[GF: Phase 0 Proposal] WePiggy

šŸ“œ Grant Proposals Governance Fund: Phase 0
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Project Name: WePiggy
Author Name: Victor
Defillama TVL (at snapshot): $1,618,047
Transactons/day (at snapshot) : 52
Tier: 3
Optimism native: No
Revisions to metrics used: N/A
Number of OP tokens to claim: 300,000
L2 Recipient Address: 0x75F7b331bbDbAcAfe1Ec5ba5215a0FBfc002B3B8
Proposal for token distribution (under 1000 words):

Brief Introduction:

WePiggy is a multi-chain lending protocol, launched on 11 networks, our TVL is around 80M-100M, borrowing volume around 30-40 million.

Weā€™re the first and the largest lending protocol of Optimism for a long time, the total supply market size reached $10M.

Thanks to Optimism Collective for giving us this opportunity to share the governance fund.

Our Goals

WePiggy core development team hopes to use the funds carefully to achieve the following goals.

  1. Participate in the construction and governance of Optimism ecosystem for a long time;

  2. Reward early supporters of WePiggy (Optimism Branch) ;

  3. Attract more liquidity to the Optimism ecosystem and maintain it for a long time.

$OP Token Distribution Plan

Early Supporters: 60,000 $OP (20%)

Airdrop to users who deposited their funds in WePiggy (Optimism Branch) in the early stage, in return for the liquidity they provided to the Optimism ecosystem for a long time;

Early-stage:

From November 15, 2021 (WePiggy launched on Optimism mainnet) to Apr 27, 2022 (OP token announcement)

Distribution plan:

The rewards will be distributed in proportion to the liquidity provided by the user.

Future Long-term Deposit Users: 240,000 $OP (80%)

The largest portion of the funds will be used to incentivize long-term deposit users and attract more long-term sustainable liquidity to the Optimism ecosystem, especially stablecoins.

We will launch a [Term Deposit] feature on Optimism, and distribute this part of $OP incentive to long-term deposit users according to the deposit time and deposit amount.

This approach has been repeatedly proven to be effective and attractive in the Terra and Near ecosystems, avoiding short-term funds without loyalty and bringing in more users with a long-term investment mindset.

Once these users enter and become familiar with the Optimism ecosystem, they will become loyal users to the ecosystem and will not leave easily after the incentives dry up.

Duration:

Long-term deposit rewards would be distributed on a 3-month, 6-month basis.

Co-Incentives

To be fair, we aim to match the token rewards value of $WPC and $OP on a 1:1 basis.

Note: $WPC incentive distribution plan needs to be approved by the WePiggy DAO. The specific distribution plan has not yet been finalized.

More possibilities

  1. After $OP has sufficient trading liquidity, we will launch the $OP lending market and allocate more $WPC incentives, which can also increase the use cases of $OP.

  2. If more $OP token incentives can be allocated to us in the future, we can launch a dual-mining event to attract more funds into Optimism.

  3. WePiggy V2, a safer and more efficient lending protocol we are working on, will be the first to launch on Optimism mainnet.

28 Likes
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Optimism summer is coming!

Great proposal! This distribution plan can cover all the active participants and in line with the governance fund. As the rule of WePiggy liquidity mining program, the more TVL on Optimism, the more WPC rewards.
So, 1:1 incentive is not empty talk. The details, we can talk in WePiggy governance forum after this proposal has been passed. LFG!!

Also, excited to know that WePiggy will launch its V2 first on Optimism, and a new feature of ā€œTerm Depositā€.
Hope I can see a high APY for 6-month-deposit for USDT/USDC/DAI soon :yum:

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Great job, Wepiggy is a trustworthy lending protocol.

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This has be the best proposal, so far. Fair distribution of the token keeping in mind the goal of OP.

Providing incentive on the basis of long term deposit is also an excellent idea, only challenge i see here is the math behind this logic. Reward given for long-term deposit will be dependent on the amount they deposit? This will only benefit bigger fish and high value asset. How are you planning to encourage retail to use your platform?

This is excellent move, multi-sig address managed by governance. This is how you built confidence in a project.

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that is great descision :blush:

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Great, I love WePiggy!

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Because the $OP token has not been officially launched yet, many parameters cannot be determined. What the current proposal describes is a preliminary idea. The specific plan will be sent to the community for a formal proposal.

Based on current reward levels and Optimismā€™s liquidity-building needs, we should focus on encouraging long-term deposits. The reward for long-term deposits is definitely linked to the amount and term. In addition, it is only for the stablecoin markets, not for other assets. We believe this is the most efficient way to improve Optimism TVL.

As long as there are long-term deposits, the borrowing of retail investors will also be active, which will bring more assets. With limited incentives, we cannot choose to benefit all groups, which will make the incentives unattractive to anyone.

Of course, we also proposed in ā€œMore Possibilitiesā€ that if we can get greater support from Optimism, we can take into account the Retail group.

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Thank you for your reply. Few Points.

Why would you need actual token to the math and to prepare a plan? We all know how they are distributing and when is the expected go-live date. Could you please provide more information.

