Deposit DXdao liquidity into Swapr Mainnet [Proposal]

Below is a suggested proposal to use funds from DXdao treasury to be deposited into Swapr mainnet by way of the Dev multi-sig and the liquidity relayer

Background

DXdao launched Swapr contracts and front-end in December. In “Swapr Alpha” there has been limited trading and functionality, but Swapr has functioned smoothly. In previous proposals, DXdao committed to depositing funds from its treasury into Swapr. This is important to supporting DXdao products and also to diversifying the treasury.

A liquidity relayer was built to help deposit liquidity through a proposal process. This is needed because of the delay from proposal submission to when the liquidity is added. The relayer is needed to know at what price to add/withdraw liquidity. There were some small issues with the first liquidity relayer contract (you can read a post-mortem here). A new contract is being deployed and a new multi-call scheme will need to be installed, which takes 17 days to pass. This proposal is to fund the dev multi-sig so that DXdao may test and utilize the liquidity relayer while the new multi-scheme is going through the proposal process.

Details

This proposal sends 100 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 new liquidity relayer contract.

The multi-sig will convert half of the funds to Dai and then deposit them 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. The dev multi-sig will also test withdrawing liquidity from Swapr via the relayer. Once the new multi-call scheme is installed and DXdao can interact with the new liquidity relayer contract, the multi-sig will transfer ownership of the liquidity relayer to DXdao.

Risks and considerations

This proposal relies on the Dev multi-sig to execute, but it has already completed 4 treasury diversification proposals, converting $650k and counting. There is additional risk because this transaction will rely on the liquidity relayer contract. This has been audited and also tested on xDai.

This proposal also depends on the dev multi-sig to transfer ownerships of the liquidity relayer contract to DXdao.

This proposal will provide additional testing on a new contract while the multi-call scheme proposal is in the queue.

Given that this will transact all on mainnet, there may be additional costs from gas usage.

2 Likes

Updated it to include details from Liquidity Relayer Deposit Post-Mortem, and also clarification that the LP tokens sit in the liquidity relayer and ownership of them is given to DXdao by transferring ownership of the relayer to DXdao.

2 Likes

Proposal submitted and boosted. Voting will be live for 7 days:

1 Like