can be found here: https://docs.google.com/document/d/1UoSLCn2KWaWtcvCCwnhqXJJzysT4I0tHGj0Hw6UtJ3E/edit?usp=sharing