Should GnosisDAO pass a Proposal to Mirror and Complete the Already Passed Rewards for Swapr xDai Proposal?

sky · December 16, 2021, 10:11pm

Should GnosisDAO pass a Proposal to Mirror and Complete the Already Passed Rewards for Swapr xDai Proposal?

Excited to be one of the first proposals to GnosisDAO following the merge.

The goal of this proposal is to mirror the details of the Proposal: Collaboration between DXdao/Swapr and xDai/Stake Communities from early November that already passed via Snapshot vote in the xDai/STAKE community, and to request the incentives in GNO instead of STAKE.

The Proposal from early November was discussed in the community and was passed via Snapshot vote with a voting period from 15-Nov-21 through 21-Nov-21 seen here:

https://snapshot.org/#/xdaistake.eth/proposal/0x96a6cbb5d26db0659bed7607b966f86fc418acfcebfcd11affe1d0a1c0657263

The proposal easily passed.

Not for the lack of trying, due to all the moving parts with the merger of STAKE and GNO and the swap contract, the allocation of STAKE rewards was delayed a couple times and no STAKE rewards were sent to be used as incentives on xDai Swapr.

This proposal will ask for the $200k of STAKE rewards to now be sent as GNO.

At the current price of GNO of $460, this would be 434.78 GNO of pre-agreed incentives.

Swapr on xDai has an ongoing liquidity mining program that comes in two week Epochs, sometimes combining Epochs. There have already been some interesting community discussions around where and how to leverage the GNO rewards on Swapr and also using Carrot, the smarter next generation of liquidity incentives.

Some of the initial pairs for rewards would be:

GNO/XDAI
GNO/WETH
DXD/WETH
SWPR/XDAI

Attracting capital from mainnet and other side chains to Swapr on Gnosis Chain is the goal of distributing these rewards. Some additional discussions have focused on tokens such as TORN, PUSH, FOX and others and attracting this mainnet capital into the Gnosis Chain ecosystem.

The “Benefits to the xDai community” in the prior proposal remain the same, but now it’s for the Gnosis Chain (formerly xDai) community.

This is also an open call to the GnosisDAO community to propose ideas for GNO incentives on xDai Swapr.

If you have any ideas, please share them here or in DXdao’s Swapr discord.

Proposal summary:

Request GnosisDAO community to send 437.78 GNO to DXdao to be used in Multi-reward farms on Swapr xDai over a 4 Epochs (8 weeks) period.

Details of DXdao Avatar on Gnosis/xDai Chain: 0xe716EC63C5673B3a4732D22909b38d779fa47c3F

Mojmir · December 17, 2021, 11:39am

Fully supporting funding of this proposal. DXDao team has been a huge supporters of the Gnosis (xDai) Chain for years.

They are supporting three different protocols which are live on the chain right now - Swapr, Omen and Carrot. They recently boosted the $SWPR allocation for their Swapr farms on the Gnosis Chain by 100% and increasing liquidity for the GNO token should be one of the main priorities. Right now the slippage for a $100K swap to GNO on GC is around 22% which is way too much.

ykplayer8 · December 17, 2021, 6:40pm

I am support this proposal. This proposal already passed on xDAI snapshot. Requested amount is reasonable. I believe DXdao will contribute a lot for GBC in future.

claberus · December 27, 2021, 1:48pm

Thanks for the proposal!
One of the key goals we need to achieve is to increase TVL,volume traded and expand the base of investors on GC and its ecosystem. I’m not sure these specific pairs would help us do it. At least, not only these pairs.

If we only reward ourselves, we’d just increase the holdings of current investors. We also need more popular pairs which we don’t necessarily own.

Also, the GnosisDAO doesn’t hold DXD-SWPR and SPWR-DXD don’t incentivise GNO pairs.
I’m trying to understand how this would be a good deal for the GnosisDAO and GNO holders.

sky · December 27, 2021, 2:36pm

Hi @claberus

This was a proposal that already passed signal governance as part of the xDai/STAKE ecosystem and was due to receive the rewards to benefit what is now Gnosis Chain. But then got stopped because of the token merger.

It is not ONLY supporting these pairs. This is also an open call to the GnosisDAO community to propose ideas for GNO incentives on xDai Swapr. Anyone can propose ideas for pairs that would strategically benefits GC. What ideas do you have?

You can see more details here:
Proposal: Collaboration between DXdao/Swapr and xDai/Stake Communities

What are the benefits to Gnosis Chain?

