Update 17/07/20: Changed Status from “Discussion” to “Proposal”.
Hi there, some might still remember me from the early days of the dxDAO! Sorry for losing touch lately, really had to focus my attention on Gelato to get it off the ground!
This thread should be a first point of discussion around an idea that I was discussing with Martin Köppelmann the other day:
Automatically removing liquidity from an Omen.eth prediction market at a pre-defined date in the future.
Eric Conoar also mentioned the idea :
Link to thread here
Markets on Omen.eth are still fairly illiquid these days. One of the reasons I think is because providing liquidity has to be a well-managed endeavour, with liquidity providers having to constantly monitor dates, at which the markets will most likely mature, and then pulling liquidity out, otherwise being left with a lot of worthless tokens of the wrong side.
Possible Solution to make it easier for more people to provide liquidity:
Have an option to “pre-schedule” the removal of one’s liquidity from a certain market, at a specific date. So for example, if I would like to provide liquidity for a football match next Sunday, I would want to remove the liquidity before the start of the match to manage my risk and hopefully have made some return from other people that entered the market after myself.
How can this be built?
Using our recently launched Automation Protocol called Gelato Network. It would work like that:
- User deposits some ETH on Gelato that will be later used to prepay a network of executors to execute a transaction on the Users behalf
- User defines the condition when the liquidity withdrawal Tx should be executed, e.g. the date when the football match start, the action, i.e. “withdraw liquidity” and then submits this “Task” to Gelato. All of this can be done in a single Tx!
After that, gelato will constantly monitor the defined condition and will execute the liquidity withdrawal tx on the Users behalf, when the condition is fulfilled.
We already build a cool PoC together with Gnosis that does exactly that for trading on the Gnosis Protocol, basically allowing users to automate the withdrawal of funds, so they don’t have to send a separate Tx for that in the future.
What’s in for dxDAO?
More people providing liquidity on Omen.eth => more usage! Potentially in the future, there would also be a possibility to create a business model here by having the dxDAO deposit ETH on gelato and pay for the user’s future transaction costs, while retaining e.g. 0.5% of the withdrawn liquidity for the DAO as a compensation, potentially making some profit from these transactions.
Let me know what you think about the idea and whether I should create a proper Proposal with how much development effort that would require from our side.