- Summary - As workstreams begin to launch, more and more DAO members and contributors will begin receiving compensation on xDAI through Colony. This is an urgent proposal discussion thats been asked to be pushed forward by various members of the community because of the unpredictable and rising gas fees on the Ethereum network.
- Abstract - The DAO has been in discussions with 1Hive/HoneySwap for a couple weeks already, but talks stalled a bit with discussions about a Polygon-based program. While Polygon is great, many members see an urgent need for xDAI liquidity (see below).
- Motivation - The logic is quite simple — as a DAO who’s treasury is relying on xDAI, there should be sufficient liquidity for DAO members to do as they wish with their compensation. At the moment the only existing route to mainnet is through the Omni bridge, and it costs considerable gas to 1) move assets onto mainnet; 2) swap tokens for offramp or to stake and provide liquidity on the existing UniSwap program. A double whammy in fees.
- Specification - The 1Hive team has been kind enough to give us time, insights, and a soft promise to prioritize our proposal.
(Following is an excerpt from a 1Hive/HoneySwap member @monstrosity):
We used a similar model as quickswap (where you add $250k in quick liquidity and in return you get rewards). We put it in place so we had something we could use as reference and so we are flexible.
We could do a double reward if your staking contract is able to or if it’s able to mint a stkLP token that could be farmed on HoneySwap for additional rewards.
We could share rewards meaning FOX-HNY or FOX-COMB we both could reward.
Even if we can’t come together on strategic collective approach we may likely add a fox-xdai or fox-weth pair to our xdai farm anyway. If we work something out I think we can make a bigger impact than doing them independently
The main thing to consider with our farms is you can choose to lock your LP for 0-120 days. Users get 2x the rewards for 120 days locked. Linear reward multiplier, 1x for 0 days.
Xdai farms are a bit of a task for us but we will make it a priority for you. We have a meeting on Tuesday, I can see what kind of timeline we could provide to you after the meeting.
In regards to farms: See above for our normal “application for rewards process”. We are open to ideas tho and are flexible.
As a pre-proposal discussion, we need to figure out as a DAO the following as requested by 1hive to accelerate the launch of the program:
A) What is the desired/anticipated liquidity and volume?
B) What is the amount of tokens we are willing to allocate for incentivization?
C) What token pairs would we like to see?
D) Is the DAO interested in potentially incentivizing a FOX-HNY or FOX-COMB pair?
I am neither a professional in DeFI nor LP/LM, but I will offer my 2 cents of limited knowledge: Yes, I am very aware that a Polygon program is much more attractive and is still something we should pursue, even if purely for Matic’s massive volume, liquidity, and adoption. However, because of the expected growth of Colony users in the coming weeks and months, prioritizing xDAI would be doing the hard working members of the DAO a huge favor.
The amount of liquidity needed would not be much, as we expect that a considerable amount of the volume would be coming from DAO members — although volume coming from speculators and traders would also be greatly welcomed.
The DAO’s treasury currently holds ~10.25million FOX. According to @willy 3.45M FOX, an additional 12.5M FOX, and a third tranche of unclaimed FOX from the airdrop will soon be claimable by the DAO [link]. Assuming that FOX ranges around $0.50-$0.70, around $8-$14M USD should be added to the treasury in the coming months. Please correct me if I am wrong.
Shared rewards could be a good way to diversify the DAO’s treasury, even if by little. What does the community think about a FOX - HNY or COMB farm? Or should we keep it simple and focus on the goal which is to provide liquidity for xDAI which would then open up a whole new range of offramping routes other than a straight mainnet bridge.
- Just the minimum, $250K.
- $500K - $1M
- $1M - $2M
- 250K - 500K FOX
- 500K - 1M FOX
- 1M - 2M FOX
- 2M+ FOX
- xDAI only