Launch Kashi farms on Polygon

Summary

I would like to propose the launch of Kashi farms on Polygon.

Abstract & Motivation

Kashi farms are a valuable instrument for incentivising lenders to keep their assets on Kashi by allowing them to earn additional yield on the Kashi tokens (km-) they receive from depositing assets.
Said farms are currently available on the Ethereum mainnet but not yet on Polygon, where users’ Kashi tokens offer them no additional value.
Launching Kashi farms on Polygon would attract more liquidity into Kashi and make the platform’s availability of lendable assets more reliable both during market swings (when lenders might be tempted to use their assets elsewhere) and during lulls (when borrowed % goes down and APRs drop), both of which are very desirable qualities in a lending platform.

Specification

Lending pairs with high liquidity and high borrowed % would be prioritised as they both contain the most assets (in $ value) and are the most requested by borrowers; currently the top 5 are:

  • USDT lent / WETH collateral
  • AAVE lent / USDC collateral
  • USDC lent / WETH collateral
  • DAI lent / WBTC collateral
  • DAI lent / WETH collateral

A snapshot of the top X lending pairs could be taken at a specific block if the proposal were to be formally approved.
Monetary incentives to bootstrap the farms would need to be allocated as well, together with a marketing budget to publicise the launch and thus capture additional asset inflow from the public.
How much to allocate, for how many farms, for how long and with which emission curve are topics beyond my expertise so I’d like to ask the community to please pitch in and discuss the actual numbers.

For

  • attract more liquidity into Kashi
  • make the platform’s availability of lendable assets more reliable

Against

  • opportunity cost of allocating rewards, developer time and marketing effort to launch Kashi farms on Polygon instead of working on other features or subsidising other activities

Poll

Kashi on Polygon, yes or no?
  • Yes
  • No

0 voters

If you answered yes, what resources should we allocate?
  • 5 Kashi farms on Polygon, initial reward 100 Sushi/day for each
  • 5 Kashi farms on Polygon, initial reward 50 Sushi/day for each
  • 3 Kashi farms on Polygon, initial reward 100 Sushi/day for each
  • 3 Kashi farms on Polygon, initial reward 50 Sushi/day for each

0 voters

3 Likes

Sounds good !
Bootstrapping liquidity on Kashi on polygon is probably better than on mainnet.
Low gas cost will make Kashi more efficient !

3 Likes

As a bit of Matic Maxi, who feels like it’s been one of the most successful deployments so far. I think it can make sense to incentivize Kashi farms on Polygon.

Just being in #Kash, it’s the most requested feature, and by more Polygon users than anything. There seems to be a demand.

Have staked tokens over at gemstones.finance, myself. Which is a great project, and still the only place I know to stack them at the moment. Though many I speak to would much rather stay on the platform, and so would I ideally.

We also know there is a market for lending on Polygon, with the popularity of Aave’s initiatives.
I can easily foresee a migration of funds were this to go ahead.

I think it’s important to iron out how long the commitment would be intending to last.
Perhaps it could fall in line with existing commitments to incentives on Polygon.

2 Likes

I think incentivizing use of Kashi on Polygon is a great idea! Just like Maka stated, I think it is important to narrow down how long these incentives will last and if any Polygon incentives could be used for these farms as well.

Increasing usage of Kashi on Polygon, where fees are drastically lower than mainnet, will increase participation and general knowledge about the protocol in the community. Since Kashi employs a different market structure than other lending platforms (Aave, Compound, etc), there is a knowledge barrier to entry. Given that fees on mainnet are still relatively high for majority of small traders, participation of this group in Kashi may be lower because of the higher initial cost to experiment and learn. Ultimately the more people we can get to use Kashi the better, and incentivizing use on Polygon will increase the number of people knowledgeable about Kashi, leading to greater network effects overall. Looking forward to more conversation on this!

2 Likes

As a user of kashi on mainnet I would really like to see this feature. It’s difficult to use kashi as intended on mainnent with the consistently high gas fees that we’ve seen recently and the farms have been the only thing making it worthwhile to keep my funds locked up. I’d prefer to move my funds to polygon so I can be more efficient with my lending, moving between pairs based on demand. I switched from one kashi farm to another today on mainnet and it cost 162$ in gas with a gas price between 75-82 wei per transaction, so it’s not really possible to move around often on mainnet even with a considerable amount of funds on the platform.

2 Likes

This is a great idea! can’t wait to use this!

2 Likes