Launch farming campaign for Swapr Beta launch [Proposal Discussion]

Swapr team has been hard at work and preparing for the upcoming Swapr Beta release. One of the most exciting new features is the ability to launch new liquidity incentive programs directly from the UI. This has been audited and tested on Rinkeby and there is a test with real funds live on xDai now.

DXdao should consider allocating funds to sponsor liquidity incentive campaigns to coincide with the Swapr Beta launch. This would bring some additional liquidity and trade volume onto Swapr for the launch, while also demonstrating the capabilities of Swapr’s farming platform, which could help get other projects to launch campaigns on Swapr.

Here’s a proposed plan for a targeted campaign on both xDai and Mainnet that would last 3 weeks. Polls below to gauge the community’s interest in launching a Swapr farming campaign. Please vote!

Should DXdao launch a small targeted farming campaign to coincide with the launch of Swapr Beta
  • Yes
  • No

0 voters

Should the farming campaign be on xDai and Mainnet?
  • Just xDai
  • xDai & Mainnet
  • Just Mainnet

0 voters

How long should the campaign go on?
  • 2 weeks
  • 3 weeks
  • 4 weeks
  • 5 weeks or longer

0 voters

How much $$$ should DXdao allocate?
  • $10,000
  • $25,000
  • $60,000
  • $75,000
  • More than $75k

0 voters

DXdao should incentivize these pools (vote on all that apply)
    • DXD/WETH
    • WETH/xDai
    • WETH/WBTC
    • Stake/WETH

0 voters

What token should DXdao use for the rewards?
  • ETH
  • Dai
  • DXD
  • Other

0 voters

If there is consensus from the community, we can move forward with formal proposals. Eager to hear other thoughts or ideas below.

7 Likes

It would be interesting to consider some multi-rewards. I do think having DXD, even a small amount, makes sense to be distributed here alongside ETH and/or DAI.

Overall a great initiative, excited to see this move forward!

1 Like

Tank up and pedal to the metal!

What if we did intermittent incentives, e.g. every other day? It would be too short a period to pull funds, and we double the time. Would it be too much trouble to set up?

DXD liquidity is pretty weak on mainnet so I would be in favor of higher targets, a million dollars of total liquidity in the DXD/ETH pool on mainnet, and maybe half of that for xDai. Also agree with @KeenanL that DXD should be used alongside ETH. While I don’t want to see DXD become a “farm/food” coin I do think a couple months of DXD based incentives to coincide with Swapr Beta would be a strong move and provide a nice transition into the start of product token launches, which can then be used to continue incentivized liquidity on Swapr. Silver lining of DXD having relatively few exchange listings is that there is an opportunity to drive liquidity on chain, which is favorable from a perspective of decentralization.

On the flipside, I do not think it makes sense to incentivize pools where there is liquidity being provided from the DXdao treasury. The best way at this point to increase the liquidity of the non-DXD pools mentioned above is to allocate more liquidity from the treasury. While I think incentivizing DXD pools alone would be a good start here, I think the natural next step would be looking for partner communities to offer dual incentives with, potentially 1Hive, GnosisDAO, or others, to grow the liquidity of their tokens on Swapr.

6 Likes

I personally 100% agree with this (after a first security test, to avoid losing 1m :P).
We need LPs on DXD/ETH on mainnet. At the current price of DXD, the impermanent loss risk can be viewed as a way to do buyback at a vary favourable price.

1 Like

Generally I prefer to wait for SWPR token to go aggressive with liquidity mining so I’m with going small for now, but the liquidity targets proposed here are even low for precious DXD pre-SWPR standards. If the main goal for this is to be an in-production multi layer test then fine. But as a marketing push, an already very small “grand total” number is further reduced by diluting the grand total across perhaps too many pools & layers.

