Liquidity Program Suggestions for Second Lending Pool

This thread is being started to collect feedback from the community about ways to achieve broader participation in the second loan pool which will launch in July.

Background: The $3.5M increase in the Orthogonal Pool was quickly absorbed by several whale deposits which meant a number of community members were unable to participate. We will have the next Maple loan pool launching in early July and would like to work collaboratively to deliver a better outcome.

Suggestions welcome below.

  • Have a first round with a maximum deposit of 5k USD for 48h before opening the remaining liquidity available for deposit to others
  • Let the community people to stake their MPL token acquired while waiting for pools to enter
  • Create a whitelist of community members that would like to participate in the next lending pool

The main goal of this update is to give everybody a chance to deposit. So here are a few great ways to do it imo:

  1. Raise available space for DeFi rounds by a lot or potentially let DeFi crowd first and institutions could fill in the gaps. Power to the people! Institutions are taking too much space and we’re left fighting for the scraps
  2. Put a deposit cap per wallet, so that 200 or more individuals can take a shot ( available space / 200 is the $ cap). The lower the cap, the harder it is for a whale to scoop up everything through multiple wallets
  3. Potentially create whitelisted spots for the most valuable community members. It could drive healthy activity in the community if done right
  4. Short term MPL staking, without giving an edge to large hodlers and having a negative impact on the overall tokenomics

Agree with @Erebos and @Baowolf’s sentiments that the main goal is to give more people a chance to deposit.

Idea: create whitelisted spots for community members with a soft cap per individual. Members of the discord and telegram can submit their wallet address and requested allocation. Allocations would be sized to try and ensure everyone is able to participate. If interest is oversubscribed then priority would be based on time in the community and level of engagement.

Further commentary:

  1. INSTITUTIONS: Understand there is mixed sentiment around institutions in DeFi. Back in Feb/March before launch, we worked to get institutional commitments to lend through Maple. This helped de-risk launch by guaranteeing runway to meet borrower demand. A lending platform with nothing to lend would have been a one-legged man in an ass-kicking contest after all.
  2. The last of these commitments will be completed in the launch of the second pool. After this we will have an opportunity to design a new liquidity and rewards program taking into account the current market paradigm.
  3. HARD CAPS: technically a hard cap on the deposit per individual cannot be enforced at the smart contract level. Hence a viable alternative would be a whitelisting solution for community wallets.
1 Like

Your idea sounds good to guide the next few rounds. It would be helpful to do a survey to know how much capital the community is trying to commit, so that we can design a fair system based on it.

Commentary appreciated! Most of the community can understand the situation. We just want to have equal access if not priority over institutions when possible. Little bit of patience then!