Additional Deposit into Swapr on xDai

Swapr xDai currently has $3.4m in liquidity, $2.6m of which is from DXdao. This has been helpful in increasing volume over the last few weeks:

The pool with the most volume is unsurprisingly WETH-xDai, but it also has the largest volume % relative to its liquidity size.

Screen Shot 2021-05-17 at 8.57.34 AM

The four targeted pools are larger than their corresponding pools on Honeyswap and Baoswap

Screen Shot 2021-05-17 at 9.04.31 AM

Spreadsheet link

Despite being larger than Honeyswap in TVL, Swapr had less volume over last 7 days than Honeyswap for WETH-xDai, WETH-WBC, and WXDAI-USDC. Swapr’s eco-routing may have contributed.

I think the liquidity deposits have been a success and we should continue to

Some of this may be due to the fluctuating price of ETH, but I think Swapr benefits from a large WETH-xDai pool to enable large trades and also make it an attractive pool for arbitragers to plug into.

In terms of the next deposit, I think 400 ETH makes sense. It’s sizable but gives us flexibility for other deposits on mainnet or Arbitrum.

In terms of the asset breakdown, I was thinking:

  • WETH-xDai - 50%
  • WETH-WBTC - 30%
  • WETH-DPI - 20%

What do others think?

Should DXdao deposit additional funds in Swapr xDai?
  • Yes
  • No

0 voters

What should the total deposit size be?
  • 400 ETH
  • Higher
  • Lower

0 voters

Should WETH-xDai, WETH-WBTC and WETH-DPI be targeted?
  • No, just WETH-xDai and WETH-WBTC
  • No, just WETH-xDai
  • Yes, plus other pairs (Stake, Rai, etc)
  • Yes, just those three pairs.

0 voters

5 Likes

In addition to, or perhaps instead of DPI, could allocate a portion to the larger marketcap DeFi tokens that don’t yet have much trading or many holders on xDai. MKR, COMP, and UNI I think would be a good start.

Stake, HAUS, and AGVE I think are good examples of tokens which are xDai-centric but for which Swapr doesn’t yet have great liquidity. These could also be good options.

Agree that WETH/DAI is a great pair. Another area of expansion, rather than beefing up the WETH/DAI pair, could be to establish large WETH pairs for other stablecoins.

Overall, I would favor an expansion in the number of pairs over an increase in liquidity for pairs where Swapr is already leading on xDai.

3 Likes

I think rather than buying STAKE, HOUS and AGVE for doing LP, we should reach a deal with them to fund the pool 50%-50%.

Look at what xDAI-devs proposed to 1Hive a while ago:

2 Likes

It might be hard to acquire HAUS and AGVE. I don’t think they’re trading on mainnet, so we’d have to acquire them on xDai.

I like MKR, COMP and UNI ideas a lot and the WETH/stablecoin idea.

MKR might be interesting as it is the oldest DeFi token and may be popular with other xDai communities that have an interest in governance (Honey, DAOhaus, etc)

1 Like

Since 0 MKR have been bridged to xDAI so far (not for the lack of knowledge on the existence of xDAI among MakerDAO users, nor for the lack of knowledge about MakerDAO among xDAI users) I suspect MKR is not regarded as so interesting by xDai users.

My general feeling is that, while we should definitely invest resources to promote SWAPR by several means, we should avoid buying tokens (that we don’t consider as long-term strategic for the treasury) just for the purpose of LP.

My opinion: If we want to promote certain pairs (like UNI/xDAI or AGVE/wETH) we should either

  1. find the tokens for free somewhere else (e.g., asking 1Hive to provide the AGVE tokens, we provide the wETH, and we all share the LP tokens in a multisig).
  2. just limit ourself to do farming rewards (in SWPR ideally).
1 Like