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id Title Status Author Description Discussions to Created
TIP-228 Reintroduce referrals system Draft Danijel Reintroduce referrals system with some changes https://discord.gg/thales 2024-09-30

Simple Summary

Reintroduce the open referral system that will reward referrers on losing bets. Reduce THALES bonus payout.

Abstract

This TIP proposes to reintroduce the open referral system. The referral system will differ from previous system as it will only reward referrers when users lose bets, therefore mitigating the self-referrer manipulation. Reduce THALES payout bonus, as with the referral system, the additional bonus imposes a risk on THALES LP pools.

Motivation

TIP-221 changed referrals system from open to invite only. This was done as the open referral system didn't get the protocol the results it anticipated and it was moslty used for self referrals.
With the Overdrop campaign, we are seeing more and more organic users on the platform, and there is an increased interest in users applying to be ambassadors. While the invite based system can still be used to enable such users, it generates a lot of overhead for protocol DAO to manage who is worthy of being whitelisted, and it also puts protocol DAO in a position to decide that without a clear guideline. Additionaly, most users are not aware that they would need to apply to be ambassadors, so at this point I strongly believe we need to reintroduce the open system to not inhibit our growth potential.

Too somewhat offset the self-referrals abuse, the system would only pay out the referrals on losing bets. The amount of referrals will be the same as previously defined:

  • Normie tier = 0.5% of volume or 25% of protocol fees
  • Silver tier = 0.75% of volume or 37.5% of protocol fees
  • Gold tier = 1% of volume or 50% of protocol fees

By reopenning referrals, the THALES LP pool is put to additional risk with the current 2% bonus payout. The said pool has been generally underperforming recently, and I believe the bonus needs to be halved to 1%, which still gives users an additional reason to use THALES as collateral.

Specification

Re-enable open referral system, but pay out referrals only on losing bets, per previous tiered system.

Halve the THALES payout bonus from 2% to 1% to offset the potential self-referral abuse and in light of THALES pool recent performance

Implementation

TBD

Copyright

Copyright and related rights waived via CC0.