VBP8 - Setup trading games using Community Adoption Fund

VBP8 - Setup trading games using Community Adoption Fund

Setup three different trading games using the Community Adoption Fund (CAF), as follows:

  • Traders will be ranked by relative PNL, and can qualify for rewards in three categories:

    1. Traders that stake at least 1,000 VEGA tokens will be eligible to share a prize pool of 1,000 VEGA each day
    2. Traders that hold an average notional position size of 2,000 USDT in a given epoch will qualify to share a prize pool of 1,000 VEGA each day
    3. Traders that hold an average notional position size of 30,000 USDT in a given epoch will qualify to share a prize pool of 850 VEGA each day

Additional details:

  • All rewards will be locked for a period of 30 days, after which they will vest at a rate of 25% of the vesting balance each day
  • The maximum amount receivable in a trading competition will be capped by the fees paid by each trader in a given epoch at a ratio of 5000:1 (for example, paying $1 in fees will result in rewards being capped at $5000)
  • The games are proposed to run for the next 30 epochs, allocating a total budget of 85,500 VEGA to trading competitions in the next month
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Hi David,
Thank you for your proposal. Few questions:

  • how is the pool shared? is it equally shared by all eligible users or there is a ranking or is proportional?
  • I assume the game will happen on mainnet but you didn’t mention it: can you confirm it’s the case?
  • I’d like to see more details about the communication around the game: I’d like to see new users on Vega so that the project will gain visibility. How can we attract them? we should maybe allocate an extra budget to cover the marketing effort

Happy to help and set it up in case you need help!

Marco

Hi, it sounds like a good idea. I don’t know who would be in charge of setting up the game at the code level, but I would support it if you need a vote in governance. It’s quite similar to the last one that was held, it feels like a continuation. I’m not sure if it’s better to wait until we have more markets to attract new users, In the future would be possible to do one of realized gains in each epoch later on and include markets like Apple or Microsoft. The limitations of the protocol or oracles today for integrating these markets can be discussed, but it would be great to see them this year and funded with the CAF.

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Please do start a thread if you have ideas for improvements or tweaks to the features available to competition creators in the protocol.

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I see the proposal is already up with very little feedback from community members, would’ve been nice to have some more time for discussion.

It also would’ve been good to have details about which markets are affected (I assume all) + how the ranking system and reward distribution will work.

I’m all for using CAF funds for trading games but I agree with @marcotor that there is no real aim/goal outlined in this proposal. Why 85k VEGA? what communication efforts will be done to let people know about it? etc.

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Hi all, thanks for the input and questions, I’ve responded as best I can below:

This proposal is a continuation of the trading games previously set up and funded by the project team. While it might not be perfect, I believe it’s better to do something with the CAF funds than have them sitting there idle and not being used for months. Notably, the team will fund a further 1,800,000 VEGA if we utilise the existing 200,000 VEGA and engage with the initiative. With that said, I don’t think 85k tokens is a huge allocation to demonstrate:

a) that we’re able to engage with and utilise the CAF, and
b) ensure that ongoing incentives exist to attract traders

Separately, I think it would be worthwhile discussing how to use the CAF to carry out marketing activities, and it would be good if that happened in this thread and alongside re-creating the games.

Remember, even if this proposal passes, it doesn’t mean the games need to run unaltered for a whole month with the settings proposed above. They can always be cancelled/amended again via governance vote.

With respect to the question about ranking, the following settings are used:

  • Traders ranking in the top 20 by PNL will qualify to receive a reward
  • Rewards by position are as follows:
    1. 20%
    2. 10%
    3. 10%
    4. 6.5%
    5. 6.5%
    6. 4.25%
    7. 4.25%
    8. 4.25%
    9. 4.25%
    10. 4.25%
    11. 2.575%
    12. 2.575%
    13. 2.575%
    14. 2.575%
    15. 2.575%
    16. 2.575%
    17. 2.575%
    18. 2.575%
    19. 2.575%
    20. 2.575%

@marcotor yes this is a Mainnet initiative.

@AngelDelN I suspect that creating markets on listed securities might attract some unwanted attention from regulators at this stage. IMO, it’s a nice goal to have for a time when Vega is more successful and can withstand the heat that might come our way if such markets are created. Perhaps something like Gold or Oil futures might be interesting and less contentious?