3m Fee Waiver as Incentive. Increased Fee to Follow

Curators
1

Summary

Keyring proposes EulerDAO temporarily waive fees for the first 3 months on the upcoming permissioned cluster as a cheap, non-dilutive incentive.

About Keyring Network

Keyring Network creates zkVerification for instant on-chain auth using a number of well known websites such as banks and exchanges. The authorisation works in the same way as Google login flow (i.e. OAuth), but permits users to anonymously authorise wallets on-chain with their web2 accounts. Keyring Network is proud to facilitate Euler’s first zkVerified cluster.

Incentive Ask

0-3 months post Launch

  • Set fee to 10%
  • Set EulerDAO fee to 0%

>3 months post Launch

  • Set fee to 20%
  • Normal EulerDAO fee share

“Launch” being defined as the date at which the cluster is announced on Euler social media.

Rationale & Benefits for Euler DAO

EulerDAO can match the significant incentives being provided across the board, just by sacrificing EulerDAO fees for 3 months. This is materially different from token-based incentive programs, as it gives EulerDAO a way to incentivise pools without using tokens.

We expect this market to be bootstrapped successfully, with the inclusion of the EulerDAO fee adjustment, leading to significant adoption and increased revenue to the ecosystem, whilst benefiting early adopters.

Keyring is providing $450k of incentives over the first 3 months into this pool with a further ~$14m of incentives across all permissioned pools, including this, to significantly extend the market growth in combination with TurtleClub.

Including the EulerDAO fee adjustment we can satisfy existing lenders that are willing to commit $50m. In an optimistic case we estimate this market can exceed $300m by 2026. This estimate assumes US interest rate cuts, a continued trend of crypto assets along the 3month lagged M2 money supply and Keyring’s ability to execute on core objectives of mass adoption via zkVerified rates markets. If these assumptions hold, the market should present EulerDAO around $375k per month.

Community

Keyring is committed to growing Euler’s permissioned markets significantly and is grateful for Euler’s support. We welcome feedback from the community and look forward to aligning interests for sustainable growth.

1 Like
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We are excited by this proposal and look forward to seeing the cluster develop. We find the fee waiver a fair compromise to help the market grow well in the first 3 months. We support this effort.

3

Thank you @KeyringNetwork for submitting this partnership proposal. Objective Labs is supportive of this initiative.

We are equally as optimistic about zk-permissioned lending markets and recognize them as an important, relatively untapped niche in DeFi. We are excited at the prospect of Euler playing a pivotal role in the flourishing of onchain permissioned markets with zk technology.

We are excited to see Keyring commit $450k of incentives, which we believe are absolutely necessary to get any lending market off the ground, permissioned or not. The incentive ask as presented is reasonable and in alignment with the DAO’s default strategy of waiving fees at launch for growth. This integration carries negligible costs for the DAO, while potentially bootstrapping an entirely new product line on Euler.

Keyring’s TVL projections are realistic but hinge on various unknowns: the reliability and UX of the zk authentication method, its integration within Euler, and whether the $50m in soft commitments materialize. Nevertheless we believe Euler DAO should welcome trailblazing builders to the protocol, and we believe Keyring’s proposal is fair and balanced.