I am not in favor of rewarding ā€œwhalesā€, goal should be encouraging small retail user. Sadly, I dont have any better suggestion. have you thought of giving incentives to new user bridging to OP and using your platform? Also, for these deposits and long term hold, is there any penalty for Sybil users ??

This is true, but do you think its possible to divide them in group, amount + duration of deposit and give incentive according to that, this range you decide with your team and community but the idea would be up to 1K with 6 month would get more reward compare to users in range from $1K-10 and so on.

and of course, proposal to penalize Sybil users. If proven, reward goes to user finding the Sybil user and i would go one step ahead and say that, penalize the Sybil userā€™s deposit by few percent.

1 Like
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Why against whales, what is the standard of ā€œWhaleā€???

If you set too many rules on asset size, just close the door to a lot of money, this is not in line with the interests of optimism and wepiggy.

It is very likely that you just created a situation where a small TVL is dividing the whole incentives, which is awful.

Free money markets can not deal with, and they should not try to deal with this, otherwise, they should enable KYC and set a lot of additional rules.

Without strict KYC process, no matter how many rules youā€™re going to set, if the whales want to participate, they just split their assets into many addresses, so easy.

2 Likes
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in term of LP, I would consider any one a whale controlling significant amount on liquidity. What will happen when liquidity dries up? 70% is allocated to term deposit, what will happen when reward dry up,hop from one project to another?

From what I understood, goal of OP is also on boarding new users along with liquidity.

Yes, I agree with you on this. There is no ideal solution to this, as of now, but I would rather like to see multiple wallet rather than one.

and of-course, lets not jump to kyc, that was never my intention, apologizes if you get this felling from words that I am directing this conversation towards KYC. I was just referring to Sybil penalty and way to encourage and retail more users.

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1/ Without the exact and stable price of $OP, the relationship between the size of long-term deposits and the corresponding APY cannot be calculated. Long-term deposit incentives must be more attractive than flexible deposits, but should not be excessive, so as not to exhaust the OP incentive prematurely;

2/ We donā€™t know the exact launch time of $OP (maybe you know more than we do);

3/ We donā€™t think we should spend too much time distinguishing user types

For a lending protocol, it is simple and clear enough to judge the userā€™s contribution by the deposit term and deposit amount.

Even if a whale address is willing to deposit a large number of funds in the protocol for a long time, his contribution is huge (providing stable liquidity for other users who have borrowing demands).

For retail users, if their amount of funds is not large enough, they can choose a longer deposit term to get more returns, showing their trust and expectation in Optimism and WePiggy.

We agree that the Optimism team hopes to avoid Sybil users who want to get the $OP airdrop as much as possible. But for lending protocols, our understanding of contributions and the distribution of incentives are different.

4/ We originally planned to set different amounts of token incentives according to different deposit amounts and terms. But we donā€™t tend to set complicated rules. Whale users can bypass all restrictions simply by creating multiple addresses. As a result, this only led to unnecessary risks and increased gas costs.

5/ We do not encourage users to report each other, which will tear the community apart and hurt our brand value. We believe that it is enough to initiate proposals, provide transparent, objective, and fair rules, and then users can be rewarded according to their contributions. Whether you agree or not, our team thinks so.

6/ With limited rewards, we cannot accomplish all motivational goals. We believe this is another goal of rewarding new users for entering the Optimism ecosystem. For example, we can initiate a new proposal, suggesting that Optimism provide some $OP, cooperate with Web3 Educaiton projects such as Rabbithole and ProjectGalaxy, and attract new users to use high-quality applications on Optimsim. Of course, in order to avoid Sybil users as much as possible, BrightID binding can be required. We can facilitate this cooperation as much as possible.

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I was about to write my opinion on all your points until I read this. I am gonna save your time and mine and wish you and your project a great success.

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Please donā€™t get me wrong, I just want to express that we donā€™t like users reporting each other, and we donā€™t want to deal with the so-called Sybil users by reporting rewards.

  1. With limited rewards, we cannot accomplish all motivational goals. We believe this is another goal of rewarding new users for entering the Optimism ecosystem. For example, we can initiate a new proposal, suggesting that Optimism provide some $OP, cooperate with Web3 Educaiton projects such as Rabbithole or ProjectGalaxy, and attract new users to use high-quality applications on Optimsim. Of course, in order to avoid Sybil users as much as possible, BrightID binding can be required. We can facilitate this cooperation as much as possible.
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welldoneļ¼Œkeep buildingļ¼ŒWPC to the moon

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I would love to see some OP tokens destined for developer expansion. Grants for training and things like that, we need more builders if we want this to grow.

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Wepiggy is the best.

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In the future too, perhaps identifying Citizens with their soulbound NFT can be used in incentivized projects. This will solve whales splitting their liquidity into multiple wallets. And loyalty will be rewarded by seeing their on-chain activity.

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Nice. but now participation in the dapp is late?

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Long term deposits are a good way to avoid mercenaries. How long will the LP need to deposit for?