In reality, none of the pools are competitive in today’s APY landscape even at the very low liquidity targets. For perspective: elsewhere, an extremely LOW impermanent loss risk pool such as BDPI/ETH is still returning 55% with $70m locked, while high impermanent loss risk pools (comparable to DXD/WETH or STAKE-WETH) are returning 100-400% APY with millions locked.

Great initiative, but personally I’d double the Grand Total and/or sniper more.
Pools to stay (all on xDai) DXD/WETH , WETH-xDAI, STAKE-WETH
Pools to cut: everything else or keep mainnet DXD/WETH with smaller weight than the xDai one.

2 Likes

Some additional numbers for a 3 week campaign just focused on DXD/WETH and WETH/xDai

Screen Shot 2021-04-30 at 5.45.31 PM
Click for spreadsheet; polls below

There was also consensus that we should use all four farming campaign types (standard, timelock, staking cap, and multiple reward campaign). DXD/WETH should have two rewards and I think it makes sense for DXD to be used for the timelock campaign.

I prefer giving out ETH, because I think DXD is undervalued, but it’s nice to show the features and also helps the impermanent loss risk. No one gives out ETH in a farm yield, so it should be pretty attractive. There’s $880k liquidity total in the DXD/ETH + 2 Balancer pools.

Consensus seems to be building towards a SWPR token, hopefully coinciding with the Arbitrum launch. Those discussions probably need to be a bit more serious.

In terms of this campaign,

Is $80k the right number for a 3 week campaign, split evenly between DXD and ETH awards?
  • Too High
  • Too Low
  • Just Right

0 voters

Are the 3 targeted pools the right ones?
  • Yes, DXD/WETH & WETH/xDai + DXD/ETH on main net
  • No, those 3 plus ETH/Dai on main net
  • No, just DXD/WETH & DXD/ETH on mainnet
  • Only xDai
  • Wait, those 3 plus other pairs on xDai (Stake, DPI, WBTC)

0 voters

Should the campaign be 3 weeks long?
  • Yes, and plan for another 3 week campaign immediately after
  • No, 4 week campaign (maintain APYs) and then prepare for SWPR token
  • No, too long
  • No, too short

0 voters

5 Likes

I think it will be important to keep activity and momentum up going into a Swapr token launch. Since it is unknown when that would be, 3 weeks might come up short. Personally I would prefer to overshoot a bit rather than undershoot. It’s also possible to re-up this campaign after it expires but I think it would be preferable to commit to a longer campaign upfront as this will be more attractive to liquidity providers.

4 Likes

Would also rather overshoot than undershoot. Obviously, if we extend campaign duration we also have to increase grand total to meet liquidity targets. Uniswap v3 and real L2s are on the horizon. The opportunity for Swapr to shine on xDai is now.

4 Likes

We had a robust discussion on Swapr beta’s farming campaign on Friday’s Product Strategy chat. There was consensus on farming campaigns for DXD/WETH & DXD/ETH on xDai and main net, but the conclusion was we should wait to decide on the ‘showcase’ farm. Discussions with HNY and others this week will help determine that strategy.

But I think we should move forward with proposals for the DXD/WETH pools now. We had soft agreement on a campaign that would vary by format and length

Screen Shot 2021-05-07 at 3.01.32 PM

Spreadsheet

The Timelock campaigns should be attractive because they are also capped, so in a way the APY is ‘guaranteed’. Of course, locking up capital comes with risk, so it should be rewarded. The standard campaign should still have an attractive APY but allow farmers to deposit and withdraw freely.

Thoughts/comments/objections?

Next steps
We’ll need DXD in xDXdao base…but hoping we can get there in soon as the Buyback Signal proposals starts. There is enough WETH there (98 WETH) to launch a campaign (9-10 WETH needed).

And then for main net, we’ll have to wait until the Standard Multicall Scheme passes in 9 days but that should align with Swapr Beta release anyway.

1 Like

Started a related thread with an idea around the additional ‘showcase’ farm.

Thread here: Idea to Include WORK token in Swapr’s Upcoming Farming Campaign