Fund aDXdao base and provision liquidity on Swapr on Arbitrum One

TLDR: This proposal transfers 700 ETH to a new ETH relayer contract to a new DXdao Multichain MS, to be converted into specified assets, bridged over to Arbitrum One and deposited in aDXdao.

Background

DXdao agreed to expand to Arbitrum One in June with a signal proposal that authorized deployments of Swapr and a DXdao base. After months of community discussion, REP holders passed a proposal this week that authorized the SWPR Token and Swapr guild. More recently, a proposal to anoint the DXdao base on Arbitrum One with specified addresses is set to pass.

The Arbitrum One expansion proposal committed $2.25m in DXdao capital to be deposited in aDXdao to be used for liquidity provisioning on Swapr and general operating expenses. DXdao has already provisioned close to $3m in Swapr on mainnet and xDai and has enjoyed a positive return as a liquidity provider, particularly on stablecoin pairs and the ETH/Dai pair.

Given the quickly shifting liquidity landscape that coincides with a new chain launch, this proposal empowers the dev multi-sig signers to acquire tokens that fall within the conditions laid out below.

Specifics

This proposal sends 700 ETH to an ETH Relayer Contract, 0x3e99bEd13071176fE06b317b33e2dcd1E1c9f2BE, which will relay the ETH to the DXdao Multi-chain Gnosis Safe multi-sig, hereby identified as 0x9467dcFD4519287e3878C018c02f5670465a9003 whose signatories were all on the previous dev multi-sig and have been verified as REP holders, to be converted into tokens that fit the conditions laid out below, bridged over to Arbitrum and deposited into aDXdao, which is identified as 0xe086305858d49f65a5d20adaccd31c523d32694f. It is up to aDXdao to provision the funds in Swapr or use for general operating expenses

THe 700 ETH is approximately $2.25m (using a ETH price of $3215). The funds should:

  • Include at least 250k Dai for operating expenses
  • At least $500k and up to $1.5m in Swapr liquidity provisioning for ETH-stablecoin pairs, which may include Dai, USDC, USDT, LUSD, or HUSD
  • At least $500k and up to $1.5m in Swapr liquidity provisioning for stablecoin-stablecoin (or stable asset), which may include, RAI, Dai, USDC, USDT, LUSD, or HUSD.
  • Up to $500k in Swapr liquidity provisioning for WETH-WBTC, WETH-DPI or WETH-LINK

Dev multi-sig signers can use their own discretion - within these guidelines - to allocate to the most optimal liquidity provisioning.

Risks & considerations

Arbitrum One is the first permissionless Layer 2. It has gone through almost a year of a public testnet as well as numerous audits. There are some guardrails for the initial launch but there remains risk for DXdao’s funds given how new the technology is. The benefit of being a first-mover on Arbitrum One justifies the risk.

This proposal relies on the Arbitrum One bridge and uses a new Gnosis Safe multi-sig that has the same address across mainnet, xDai and Arbitrum One. While Gnosis Safe has promised support for Arbitrum One, this is not live yet.

6 Likes

The above has been updated to change the recipient to a newly deployed ETH Relayer Contract,

which relays to a new DXdao multi-chain Gnosis Safe:
https://gnosis-safe.io/app/#/safes/0x9467dcFD4519287e3878C018c02f5670465a9003/settings/owners
whose signatories were all on the previous dev multi-sig:
0x08EEc580AD41e9994599BaD7d2a74A9874A2852c 0x462384d457aCE0E5702f8B2a6734F599E0E96809 0x734C242BA2d6A47644093F874FA4dad15005CF19 0x87C308B70AD9eacbef0Cb43514a104684eDB8A5D 0x91628ddc3A6ff9B48A2f34fC315D243eB07a9501 0xC4a69FBf4511A1377161834Cb7a3B8766953dB02 0xE1D2210A967eE144aAD31EcD08565E894B88FFaf

And been verified as addresses of REP holders of at least 1%.

1 Like

Very happy to see RAI included here. Would be a big fan of having a RAI/DAI pool seeded on Swapr on Arbitrum.

I would think maybe Lido’s stETH would be very popular too if were to include it. A lot of small holders who haven’t staked on mainnet due to gas costs might be looking for an avenue to get stETH on L2 instead. And as far as I’ve seen so far no other DEXs have included it yet, so could help attract new users to Swapr.

3 Likes

Hi! Thanks for coming by. I like your ideas regarding RAI, wstETH… Those have been subject of discussions, and some can be implemented sooner, while other would need certain tech to be built, in order to allow for them to happen, but in general it would indeed be really nice to do this for the users.

1 Like