The proposal below would send 300 ETH from DXdao treasury to be deposited into Swapr mainnet by way of the Dev multi-sig and the liquidity relayer
Swapr development is proceeding with a full beta launch and is building up DXdao liquidity. Currently, there is $1.3m of DXdao liquidity on Swapr xDai (out of $1.9m total). Swapr mainnet, meanwhile, has $880k of liquidity from DXdao out of $1m total liquidity. A previous proposal sent 100 ETH that was deposited in the Dai-ETH pair on Swapr Mainnet in February and then another proposal sent 300 ETH last month that was deposited in the Dai-ETH pair. These are held in the relayer, which is now controlled by the dev multi-sig, but will be transferred to DXdao when the multi-call scheme is installed.
While liquidity on xDai is a stronger priority given it is a ‘blue ocean’ and the big strategic opportunity is Arbitrum, we should still support Swapr mainnet for large pairs.
This proposal sends 300 ETH to the dev multi-sig address, previously identified as 0x5f239a6671bc6d2baef6d7cd892296e678810882 whose signatories have been verified as REP holders, to be deposited into Swapr through the liquidity relayer contract.
The pair targets are:
The multi-sig will convert 75 ETH to Dai and 75 ETH to USDC and then deposit them plus the remaining 150 ETH into the liquidity relayer, and from there into Swapr. The relayer will use the TWAP from Uniswap ETH/Dai to determine the ratio to supply liquidity.
Risks and Considerations
This proposal relies on the dev multi-sig to convert the funds to Dai/USDC and also on the multi-sig to transfer ownership to DXdao when the multi-call scheme is installed. All of the signatories are REP holders with over 1% REP, so this risk should be limited.
The proposal relies on the relayer contract. This has been audited and there have been no problems with the relayer contract on mainnet or xDai.
This is a large transaction (300 ETH) to be handled by the dev multi-sig. The multi-sig has done dozens of similar transactions with no problems.
This is also the first time that DXdao would supply liquidity on USDC on Swapr Mainnet (there is some on xDai).
xDAI is a battle we can win with our own treasury reserves, mainnet is not. Mainnet will need aggressive SWPR token incentives and/or innovation. Diluting our efforts across too many products & layers is straining on both our treasury as well as our overall narrative.
Let’s focus on making Swapr the #1 on xDai and have our ducks in row to move at blazing speed once Arbitrum is ready to become #1 there.
I agree. Also, I don’t think many people will use Swapr if it is not included in 1inch or stuff like that because you can’t compete with the rates/liquidity of the main AMMs with “just” 300 ETH of liquidity.
I also think this makes sense if we predict that OMEN will become successful (first) on xDAI. And similarly for MESA.
We should establish DxDAO on xdai on all its products. And since all products interact with each other, it makes sense to target mainly one chain, to start with.
NOTE: I understand the centralisation risks associated with xDAI. If Arbitrium eventually becomes a better option, we should move there. But right now it looks like xDAI is the platform where DxDAO can shine in the short term.