Deposit 250 ETH in Swapr on xDai [Proposal] #2

The proposal below would send 250 ETH from DXdao treasury to be deposited in Swapr on xDai by way of the dev multi-sig

Background

The latest release of Swapr includes xDai support. There is already $73k of DXdao liquidity deposited into Swapr on xDai and an additional $600k that is on the way to be deposited in the proposal queue on main net and xDai.

During March 19 Product Strategy chat, community consensus was to continue using DXdao liquidity to support Swapr on xDai and focus on premium pools and ensure deeper liquidity than other options on xDai.

Details

This proposal sends 250 ETH to the dev multi-sig address, previously identified as 0x5f239a6671bc6d2baef6d7cd892296e678810882 whose signatories have been verified as REP holders. The dev multi-sig will convert the ETH into the following tokens and then bridge over to xDai (on Omni bridge), and then deposit the tokens in xDXdao, where they will be deposited into Swapr by xDXdao via a proposal and the liquidity relayer.

The pair targets are:

  • WETH-WXDAI (50%)
  • WETH-WBTC (20%)
  • USDC-WXDAI (15%)
  • WETH-DPI (15%)

The percentages are suggestive, actual amounts may vary slightly. It will ultimately be up to xDXdao to deposit the funds in swapr.

Risks and considerations

Transfer of these funds relies on the dev multi-sig. xDai also presents risks because security is dependent on its limited validator set. Additionally, cross-chain bridges are still new and not battle-tested.

This proposal will put the funds in xDXdao around ~$1.5m, depending on amount of worker proposals completed. This is about 2.5% of DXdao’s total assets. The transfer and liquidity deposit is worthwhile because of the opportunity to support Swapr while the market is moving to sidechains and Layer 2.

There is also upside in that the assets deposited will gain fees from trading, but there is also a risk of impermanent loss on each of the pools.

1 Like

This proposal has been submitted and boosted and can be voted on for next 5 days: