So I sent a DM to Sherlock’s protocol designer earlier asking why he chose UMA over Kleros and got a response. Turns out his main concern with Kleros was… the market cap. UMA has ten times our market cap so is in a sense ten times as secure. And there’s not much I can say to argue that point honestly. I explained that buying up half the supply would require spending a lot more than half the market cap due to our low liquidity, and that an attacker would have to sell their PNK at an almost 100% loss since no one would want to buy PNK after such an attack. Still, on a 300 million dollar insurance case, and especially if jurors could be made to panic sell, this could still be very profitable at our current market cap. I see two ways to remedy this (which are not mutually exclusive):
- increase the market cap: this can be done through general marketing and hype and might even be sustainable if done well.
- have waiting periods when staking and unstaking: one thing that could help address the concerns from our twitter conversation is if tokens staked after or not long before a case is created were not eligible to vote in that case. There could be a 1 week wait for instance. So if I staked 100M PNK on January 1st and case 69420 starts on January 6th I would never be selected as juror in that case, even for an appeal starting in March. I must admit I haven’t thought about how this could work data structure wise and it would certainly increase gas usage. But might be realistic on a rollup.
EDIT: having a waiting period for unstaking could limit an attacker’s ability to induce panic selling, especially if that period were a function of some moving average of tokens unstaked.
He also basically asked me what sets Kleros apart from UMA. So I gave a quick rundown of appeals and specialized courts and how that would be beneficial in the context of smart contract insurance. But the fact that I had to explain this myself is perhaps a sign that we could improve our communication efforts. For instance, I see no mention of appeals or specialized courts on the kleros.io website. And sure there are links to the white paper, the yellow paper, and so on, but… I’m talking about marketing here. How about some more details on the “integrations” page for instance? It just has a “get in touch for integrations support” button basically, but it doesn’t sell me on why I would want to get in touch in the first place. EDIT: Okay, it does actually, to some extent, but if we’re going to have UMA as a competitor, I think we need to shill appeals and specialized courts. <ranting>What I’m trying to say is please just pay the price for a head of marketing (hint: probably more than 100k). I know I’m being a nuisance, but I really have Kleros’ best interests at heart.</ranting>
Also, I wanted to go ahead and see if I could create the proposal on snapshot but I noticed that creating a proposal on the Kleros snapshot requires being an approved author. Not great for decentralization. Can we think about changing that? And in the meantime, can someone with the rights do it for me?