PEP-25: Reversing PEP-5 and seeding wPOKT AMM liquidity



This proposal intends to reverse the proposal: PEP-5. The rationale for this has been outlined here and PEP-21 Bypass wPOKT LBP and go straight to the bridge.

To that end, Pocket Network, Inc. will not be claiming any of the POKT allocated by PEP-5. This includes any of the tokens outlined below:

However, we still intend to launch wPOKT to open the Pocket Network ecosystem to the benefits of the ERC-20 format. This launch will require a small liquidity pool, and this proposal seeks to introduce a budget with this narrowed focus in mind. Other potential options are outlined in dissenting opinions.

While we’ve been approached by community members who are willing to provide liquidity on the AMMs, we’d still like to provide a baseline of wPOKT AMM liquidity. Based on our calculations, we have determined that we should target 1M POKT on the bridge as an initial seeding. In addition to this, we propose the Foundation provide the equivalent amount of USD(C/T) for a 50/50 pool. These numbers were calculated by determining a slippage threshold of 3% at a $25,000 transaction. This allows us to keep bridge risk to a minimum while enabling a new venue for others to purchase wPOKT. Users will be natively incentivized to provide additional liquidity which will only prove to increase the performance of the pool.

Please view this model to see the math at current prices. Key assumptions:

  • Liquidity is provided at all prices

  • Fees aren’t included in calculations

I am therefore proposing that we allow for a week window for the POKT community to send their own POKT to the bridge to provide liquidity on Uniswap. Once the week timeframe is elapsed, the bridge signers will complete the minting process of wPOKT. wPOKT will then be able to be used to provide liquidity in the Uniswap pool.


I’ve written a full-length post about exactly why we are no longer proceeding with the wPOKT farming application as originally planned. Please find that here: [link]. Due to this, we no longer have need for the initial amount requested in PUP-5. Outside of having flexibility for governance payments and another on-ramp through an AMM, the scope of wPOKT is limited. With a narrower scope, we should reduce the budget.


  • 1M POKT from the DAO Treasury allocated to the AMM pool

  • 830,655 USD(C/T) from the Foundation Treasury allocated to the AMM Pool (amount subject to change based on POKT price)

  • 1M POKT from the DAO Treasury to the Foundation Treasury offsetting the prior bullet’s USD(C/T) transfer


Since we are no longer launching the wPOKT farming app, and the others are already seeing the potential lack of needing to do an LBP, I believe we need much less POKT for the bridge to execute on what we’d like to use wPOKT for.

This proposal only covers the need for governance wPOKT payments from PIP-8 and PEP-16.

Dissenting Opinions

Why don’t we do an LBP? While an LBP would provide a natural backstop with purchases used to provide liquidity, the general sentiment in a recent proposal is that there is no need for an LBP given the recent listings. The LBP cancellation proposal will go to a vote; if it is approved, then no LBP will be done, if it is approved, a new proposal should be voted on to agree to a new LBP budget, since the original proposal is now outdated and likely allocates too much LBP budget for these new circumstances.

What about an incentive program to seed liquidity? While helpful, I would prefer to see what the natural demand for providing liquidity on wPOKT is before deciding to use DAO treasury resources to incentivize further depth in DEXs.


  1. Set start and end date for the initial seeding of wPOKT bridge
  2. Release documentation on how to use the bridge
  3. Launch wPOKT Ferrum bridge
  4. Allow for 1 week of bridge seeding by community members.
  • If you plan on sending POKT through the bridge, you’ll need to match it with the correct amount of USDC on Ethereum. For example, if you send 50k POKT, you’ll need $40,000 in USDC to match.
  1. Calculate the difference required to make up 1M POKT seed, then disburse from the DAO treasury
  2. Complete wPOKT minting and create Uniswap wPOKT <> USDC pool


Copyright and related rights waived via CC0.


I strongly support this proposal.


I support this proposal as well.


Proposal gud, Lex support.


Wouldn’t protocol owned liquidity be more beneficial in the long run and allow for self reliance instead of borrowed liquidity thru farming rewards?

I’m implying using olympus pro to sell wPOKT bonds. Aka sell wPOKT at a discount in exchange for wPOKT/ETH LP or wPOKT/usdc LP.

These LP position would ultimately be owned by the POKT treasury in addition to any other LP providers and would allow for sufficient liquidity and help minimize slippage. Of course a portion of all bonds would be paid to Olympus for the service but I think it would also get broad visibility to the availability of wPOKT.

So, could there be a point 7. Sell wPOKT bonds to increase protocol owned liquidity once AMM pools are created.

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Hi! I am from OlympusDAO under the Olympus Pro team. Personally I have been waiting for wPOKT to launch for us to work together. I have reached out to jackal a couple of weeks ago re: OP.

Seeing this now, I would like to share with the community on what OP can offer specifically for PEP25 and how it provides mutual benefits both for the protocol and its community:

  1. We will work together with the team to design a bond program based on the targeted liquidity you want to achieve. With the target in mind, we are able provide advisory on factors such as program duration, vesting period, sustainable emission rate and etc based on the data we have from the 60+ partners we worked with.

  2. We will create custom contracts of which you will have 100% control over.

  3. The OP bonding program allows the community to acquire $POKT at a discount by providing the wPOKT/USDC LP to the protocol which eventually can achieve the targeted liquidity it seeks to achieve. This will thereafter provide an additional revenue stream to the protocol earning trading fees on its liquidity.

  4. This will work out to be cheaper as no emission required to incentivize LP providers thereafter and completely removing any liquidity flight-risk since the LP is now owned by the protocol.

  5. Pokt can also leverage on the Olympus’ community for joint marketing of the bonds sales. Our current community is circa 82000+ in Discord and 150,000+ on Twitter.

  6. OP team members will be available to participate in the AMA with the POKT community to address any queries on the OP program

  7. We offer bond discount monitoring bots set-up in your Discord


This proposal is now up for voting Snapshot

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glad you posted this.

obviously in support.

Can you dm me on telegram? @thunderheadotc

I’ve been thinking about bonding for our liquid staking offering :slight_smile:

Whats the rational behind not allocating this liquidity to something more capital efficient like univ3?

I understand it would require more active management, but this is something that could be delegated to the foundation. Someone there will be handling the liquidity provision operationally anyway.

Sure! I have sent you a msg on TG.

I strongly feel that a project with the quality and size of pocket should not be launching a $1M liquidity pool on eth as the primary pool.

This is not enough for anyone to purchase a meaningful amount of pokt. IMO we should look to get up to $5M target at a minimum through amm incentivies if need be.


Happy to see your reply, let’s work together!

Generally in favor of all this. I do think it should be a separate proposal though. Personally, I don’t think it should be this or that but rather this and that so the community has options in participating in the wPOKT ecosystem.

What’s your Discord handle?

I can add you to an existing OlympusDAO private channel in our Discord server and collaborate on a new proposal from there :+1:

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Sounds good. Happy to answer any queries and explore the various options the community would like to have. You found me! devoltaire#7582

POKT is a big protocol and given the positive market sentiment around the infrastructure layer, a $1m liquidity pool is almost certainly to be too small. With Olympus Pro, we can easily spin up a customized bond contract for you say wPOKT/ETH, wPOKT/USDC or any other pairs within 72 hours.

You have the option to do it in phases (various bond sizes) and/ or concurrently (different bond sizes and different LPs) and use the initial launch to gauge market demand.

AMM incentives definitely helps to drive the bond sales to enable the protocol to own the LPs at a faster cadence.


This proposal has passed Snapshot