Benefits to the Gnosis Chain community:

Unique: Swapr brings a unique DEX experience to Gnosis Chain
Features: With it’s eco-routing which has been shared with its community, it becomes the ideal DEX to swap any tokens on GC, as it always gives the user the best price no matter which DEX it’s on.
Farming: Swapr’s farming interface allows a mostly “permissionless” farming ability for any project in the GC ecosystem, including multi-token rewards, timelocks and caps.
DXdao Capital: Regarding Swapr’s liquidity, DXdao is leading with its own capital by injecting capital into important pools on GC, so far with a focus to increase liquidity on pools that are lacking. This creates an important ecosystem growth effect.
Multi DEX benefits: Multiple DEX’s with good liquidity operating on GC leads to more trading, more users, more arbitrage, and more attention.
Healthy Ecosystem: Once GC has more DEX liquidity, it will attract more products and dapps that can only come to GC once there is sufficient liquidity for certain tokens. There are many protocols that are dependent on sufficient token liquidity.

xDai Chain had good momentum going with a many projects that have been building in the ecosystem, and there is not good reason to full-stop that momentum now because of the merger. The goal is try as best as possible to continue and build the momentum.

sky · December 28, 2021, 5:10am

Adding some additional color here to help convey the benefits of supporting rewards for attracting capital to Gnosis Chain via Swapr:

Swapr is one ingredient of a multi-dex ecosystem. It is also one part of the series of DeFi products owned by DXdao. Swapr can work in conjunction with these other products. One example would be leveraging Carrot.eth to enable programmable incentives allowing for smarter farming. These ideas are new but have the potential to pull in additional capital to Gnosis Chain.

There is a plan to leverage Carrot for distribution of some of these rewards. Currently, Carrot’s only deployment is on Gnosis Chain. However, projects even on mainnet have the ability to use Carrot on Gnosis Chain. Imagine a large mainnet-based project deciding to use Carrot’s programmable incentives (on Gnosis Chain) for its community goals potentially introducing thousands of new users to Gnosis Chain during the distribution and redemption process.

Swapr’s unique DIY farming with multi-rewards is great for experimenting with these new ideas. There is lots of room to attract liquidity from outside of Gnosis Chain over to Gnosis Chain. Some examples mentioned are TORN, PUSH, and FOX but as new token communities come about, this can be expanded.

The other big part of DXdao that lives on Gnosis Chain is its on-chain governance, one of the most active on-chain governance communities in the space. DXdao is building better governance tools and believes that leveraging Gnosis Chain is a smart path to take for aspects of this. As the DAO ecosystem continues to grow on Gnosis Chain, Swapr has been a place for these projects to achieve adequate token liquidity. We expect this to continue and increase, and having proper incentives can allow this DAO ecosystem to thrive.

Mojmir · December 28, 2021, 10:03am

Also, the GnosisDAO doesn’t hold DXD-SWPR and SPWR-DXD don’t incentivise GNO pairs.

DXDao is distributing SWPR rewards on Swapr on Gnosis Chain since the inception of the SWPR token. They recently boosted allocation for the Gnosis Chain deployment from 10% to 20% → Swapr Nov 11th Farming Rewards. Bi-weekly recap of upcoming SWPR token… | by DXdao | Swapr | Medium

DXDao was first to react once the STAKE to GNO token merger was official and they launched two farming campaigns for GNO token on GC. DXDao is one of the most active and important communities on the GC for a long time. They are launching their products (Carrot, DIY farming feature…) on GC first.

I agree that it would make sense to expand the list of proposed pairs incentivized with GNO rewards. In that case it make sense to also increase the total $ amount/duration of the campaign.

Nate · December 29, 2021, 9:57am

Given that GNO tokens will be used to incentivize pools on GnosisChain, that will inevitably pull liquidity from pools on Arbitrum, Eth mainnet, and other networks.

With the support and guidance from the former xDai community, the DAOsquare team conducted a successful Gnosis Auction and then bootstrapped the most liquid pool for their RICE token in Swapr on GnosisChain, which is incentivized with SWPR tokens.
DAOhaus is another community that found home in Swapr on GnosisChain.

There are a handful of community tokens on other networks that can be targeted and attracted over to GnosisChain, and Swapr is a great public good to facilitate this, but SWPR token is severely undervalued and currently it does not suffice, thus GNO is much needed.

SWPR governance token was distributed to a diverse set of communities in DeFi, in order to bootstrap Swapr governance with a wide decentralized base of active participants to look after the protocol through an ERC20 Guild structure. Token holders can use their voting power to :
Adjust and govern the protocol fee
Manage Swapr Guild treasury
Allocate liquidity mining rewards to targeted pools
Adjust the base pairs that trades are routed through
Improve Swapr protocol and Swapr dApp

Unlike the other AMM DEXes in the space Swapr’s frontend is truly decentralized with the use of IPFS & ENS, and being securely governed by the community of DXdao on-chain.