In order to incentivize a high-quality stream of integrations, this proposal aims to create an affiliation program, where an individual or an entity who will facilitate a successful integration of B.Protocol into an existing or a new Fuse pool, will be rewarded with 10% of the DAO stream of revenues generated by that specific pool’s Admin Fees and its liquidation profits.
B.Protocol offers a user-based backstop as an improved liquidation engine for DeFi lending markets. Fuse is a permissionless, isolated lending markets platform, where anyone can open a “Pool” and list whatever assets they wish to enable a lending and borrowing market with set interest rate curves.
As B.Protocol growth is measured, among other metrics, by its integration base, aligning incentives for these integrations to happen can facilitate a better rate of successful integrations. An affiliation program can create the required alignment as it opens the opportunity for those who work on such integrations to get rewarded for it, growing the “growth team” of B.Protocol. Another desired outcome will be harnessing the internal Business Development teams of projects who look to open new pools on Fuse, as well as those who already have an active pool without a backstop integration.
A B.Protocol affiliation program should incentivise active, long term, and successful integrations. As such, the rewards are suggested to be streamlined from the Admin Fees and the liquidation profits that will be generated on the integrated pool - the more successful and long lasting the integration is, so will be the distributed rewards.
The Admin Fees on Fuse are being generated by the borrowing activity of the pool and are set by the pool’s admin, with a default set to 10%.
I propose to distribute 10% of the DAO’s revenues from a pool - to the affiliating individual/entity that will facilitate a successful integration.
The revenues of the DAO from each pool are generated from the pool’s Admin Fees and liquidations’ profits made by the B.AMM.
A successful integration of B.Protocol with Fuse can be for an existing or a new Fuse pool, which runs on Ethereum mainnet, Arbitrum, or any other network that will be supported by the Fuse platform in the future.
This proposal is posted in the #ideas-discussions category for feedback and comments from the community for the coming 5 days.
After 5 days of posting this under #Ideas for Discussion it will be posted under #Proposals with whatever comments that will be taken from the discussion, for a minimum of 48 hours and then posted as a formal BIP with a Snapshot to be voted on by the DAO.