Mix.eth as a revenue stream

Hello Everyone,

As dOrg is currently requesting feedback for the Mix.eth product (can be checked out here), I wanted to present some ways the Dxdao could capture long-term value from Mix.eth. The MVP will serve as a public good for the Ethereum ecosystem, which needs a more secure and decentralised frontend for Tornado.cash. With the addition of several DeFi protocols and Mixers we could transform Mix.eth into a valuable platform which is secure, transparent and community-owned by nature. If we successfully reach that point, we could make Mix.eth profitable without introducing ads or an ERC-20 token:

DXD token Membership

Dxdao´s DXD token could not only be seen as an investment opportunity but also as a membership token. Any product or service introduced and owned by the Dxdao could treat DXD holders as gold members who always get the best deals. For example, any DXD holder could withdraw tornado.cash notes without a fee. This could lead to a stronger connection between DXD holders and the Dxdao collective, as both would work to ensure their services and products work seamlessly.

Unlock Protocol

The Unlock protocol enables any Ethereum application/website to have a decentralized membership system. The Dxdao could deploy lock contracts which are memberships with a specific configuration. I am going to describe two custom configured memberships:

Early Adopters Memership

The Dxdao could reward early adopters by giving them a lifetime pro membership which could be introduced in the future. This could incentivize early adopters to give feedback and with that shape the development/iterations of Mix.eth in the beginning of its journey. This could be rewarded with an invitation to the core organisation by distributing Dxdao reputation which results into a true community owned development and management of Mix.eth .

Pro Membership

A PRO membership could be one way to introduce a revenue stream for Mix.eth. Additional features like Trading reports for decentralised exchanges, staking reports for any kind of staking service(compound, dydx) could be unlocked with it.

Dx[Compound Token] Wrapper with a fee cut

Mix.eth mission is to be the main gateway to any secure DeFi/Mixer services. While doing that, the Dxdao could introduce a token wrapper for any compound token which main function will be to take 10% of users lending rewards which could be done completely in the background. The user will see the APR percentage of a lending service with the fee cut included. With that, we will not introduce an ERC-20 token and any kind of UI/UX friction. Dharma.io was the first company who introduced such kind of a wrapper. Learn more about Dharma tokens here.

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Awesome work team. I just posted this on the proposal thread, but perhaps more fitting here actually…Re: the DXD token membership rights, I will propose to Loopring the below:

Firstly, it involves integrating Loopring’s zkRollup DEX protocol, specifically the actual DEX product, https://loopring.io, into Mix.eth, so Mix users can view their assets which are in the DEX contract, and also have the deposit/withdraw function, allowing users to enter/exit the zkRollup.

By doing so, perhaps Loopring can allow DXD holders to enjoy a preferable tier of fee discounts. Fee schedule is seen here, trading fees for takers currently between 0.06%-0.1%. We did something called an “Honor VIP” for the first 1,500 entrants into the exchange, so something similar could maybe be done for DXD holders.

Besides adding utility to DXD, it fits with the Mix theme of A) supporting DeFi services, and B) comfort with SNARK-based protocols (although in this case for scaling Eth, not privacy).

I am unsure if/what rights can be bestowed on DXD within Loopring.io (as you see current tiers are volume & LRC based), but I believe Mix.eth will add value, so am hoping rewarding the dxDAO is viable. Especially if Mix can become a decently used portal to actually enter/exit the rollup. For now, just a thought.

Viewing a user’s assets + supporting deposits/withdrawals should be trivial. For context, this is what the Loopring DEX contract is: https://etherscan.io/address/loopringio.eth. Currently $1m of assets in there. Can see more stats at https://duneanalytics.com/loopring

Thanks. Let’s discuss a bit more on this week’s call. Getting DXD holders some benefits via Mix.eth would be pretty cool in general.

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