Below is a proposal to move funds from the treasury to Swapr on xDai by way of the Dev multi-sig. Thoughts/comments appreciated
The xDai Authorization and Funding proposal passed this week, with $158k of xDai deposited into the DXdao base on xDai. Moving forward, worker payments will be done through the xDXdao base to save on gas. Simultaneously, the Swapr contracts have been deployed on xDai and the Swapr team is working on an update to the Swapr front-end that allows for seamless switching between mainnet and xDai.
The rising price of gas has crowded out many traders from using mainnet and increased usage on xDai - it’s TVL has grown 6x since the start of the year to $24m, according to DeFi Pulse. Honeswap, a Uniswap fork on xDai has averaged $1.5m in daily volume the last week.
This proposal sends 150 ETH to the dev multi-sig address, previously identified as
0x5f239a6671bc6d2baef6d7cd892296e678810882 whose signatories have been verified as REP holders, to be used as liquidity in Swapr xDai. The multi-sig will convert 75 ETH into Dai on mainnet and then bridge it over to xdai and deposit into the xDXdao base. The remaining 75 ETH will be converted to wrapped ETH and bridged to xDai on the Omni Bridge, and then deposited into xDXdao base. From there, a multi-call proposal to deposit liquidity into xDai Swapr using the liquidity relayer will need to be passed and executed by REP holders on xDXdao base.
Additional testing for the liquidity relayer needs to be completed as well as Swapr updates. This proposal should get the funds (WETH & xDai) into xDXdao base and then it will be up to REP holders on xDXdao to manage the deposit into Swapr xDai
Risks & Consideration
xDai is a sidechain, so security of the funds is dependent on its validator set. The funds stored in xDai have grown considerably over the last few months, suggesting others are comfortable with the security. This proposal also relies on the Dev multi-sig to execute, but it has already completed 4 treasury diversification proposals, converting $650k and has also successfully completed another $158k conversion, bridge and deposit into xDai base.
The previous xDai authorization put a limit on $500k on amount stored in xDXdao base. While this proposal will not exceed that, the addition of Swapr liquidity may necessitate a lifting of that number, or a separation between liquidity used in Swapr and general funds in xDXdao. Funds should also be coming out of xDXdao for payouts to workers, so another xDai deposit proposal will likely be needed in the next week or so.