Proposal for a Showcase Farming Program around HAUS on Swapr

With the upcoming launch of DXdao’s own Swapr farming campaigns, there has been discussions around including an additional “Showcase” pool in the campaign.

This Proposal is to include incentives for a HAUS/WETH pool on Swapr xDai for the following reasons:

  • HAUS token lives mainly on xDai with a wide distribution of holders (currently over 1,990 wallets)
  • There is currently no live rewards pool for HAUS
  • HAUS token has a strong community relevant to DXdao and its products
  • A HAUS/WETH pool with DXD, WETH & HAUS rewards brings DXD to the attention of the ideal crowd who would be interested in DXdao
  • Program kicks off a stronger relationship between DXdao and DAOHaus communities

Proposed Details:

HAUS/WETH pair on Swapr (on xDai)

Stage 1 - First 4 weeks:
Multi Rewards (2 tokens):
$12.5k of DXD
$12.5k of WETH
Period: 4 weeks

Stage 2 - Next 6 weeks include HAUS (UberHaus needs 3 weeks for an approval):
Multi Rewards (3 tokens):
$12.5k of DXD
$12.5k of WETH
$25k of HAUS
Period: 6 weeks

Side Note: DXdao is looking into building a trustless Farming Relayer that would allow both parties to jointly fund a multi-token rewards pool. Goal is to have this ready by the 4 week mark.

Alongside the Rewards, there is an interesting idea around an LP DAO (with a long term focus) being established. The LP DAO is a DAO that could take Swapr HAUS/WETH LP token for membership and would boost longer-term sticky pool liquidity. LP DAO will receive HAUS rewards streamed to it from UberHaus. LP DAO is also member in UberHaus. This is a really cool experiment with DAOs doing LP governance.

Currently, for reference, there is about $135k of HAUS Liquidity on Honeyswap (mainly HAUS/XDAI pair $260k total)

Target Total Liquidity for HAUS/WETH pool is $500k

Timing would be to get this proposal going quickly so match up with existing campaign. Also,
LP DAO is probably starting next Wednesday

Side Note: Currently, Swapr farming does not have the ability to “Top-up” rewards pools. This is why the program has to be done in two stages.

Currently, the HAUS/WETH pool on Swapr has a 1.00% Swap fee.

Interested to hear peoples thoughts.

5 Likes

I think this is great initiative that will help showcase Swapr farming and engage a like-minded community. Would be great to get this going quickly.

In my opinion, after taking a look at the yields on the sites listed below, a 50% APY would be a healthy target (a bit lower than suggested here). Maybe there are other yield farms though which are higher?

4 Likes

I have some thoughts around Liquidity mining / farming in general, a continuation a discussion we had the in the BizSqaud call.

Perhaps we can discuss this topic on the Next Monday Bizdev call.

This is not to be implemented or looked at in this swapr campaign, but perhaps in future farming / liquidity provision programs, airdrops, and other incentive mechanisms.

The Sushiswap vampire attack on Uniswap was an incredible innovation, but that was 8 months ago which, in crypto time is a decades. My point is that it’s outdated and irrelevant for serious projects as it incentivizes short term alignment, dumping of tokens, and all in all cause more harm than good to the project.

This Nansen research is an interesting observation on that matter.

Here’s what might be a more interesting statistic: A whopping 42% of yield farmers that enter a farm on the day it launches exit within 24 hours. Around 16% leave within 48 hours, and by the third day, 70% of these users would have withdrawn from the contract. This is certainly due to how reward emission rates (APR) usually drop block by block, and how rewards get diluted over time as more users enter the farm. Capital is indeed mercenary in DeFi, and users would rather put their capital to work elsewhere. Don’t fall behind!

I think we should take a more sophisticated look into long term alignment and farming campaigns.
A few examples we can look into

KPI options by UMA

Ribbon Finance:

⁃ launch TVL-capped product

  • airdrop non-transferable token to early participants
  • slowly raise TVL caps, ongoing liquidity mining via non-transferable token.
  • Program + withdrawal fees designed to penalize early exits & mercenaries

Instadapp

Using Uniswap v3 to incentivize specific price range for their tokens.

4 Likes

Hey @nylon, I wrote a research paper about this topic more broadly - “tokenized equity minting” - a few months ago that you might be interested in reading. TL;DR: I think it’s still a viable strategy, and has huge benefits for many crypto protocols using it, not just AMMs but across the entire crypto industry.

Here’s my paper: Tresorit Web Downloader

3 Likes

Indeed. Chatting with hedgedhog today we came to the conclusion that the Nansen data is probably skewed because of the many binance smart chain projects suffering from rug pulls and farmers being weary.
Legit projects with serious products like DXdao and Swapr have only to gain from this. It is avid in the $1m+ locked in the pairs already just few hours after the launch.

2 Likes

Proposal passed with a majority vote: Alchemy | DAOstack

1 Like

@nylon Thanks for this. I think DXdao already has consensus that better-aligned “Liquidity Mining 2.0” is smarter and healthier than basic rewards.

DXdao has been working towards these better ways for many months.
To list a few initiatives:

  • Rewards Pools with Time-locks and Caps (already live on Swapr.eth)
  • Conditional Farming (an idea DXdao has been discussing since before KPI tokens even existed; development coming along)
  • Conditional Drops
  • An open, easy platform that allows the creation of Conditional Tokens for any project, broken down to basic needs . . . . . . . . :carrot:
  • Key partner integrations that allow more fluid settlement of Conditions
  • Leveraging DXdao’s Omen prediction markets to discover how-to and incentivize actions :comet:
4 Likes

This is amazing Caden! I briefly read through and will give more meaning insights after I read again.

I think that combining with what @sky wrote, we can experiment with an implementation of these concepts in :carrot:

:rocket: :rocket: :rocket:

2 Likes