This will serve as the ideation thread on Boardroom for 5 days as required by our governance process.
Backstory: Why are we doing ideation here? Boardroom and the Ceramic team have both now confirmed that our ideation room has a critical bug that is preventing from any new threads being made. This governance process is only temporary until the bug is fixed, and has been suggested by Willy and Jon.
[Proposal] Incentivized Liquidity Mining Program for HoneySwap on xDai
- - As workstreams begin to launch, more and more DAO members and contributors will begin receiving compensation on xDai through Colony. This proposal will allow DAO contributors and leaders to offramp their earnings through L2 networks without the burden high gas fees on Ethereum and keep the initial liquidity of $200K provided ongoing.
Abstract - The DAO has been in discussions with 1hive, the operators of HoneySwap, for several weeks now. They have graciously donated their insights, support, and even time for a community call with our DAO video
- . The proposal has received overwhelming support by active DAO leaders, and members already on Colony have voiced the need for FOX liquidity on xDai. What would have cost $100-$500 to offramp FOX and into a fiat/stablecoin/your-crypto-of-choice, will be significantly reduced to as low as a couple cents to $0.10 depending on your route. xDai liquidity opens up many routes that were previously inaccessible, as well as a gateway to other L2 networks.
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 to another asset (or provide liquidity in existing programs). A double whammy in fees. At the time of this writing, it would cost around $375
- to get FOX onto mainnet and another $100 or so for a swap on Uni.
Specification - The following specs are being proposed after a week of open polls in our forum
- . Of course, now that it is in ideation, now is the time to voice any last minute concerns or suggestions.
The ShapeShift DAO will allocate one million FOX to fund an incentivized LM pool on HoneySwap for a target liquidity of $1-$2mil. The FOX/XDAI pair
- will be prioritized initially with a minimum of 70% of the allocated funds going to that pool.
- The program shall be designed similarly to that of Uniswap’s LM program, except scaled down significantly.
- The community has also voiced significant interest in a FOX/HNY incentivized pool. Depending on how well the FOX/XDAI program is doing, the DAO can decide to allocate up to 30% of the allocated FOX towards a HNY pool. If the numbers are not favorable, tokenomics do not make sense, or is strongly advised against by 1hive, then this 30% reserve will continue to fund the FOX/XDAI program until the funds are dry or until more funds are allocated in a future proposal (if needed).
- - The liquidity pool will grow and be sustainable for a longer period. Micro-payments are now possible for part-time workers / bounties as of today, and we would definitely want to keep that going. We build a strong and mutually beneficial relationship with 1hive.
- - Polygon-based incentivized pool will have to take a temporary seat for now, but rest assured, another proposal is already in the works.
YES VOTE: Commit the DAO to the HoneySwap incentivized LM pool as outlined above.
NO VOTE: Take no action.
Poll closed until revamped proposal is submitted.