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Empowering fun & resilient finance: zoom in on the collaboration between the Collective and PoolTogether

Empowering fun & resilient finance: zoom in on the collaboration between the Collective and PoolTogether

The DeFi Collective is proud to announce a landmark collaboration with PoolTogether , marking a significant step forward in our mission to nurture the ecosystem of decentralized finance (DeFi).

PoolTogether was already one of the mission-critical protocols supported by the Collective, yet the recent governance proposal PTBR-16 , successfully passed and executed on the PoolTogether DAO, enables scaling the support upward. It allocated 244k POOL tokens, 25k PTaUSDC, and the management of a 10K PTaUSDC delegation to the Collective.

Demonstrating Commitment Through Action

Since December, the DeFi Collective has played a crucial role in supporting PoolTogether, notably enhancing the liquidity of the POOL token on the Optimism network utilizing the Collective’s veVELO voting power on Velodrome finance. Our initiative included a $25k liquidity provider (LP) seeding, 580k weekly veVELO votes, and 250 OP vote incentives allocated weekly to the POOL/ETH pool.

This strategic deployment has attracted and sustained a total value locked (TVL) of $80-100k, helping the POOL token reach a liquidity depth on Optimism similar to the one observed on mainnet.

pool-velodrome

The Collaboration in Focus

Our collaboration with PoolTogether reached a new milestone with the successful proposal by CookingCryptos, the Collective’s adept “grant-hunter.” This proposal, aimed at scaling up the liquidity support provided to POOL, has been a testament to our proactive approach and marked the first instance of grants/donations obtained through governance outreach by the Collective.

Strengthening POOL’s liquidity on Arbitrum & Base

This collaboration is designed to strengthen PoolTogether by expanding the strategic liquidity enhancement to Base and Arbitrum networks by leveraging the Collective’s significant voting powers to incentivize deeper POOL liquidity:

pool-aerodrome

  • Base Network: Our efforts are concentrated on Aerodrome Finance, where we deployed and support a POOL/LUSD liquidity pool, again utilizing our voting power to drive liquidity and participation. The pool was seeded with $100k worth of LUSD and POOL and receives veAERO voting support from the Collective.
  • Arbitrum Network: Ramses Exchange is our exchange of choice. The pool was seeded with $78k of POOL & ETH and receives veRAM voting support from the Collective.

pool-ramses

Together, the two endeavors aim to grow POOL’s liquidity on two major L2s where the application will be deployed.

Remaining POOL

The proposal was sized for a $100k total budget, with $65k in POOL tokens. Yet between the moment the proposal was submitted and voted and its execution, POOL’s price significantly appreciated, leading to a remaining balance of 64 360 POOL unused for liquidity providing, despite a sizeable increase in the Collective assets:

  • The Aerodrome pool, to be seeded with $80k as per the proposal, was seeded with $100k worth of assets.
  • The Ramses pool, to be seeded with $50k as per the proposal, was seeded with $78k worth of assets.

The Collective is currently examining how to use the remaining POOL balance best to serve the purpose of the collaboration further. The current two leading use cases envisioned are seeding the Across Bridge to facilitate the bridging of POOL between mainnet/Optimism/Arbitrum/Base & use the POOL as vote incentives to deepen the liquidity.

Engaging the Community: The “Ant of the Month” Initiative

The Collective will harness the fun and engaging nature of PoolTogether to foster community engagement and recognize significant contributions with the “Ant of the Month” program. This program is designed to highlight and reward community members who exemplify dedication and innovation within the Collective’s community.

A rolling $10,000 USDC ticket delegation will be allocated to honor a standout contributor. He or she will be eligible for the gains earned by the position for the full duration of the delegation. Starting after our liquidity initiatives, this effort aims to boost engagement and celebrate the collective spirit shaping our ecosystem.

PoolTogether’s Evolution: Embracing V5 with the DeFi Collective

As PoolTogether ventures into its V5 iteration, inspired by the concept of hyperstructures , it aims to set new benchmarks for scalability and autonomy in DeFi protocols. The V5 update represents a leap towards a protocol that combines yield from an increased number of assets, allowing the distribution of prizes in a permissionless and autonomous fashion centered around the protocol’s POOL token.

The DeFi Collective will support PoolTogether in this evolution, committed to using our tools to enhance liquidity across the major layer 2’s beyond our initial successes on Optimism.

What This Means for the DeFi Ecosystem

Our collaboration with PoolTogether and the recent proposal’s success underscores a significant leap toward enhancing DeFi’s ecosystem. By strategically increasing liquidity across leading Layer 2 networks and DEXs, we aim to:

  • Boost User Participation: Making PoolTogether more accessible and attractive to newcomers and seasoned users.
  • Ensure Protocol Stability: Our liquidity initiatives promise smoother operations, reinforcing PoolTogether’s role as a DeFi staple.
  • Cultivate Community Growth: Through initiatives like “Ant of the Month,” we encourage innovation and collaboration, knitting a tighter DeFi community.

Evaluating Progress, Charting the Future

Three months after initiating our liquidity enhancement activities with PoolTogether, we’ll undertake a comprehensive evaluation to assess our progress and strategize for the future. This critical review will culminate in a detailed report encapsulating the outcomes and insights gleaned alongside a strategic roadmap to bolster ongoing support and growth of liquidity pools.

Building the Future of Finance Together

This collaboration illuminates the collective’s commitment and belief in supporting resilient and visionary protocols in their efforts to showcase the strengths that make decentralized finance appealing to the world. By bolstering PoolTogether’s liquidity across Optimism, Base, and Arbitrum, we showcase the Collective’s role as a catalyst for its growth.

The successful acquisition of our inaugural grants/donations through proactive governance engagement reflects the deep trust and synergistic spirit we share with the community.

At the heart of the DeFi Collective lies an unwavering dedication to nurturing the adoption and evolution of robust, sustainable DeFi protocols. Together, through deliberate and strategic partnerships, we’re paving the way for a financial ecosystem that stays true to its permissionless, decentralized, and positive-sum ethos for a more open and equitable financial future.

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