This proposal represents an amended version of a previous draft proposal here [Draft Proposal] API3 data for Omen and DXdao future projects
After discussing the scope of the previous proposal at length, we would like to break it down into a number of smaller ones. Each proposal will have a clear deliverable, and will represent a pathway towards our DAOs working closer together. Token swaps will be used, small at first, between API3 (the native token of the API3 DAO) and DXD to ensure economic incentives are aligned. This represents the first proposal.
This proposal is for a MVP of the technology behind API3’s dAPIs, the Airnode. The aim will be to enable markets to be settled by a single Airnode connected crypto price API. Note that the finished dAPIs will use multiple APIs to settle, rather than having a single point of failure - this is a MVP, designed to allow both parties to make sure further integration work is mutually beneficial.
The ability for users to settle markets using this price data API will be made available on xDai Omen. API3 DAO will provide a bounty of $5k USDC to the markets attracting the highest volume within a defined period ($3k to the market with the highest volume, $1.5k to the second place, and $500 to the third placed market). Traditionally, testing integrations like this would be done on a testnet, but prediction markets need “skin in the game” to work. To recognise this, $20k USDC will be reserved as a compensation fund in the event of problems (this is different from the insurance fund for dAPIs as described in the API3 whitepaper).
To begin aligning financial incentives between the DAOs, a token swap will be made for $5k worth of API3 and DXD tokens to signal the long term intent. The API3 tokens in the swap will vest over three years as per the “Team & Partners” schedule, but are able to be staked to allow governance during this time. API3 is happy to agree to a similar vesting schedule for the DXD provided if necessary.
- Provide a single Airnode-enabled API to xDai Omen, to be used as an option to settle markets
- Provide prizes to the markets with the highest volume using the Airnode-enabled API as a settlement method over a set competition period
- Provide $20k for compensation in the event of problems
- Swap $5k API3 with $5k DXD, exact token numbers to be determined at the time of proposal passing.