Transfer funds to xDXdao for DXD Buyback, Swapr Farming, Omen Competition and Opolis reimbursement

Below is a proposal to send 100 ETH to ETHrelayer contract which facillitates 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 worker payments and also used in Swapr liquidity at the discretion of xDXdao base.

Background

DXdao has been using the xDXdao base on xDai for a variety of functions over the last several months. Four funding proposals have sent 400 ETH for use in covering operational costs and there has been 950 ETH for Swapr deposits (currently $2.3m in DXdao liquidity in Swapr on xDai). Currently, there is 149k xDai, 188k USDC, 89.2 WETH ($225k) and 7.8k STAKE ($70k).

Over the last 2 months, there have been 220k xDai paid out to workers and contractors, along with 3.88 WETH and 3.6k USDC, so operation expenditures have been about $115k a month. The previous funding proposals are enough to keep funding worker proposals but additional expenditures require another fund transfer namely:

  • the $100k grant to Opolis was paid out through xDXdao
  • 9.37 WETH has been spent on the xDXD buyback and 25 WETH on the way
  • Swapr beta farming campaigns on xDai will require funds WETH - probably around $50k
  • Omen market competition funding $10k in prizes now, maybe more in Omen Squad funding

Another fund transfer would replenish xDXdao for costs already incurred and fund it for future expenditures for farming and the buyback.

Details

This proposal sends 100 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 and bridge the following assets:

  • xDai - 35%
  • WETH - 65%

The proceeds are intended to replenish xDXdao base to cover the costs mentioned above.

Risks and considerations

Transfer of these funds relies on the dev multi-sig and the ETH relayer. By the time this proposal passes, the ETH relayer will have been tested using previous proposals. xDai also presents risks because security is dependent on its limited validator set. Additionally, cross-chain bridges are still new and not battle-tested.

There is currently $690k in xDai base with ~$170k allocated for Swapr liquidity. There is another $37.5k xDai to be paid out in currently boosted proposals. This would increase the mount in xDai but xDXdao base has been secure and governance has been successful at distributing funds for DXdao initiatives. In addition to the xDXdao treasury, there is $2.3m of DXdao assets in Swapr on xDai. This proposal would likely result with around 3% of DXdao assets on xDai, which is justified by the governance and product on xDai.

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