DIP-9: Migrating 2 Million DODO to the Polygon PoS Chain for Incentive Programs

Abstract

DIP-9 proposes to migrate 2 million DODO to the Polygon Proof of Stake chain for stablecoin liquidity mining and other incentive programs.

Motivation

DODO expanded its protocol to the Polygon PoS mainnet on June 5, 2021 and is still seeing a good trading volume over the past two quarters without any migration of DODO tokens, and without any liquidity mining incentives. Over the last 3 months, DODO's daily trading volume on the Polygon PoS network has typically remained between $20 million and $70 million.

Polygon has a strong DeFi ecosystem, including lending, trading, and cross-chain infrastructure. Polygon also has low gas fees and a large and active user base. Migrating DODO tokens to the Polygon PoS chain will not only lead to more liquidity, but will also allow us to gain more trading users and allow us to add more application scenarios and instances to attract more new assets.

Rules

DIP-9 proposes to migrate 2 million DODO to the Polygon PoS chain and launch a USDC-USDT liquidity mining pool to enhance the competitive advantage of the DODO protocol in its on-chain stablecoin market and capture more trading volume and trading users.

The fees for the USDC-USDT trading pair on the Polygon chain will continue along the DIP-8 fee model - that is, the LP processing fee will be 0 and the protocol's platform fees will remain unchanged. In this case, the USDC-USDT (Polygon) pair fee will be 0.002%, of which 75% will be used to repurchase DODO and distribute to vDODO holders in the form of vDODO, and 25% will be used for the community vault.

Accordingly, DODO will increase the mining reward for the USDC-USDT (Polygon) pair so that it can compensate for the reduction in fees.

Summary

The USDC-USDT (Polygon) reward is currently 0.44 DODO per block (0.22 DODO each for USDC and USDT, respectively)

If DIP-9 is passed, the DODO protocol will create the USDC-USDT (Polygon) pair and open liquidity mining on it, on the Polygon PoS chain. The low transaction fee of 0.002% will significantly increase DODO's competitiveness in the Polygon stablecoin trading market and is expected to lead to a capture of more trading volume and users.