To preface I will start with why PICKLE is strong on Ethereum in order to set the stage for why it is so weak on Polygon and Arbitrum.
Pickle Finance has very strong mechanics that capture liquidity and incentivize users to stay in the ecosystem as well as increase their position over time via the DILL mechanism. Any user can choose to participate in Pickle Finance without even knowing what DILL is, but the moment a user has DILL he gains a great deal of advantage over non-DILL user. Aside from voting rights on proposals, DILL holders also increase their rewards on farms outright (the primary reason for anyone to use Pickle Finance in the first place is yield/rewards) and also get revenue share from the platform. As such, while a non-DILL user may find it profitable to use Pickle Finance because of its auto compounding services saving them on gas fees, a DILL user will find themselves swimming in far more PICKLEs and thus far more $.
In order to obtain DILL, a user must first obtain PICKLE, which means either buying it or by providing assets to Jars to be able to farm it. The first scenario increases the value of PICKLE (buy pressure), the latter increases the total revenue of the platform (which also happens to increase buy pressure due to revenue being distributed in PICKLE). Both of these increase the attractiveness of TVL to Pickle Finance because a more valuable PICKLE means more profitable farms and higher revenue means greater reason to want DILL. Not only does locking more PICKLE increase DILL, but so does increasing the lock time. So in order to get the most DILL, a user must both/either commit the most value (PICKLE) and/or time (lock time) to the platform if he wishes to reap the greatest rewards. While these mechanics increase the value of PICKLE / DILL and/or revenue that’s not what I see as most important. Rather, the important thing is that the moment a user has DILL, they are greatly incentivized to remain in the ecosystem. Once you have DILL you open up access to greater rewards and as such are far less likely to find a better place to take your assets. Furthermore, leaving Pickle Finance while you hold DILL is like leaving free money (bonus PICKLE) on the table that you could be making in Farms. While nobody is forced to keep their assets in Pickle Finance once they have DILL, nor is anyone forced to have DILL to make farming “worth it”, the system serves as an extremely powerful way to not only draw in users and their assets, but also encourage them to stick around.
So why is Pickle Finance so lackluster on Polygon and Arbitrum? There is simply no system such as DILL in place on either one. There is no reason to obtain PICKLE other than to build an LP position and there are zero incentives in place for users to remain in the ecosystem. If a user has no intent to bridge farmed PICKLE back to Ethereum, then there is ultimately only one thing for them to do with it: sell it. The PICKLE token becomes nothing but fodder for farmers and something that is just sold for greater yield. This does absolutely nothing positive for Pickle Finance and actually degrades the attractiveness of the platform in general because sell pressure on PICKLE means a less valuable PICKLE and thus less value returned via farms. The only thing encouraging users to utilize Pickle Finance on Polygon or Arbitrum is the amount of PICKLEs we are willing to print and their market value (value which is hurt by sell pressure on these chains) in order to attract liquidity. Furthermore, which is extremely important to note, is that automatic yield farming is far, far less useful on Arbitrum and especially on Polygon. While the gas fees on Ethereum mean that socializing the gas costs for everyone can mean much much higher gains for the individual over time, the gas costs on Polygon especially are so trivial that a user doesn’t really save any money by using Pickle Finance rather than compounding on their own. At best, Pickle Finance serves as a tool for people who are very lazy and would benefit from frequent compounding. But outside of these lazy farmers, if the value of PICKLE or the amount of PICKLEs we are willing to print drops, then nobody is going to want to subject themselves to a 20% performance fee for something they could do themselves for $0.01 of transaction fees.
It is my opinion that until DILL is expanded to affect sidechains/L2s then Pickle Finance is at best unimpressive and at worst pointless for most users anywhere other than on Ethereum.
I have not ventured in Arbitrum yet but I am very familiar with Polygon. There are several platforms that offer DILL-like mechanics which increase rewards for users who commit to and stay in the ecosystem. There are also several platforms which have extremely low performance fees (as low as 1%). If a user wants to truly be a yield farmer they have three options. Take their assets to an ecosystem that offers greater rewards for staying there, to a platform that has extremely low fees and offers pure yield, or go to Pickle Finance and hope that the value of PICKLE stays high enough so that they can just sell it off in order to make sure that having their assets there is worth it.
A final thought in regard to this is that we made the decision to triple PICKLE emissions in order to draw TVL to new chains. As I have explained, attractiveness of Pickle Finance on these chains is almost 100% dependent on the value/amount of PICKLE being distributed to their farms. If emissions return to normal there will be 1/3 the reason to use Pickle Finance on these chains. With this, and the fact that the value of PICKLE has continued to decline over time (high inflation can do that, you know), I find it unlikely that we will ultimately be able to attract much value/users to side chains.
I know that “DILL on sidechains” is SOON™, but imo we have already lost the opportunity to capture quite a lot of TVL that has instead wound up committed to ecosystems that already have such systems in place and we will continue to miss out on these users and revenue the longer we keep putting it off. Instead of having first mover advantage we now have no advantage and the longer we wait the further far behind we will fall.