Transfer 400 ETH to xDXdao for Swapr Deposits and xDXdao operations

This proposal would send 400 ETH to the Dev multi-sig by way of the ETHRelayer contract which facilitates the transfer to the Dev Multi-sig as outlined below, converted to Dai and WETH and bridged over to xDai and deposited into xDXdao base for Swapr liquidity, worker payments and other operations at the discretion of xDXdao base.

Background

xDXdao has been managing worker payments for DXdao and governing Swapr on xDai for almost 6 months.

Six previous proposals have funded the xDai base for a total of 650 ETH. This has been used for worker payments, the Opolis investment, purchasing xDXD and Swapr farming campaigns. The community is moving towards extending the buyback program, requiring additional WETH to complete the orders.

DXdao liquidity has also been deposited into Swapr on xDai. Three mainnet proposals initiated transfers of 900 ETH in total, which represents $1.9m in liquidity across the WETH-xDAI, USDC-xDAI, WETH-WBTC and WETH-DPI pairs. Overall, DXdao has earned a small positive return on liquidity provisioning, while also supporting Swapr during Beta launch. Additional liquidity enables larger trades to take place through Swapr.

Details

This proposal sends 400 ETH to the ETHrelayer contract, identified as, 0xb9C11a239CEb03626b439dDeD95AC51ffe000795, which will relay the ETH to the dev multi-sig address, previously identified as 0x5f239a6671bc6d2baef6d7cd892296e678810882 whose signatories have been verified as REP holders, which will convert it to WETH and Dai and bridged over to be deposited into xDXdao.

The 400 ETH is intended to be used as follows:

  • 125 ETH wrapped to WETH for Swapr LPing on WETH-xDai pair
  • 125 ETH converted to Dai for Swapr LPing on WETH-xDai pair
  • 75 ETH wrapped to WETH for xDXdao operations
  • 75 ETH converted to Dai for xDXdao operations

The percentages are suggestive, actual amounts may vary. It will ultimately be up to xDXdao to deposit the funds in Swapr.

Risks and Considerations

Transfer of these funds relies on the dev multi-sig. xDai also presents risks because security is dependent on its limited validator set. Additionally, cross-chain bridges contain risks.

If passed, this would put total DXdao assets in xDXdao at around ~$3m, not including the 1300 xDXD in the GP Relayer. This represents just over 5% of DXdao assets. The community’s experience over the last 6 months breeds confidence in xDXdao and xDai going forward.

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