PoolTogether is a protocol for no loss prize savings built on Compound. The protocol is one of the very first, largest, and longest running protocols to be built on top of Compound. PoolTogether was launched in June of 2019 and has been providing supply side capital and users to Compound continuously since then (at one point there were more unique depositors using Compound via PoolTogether than Compound directly). Currently PoolTogether supplies ~$220 million of supply side assets to Compound.
In addition, PoolTogether has been an exceptionally value positive actor in the Compound ecosystem. Since the COMP governance token launched PoolTogether has never sold any COMP. All COMP accrued has either been stored with PoolTogether governance or given away to depositors. PoolTogether has also not participated in any recursive yield farming activities with COMP. Meaning relative to other depositors with the same size of deposits, COMP accrued as been much less.
All this leads me to my ask
PoolTogether has deployed a new prize savings pool for the Tether asset type. Because of the nature of the protocol, PoolTogether is uniquely reflexive in growth. Larger prizes lead to more deposits, more deposits create larger prizes. This creates a bootstrapping problem for new prize pools to attract large amounts of capital.
I’m asking for a 1,000 COMP grant to help bootstrap the Tether prize pool and ultimately bring more capital into the Compound protocol. At current market prices 1,000 COMP is $475,000. This COMP would not be sold but rather given out over the first 10 weeks of the new Tether prize pool as prizes. This means the Tether prize pool would be bootstrapped to an initial ~$47,500 weekly savings prize for the first 10 weeks. This would make the prize closer to the current Dai and USDC prize pools.
Ultimately this proposal is good for Compound as it will bring even more depositors and users to the protocol via a third party interface. It also shows Compound’s appreciation and valuing of its longest term integration partner. It’s good for PoolTogether has it bootstraps network effects needed to help more people save money.
That’s it! I’m open to any questions.
As I am a reviewer on the grants committee I will not be participating in this decision due to conflict of interests.