[RFC] Invitation for Community Strategists

Motivation

At Pickle Finance, we have harnessed the community’s collective talents on different initiatives such as marketing, content creation, and outreach.

Now, we want to tap into our community’s engineering abilities to help expand the possibilities of our core product - the PickleJars.

Pickle Finance has developed a strong reputation in the yield farming space as a safe and reputable yield aggregator. The pickle-ui repo was also recently open sourced, opening up another part of the Pickle stack. This puts us in a position to attract and to partner with the best talent in DeFi.

Proposal

Community Strategies who devise PickleJar strategies which are selected for inclusion by Pickle Finance governance will be entitled to a percentage of profit fees.

Entitlement to fees

Currently, the 27.5% fee taken from PickleJar profits is broken down as follows:

  • 20% to Treasury
  • 7.5% to dev fund

As a starting point, PickleJar profits from strategies by Community Strategists can be given a more favorable allocation:

  • 17.5% to Treasury
  • 10% to Strategist

This is not the final proposal and other reasonable distributions will be considered. For example, we may wish to give a higher percentage of profit fees to Strategists to more aggresively attract the best developers to Pickle. For reference, Yearn has recently increased their Strategist allocation to 10%.

Requirements

The framework for accepting PickleJars can be fleshed out as part of this, or in a future discussion, but it should comprise at least the following basic parts:

  1. The prospective Strategist will create a post in the Strategies section detailing their proposed PickleJar strategy
  2. The community confirms interest in the proposed strategy through a Snapshote vote
  3. The Strategist implements the accepted strategy

Strategists are expected to bear their own development, testing, gas, and monitoring costs.

Conclusion

We invite your thoughts and comments on this proposal. Insights on particular implementation details are welcome as well. We look forward to propelling Pickle Finance to the next level through creating partnerships with the leading minds in this space.

10 Likes

So even if a contract is developed by community strategists, Pickle treasury still needs to pay gas for harvesting… and Pickle dev should also deserve a little love too!

Proposing
18.5% treasury
7.5% strategists
1.5% Pickle Dev

This way strategists still get 7.5% total profit (same as current 7.5% dev fee)

Pickle Dev team also need to spend time to check the code too and needs to be rewarded.

@Larry_Cucumber
I am left open with a few questions after this proposal:

  1. Do you guys (0xpenguin especially) still plan on releasing strategies that follow the proposed rules here?
  2. What happens to the 2% of all $PICKLES minted that go to DEV treasury? Would you guys consider those your payment for reviewing new strategies and working on other things relevant to the Pickle protocol?
  3. Seeing as this is a further step toward a full DAO, how do we deal with controversial governance topics in the future ?

I don’t expect 100% clear answers for these questions, but I think it’s important to raise them.

These concerns aside I think it’s 100% a step in the right direction and voice my full support for this proposal.

@Creat0r Being competitive with Yearn’s new implementation is really important and I don’t think we can reasonably go under 10%.

3 Likes

This made me think further… we should really differentiate NEW strategies vs forked strategies…

For forked strategies, we pay less, as the difficulty level is less.

For NEW strategies, we pay more, as it takes relatively more effort to do.

Yearn strategists are welcome to bring their strategy to Pickle and make extra income but their gain share should be capped. Don’t know the number yet but let’s start with 5% (no math behind it). I’m sure the community can come up with some cool analysis.

3 Likes

Great decision! Maybe the best one yet…

I love this concept. I would advocate a decaying function to compensation for strategists. One as a way to increase the profits of continuous users over time, also as a way to provide further incentive to good strategists to continue development.
I would think the decay function wouldn’t kick in after some period or threshold is reached.