It’s my pleasure to extend an invitation from the upcoming Water DAO to all foxes to be a launch partner for the new Water protocol 1f4a6
The concept for Water comes from the 1Hive community, and was inspired in part by the success of the token swap and joint LPing 1Hive and ShapeShift DAO executed with $FOX/$HNY in 2021. After this swap, 1Hive received a lot of interest from other projects to execute a tokenswap and joint LP; more demand than the HNY supply could meet. The idea for Water emerged from this demand: a token specifically designed to be paired with DAO’s governance tokens and LP’d on Honeyswap. Projects that are accepted by the Water DAO (initially a multisig composed of 2 members of each launch partner) provide $100k of their project’s token (to get started), $100k of Water is minted, and $200k is LP’d on Honeyswap by Water DAO. If a project ever wants to rage quit, Water DAO will send them 85% of however many of their tokens are currently in the LP (15% penalty). Assuming things go well, these tokens will remain in honeyswap providing much needed liquidity for FOX at no ongoing expense to the DAO, and after launch we can consider increasing the amount of liquidity in the pool.
Water will only be minted in order to provide liquidity for DAOs, subject to the approval of the Water DAO. The only way to acquire Water will be to buy it. Water will not be airdropped nor rewarded to community members. Why would somebody want to buy Water? Water will act as an index token for DAOs; so if you like DAOs, you’ll love water. Regardless, even if there is zero demand for Water, it will still serve its primary purpose of enabling approved DAOs to increase their liquidity on DEXs without the need for expensive farming programs. If the token price for majority of the DAOs participating increases, Water’s price will increase and will bring FOX with it. And ofc, vice versa.
To learn all about water, check out this excellent proposal and discussion from 1Hive’s Paul: Water:droplet: Shared Liquidity Proposal - Proposals - 1Hive
While Paul and the 1Hive community have been spearheading this and will handle the development, I’ve been involved since the early stages in helping to brainstorm Water’s design. ShapeShift has been invited to participate as a launch partner in the Water protocol, and I plan on proposing to the community that we accept their invitation and allocate $100k FOX for the initial launch.
This is the official incubation post for this forthcoming proposal. Looking forward to hearing the community’s questions and thoughts. I’ll plan on advancing this to the ideation stage on Monday, April 11th 1f680 1f4a6
Should ShapeShift DAO be a launch partner for Water and allocate $100k of FOX to be paired with Water and LP’d on Honeyswap?