Jared Kehlmann, Market Curator & Community Manager
Liam Kovatch, Head of Engineering
Dylan Golow, Technical Product Manager
Revised proposal to extend, and slightly expand, UMA-denominated liquidity mining rewards on Polymarket for 12 weeks with consideration for a longer extension, based on KPIs, that will be proposed and voted on in the extension period.
This UMIP is a revision of Polymarket’s initial UMIP “Funding Request for Liquidity Mining Program Extension from Polymarket”. Based on discussions and the pending snapshot outcome, the funding amount of the initial proposal was too aggressive for the UMA community to get comfortable with, but there is expected agreement for a shorter proposal as suggested by community members and RL team members. As such, this proposal is meant to act as a bridge extension of the UMA-denominated liquidity mining program, on Polymarket, which ends May 14th 2022. A follow up proposal will be made during this proposed extension period which will suggest a further extension that will be based on explicit, community-informed, incentive-aligned metrics and will be structured using UMA KPI options. For the purpose of this proposal, the initial, successful integration should serve as the completed KPI that motivates such funding. Under this initial extension period, Polymarket is requesting 160,000 UMA over a 12 week period which reflects a slight (1.33x) reward-rate expansion.
Additionally, to accommodate a quick turnaround on this proposal Polymarket also proposes the following one-off changes to the UMIP proposal process:
- 2-day discourse vote
3-day snapshot vote with 4.5M UMA quorum requirement
See the prior proposal for a complete description of the value add of Polymarket and this UMIP. A simple rationale for voting on this proposal should be if you think a long-term partnership with Polymarket increases the value of UMA by more than 0.16% you should vote YES, since Polymarket is only asking for that much UMA.
- Polymarket’s integration
- Polymarket significantly increasing the total economic value and activity within the UMA oracle network
- Polymarket battle testing UMA oracle hardness
- Polymarket growing the UMA community
- Polymarket serving as a signal that UMA works at scale for other projects
- Polymarket’s UMA-secured OI can be supercharged with extended reward experimentation
- Contributing valuable protocol feedback
The deliverable of this proposal is two fold 1) Polymarket’s integration of UMA (completed) and 2) prolonged incentivization of activity on UMA-resolved Polymarket markets with specific concentration on liquidity incentivization and LP fee rebates for traders. The proposed rewards distribution schedule is defined below:
160,000 UMA delivered to the following mainnet Ethereum multisig address:
The wallet is a 2 of 3 gnosis safe multisig. Two signers are Polymarket representatives and the third is Risk Labs’ multisig. Risk Labs’s position as a signer in the multisig does not represent an endorsement of the proposal; they are a neutral party.
Polymarket is a leading decentralized finance (DeFi) project, with a global, technical team. It is the largest decentralized prediction markets platform in the world by volume.
(below section was added on 5/12/22)
Based on conversations with the community and members of the Risk Labs team, Polymarket wants to make an explicit clarification around its future expectation of rewards. Some UMA community members are concerned that Polymarket will make continuous funding requests for additional tokens and/or that Polymarket’s partnership with UMA is contingent on these funding requests.
Polymarket would like to clarify that this is not true: Polymarket has no expectations around additional funding requests, and Polymarket is excited to continue to deepen this partnership with UMA regardless of how the UMA DAO considers future proposals. Polymarket hopes to contribute in a net-positive way to the ecosystem and commits to approaching future DAO proposals with zero expectations and making them a collaborative process that produce positive sum results. "