Pooltogether Announcement For Behodler

Proposal for a liquidity mining fund vote on Snapshot

Behodler is currently in an exciting phase of building with feverish levels of work being done on both Limbo and the new UI.

In the lead up to this bright new era, we have an opportunity to invigorate the EYE market, raise liquidity, and create intrinsic marketing buzz by spreading out tentacles to a very popular DeFi platform, Pooltogether. This will bring new attention to Behodler at a very low cost, with no dev work required. This article provides the backdrop and then explains the proposal.


One of the key features of Behodler is the way in which all incentives exist in virtuous closed feedback loops. For instance, Scarcity’s (SCX) burn-on- transfer increases residual liquidity in Behodler (liquidity that can never be redeemed) which leads to more SCX minting which leads to more burning. Similarly, when traded on token pair AMMs, SCX burning automatically raises the price which reinforces the above loop further (automining).

For Limbo, every time a staking round concludes, the SCX generated by the new token listing is used to market purchase and pool Flan. Since SCX value is proportional to total locked value on Behodler, Flan’s value is also proportional to total locked value which means that each successful listing has a permanent demand boost for Flan, enabling more tokens to be listed at any given point in time, further boosting Flan’s value in yet another virtuous cycle.

Finally, Flan, SCX and EYE are all burnable which means that as use cases are added to them, we can algorithmically shrink their supply, returning value to holders.

Liquidity mining on Behodler, whether in the pre-listing phase of Limbo or beyond, is virtuous and perpetual, meaning that any value returned to miners should come from a perpetual flow (such as SCX fee revenue) and not rely on a diminishing fixed stock.

On the other hand, Behodler does have a fixed size liquidity mining fund currently locked on team.finance of 2.5 million EYE. Since all incentives on Behodler are perpetual and deflationary, releasing all this EYE into the wild in one big burst would undermine the deflationary ethic and isn’t sustainable in the long run. Without a good plan, releasing that much EYE would negatively impact the price. However, to repurpose this fund away from mining without the overwhelming consent of the community constitutes a betrayal of the earliest holders who were expressly promised the use of this fund for liquidity mining. In particular, in order to remain faithful to holders who partook in the original airdrop of EYE, the following constraints should be upheld:

1. Every last drop of EYE used in the liquidity mining fund should achieve the largest possible return on value.
2. It should be used for liquidity mining of some sort.
3. When used in an unexpected way, should get the consent of the community, EYE holders in particular.

For this reason, this fund has been left dormant until these conditions could be fulfilled. I believe that time has arrived and I would like to put forth a proposal to the community that will be decided by a quadratic vote through Snapshot.

Pooltogether is a protocol for no-loss prize games. A no-loss prize game is a lottery where your ticket is refundable if you don’t win. It started initially with allowing users to stake Dai in a staking contract called a pool. The user would be issued tickets in proportion to their stake. For instance, staking 95 Dai would generate 95 tickets. The entire pool would be deposited in Compound and earn interest over the course of a week. At the end of the week, 1 ticket would be randomly selected to win all of the accrued interest. The other tickets would either roll over into the next draw or could be redeemed for the original Dai payment. In other words, no one losses but one person wins big.

Since those early days, they’ve expanded into other markets and tokens but the overall principle is the same: group yield, one winner, no losers. Recently they’ve opened up their smart contracts to third party tokens in their community pools. Here, anyone can create a pool for any ERC20 token using their community pool builder. With it you can set parameters such as how often the pool should draw a winner and how the random number should be generated. You can also choose how the reward should be derived. On the one hand, the pool can be deployed to a DeFi strategy and then reward 1 ticket with the accumulated yield. On the other hand, a pool owner could just provide a stash of reward tokens which is handed to a randomly selected winner, creating an ongoing defacto airdrop lottery.

  1. Create a Pooltogether community pool for the ETH/EYE LP token. In order to play, you stake your ETH/EYE LP.
  2. Set aside 50000 EYE (just less than $20k at current prices) from the liquidity mining fund to fund a weekly reward of $1000 to a randomly selected LP staker. To put these numbers into perspective, if we were to set the reward to 1000 EYE per week, it would take 48 years for the fund to deplete. If we assume that this initiative boosts the price above $1 then $1000 per week prize would be less than 1000 EYE.
  3. If the uptake is eager and the initiative unambiguously increases liquidity, we open another pool for a different token.
  4. If the success is particularly overwhelming and the price of EYE rises significantly, we can increase the weekly dollar value of the reward to encourage further staking.

There are a number of EYE LP tokens to select from and each has its advantages and disadvantages. It’s important in this initial phase to pick the one that would have the largest positive net impact. EYE/SCX would boost the liquidity of both tokens and increase automining but is not recognized by the Uniswap router since it doesn’t contain any of the major trading tokens such as Dai, WBTC or ETH. As such it wouldn’t garner as much external attention as EYE/USDC which, when active, attracted a great deal of bot trading activity. In the end, we wanted to make sure that if we pick one token, we don’t create a perverse incentive for holders of other LP tokens to unwind and move across to the Pooltogether favoured token. As such, the first suggested token will be EYE/ETH since it contains the most liquidity, thereby suiting the largest number of existing LP holders. EYE/ETH is also favoured by the router and by trading bots since it contains ETH. For this reason, it should attract increased external traffic.

Once this initiative takes off and grows in popularity, we can begin creating pools for more tokens. We can also begin expanding to Sushiswap LP tokens, creating mirror pools for EYE/ETH SLP, EYE/SCX SLP and so on.

In order to advance with this proposal, a Snapshot vote will be put forward on whether a tranche of 50000 EYE can be set aside from the liquidity mining fund in order to be used as reward for a Pooltogether community fund.

The vote will be quadratic of EYE holdings to dampen the effect of whale influence. The last inaugural Snapshot vote was an overwhelming success and we look forward to your eager participation again! Details of the vote will be announced in Telegram and Discord.



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