VDP-20 VitaDAO Liquidity Pools on Layer2s (Polygon, Gnosis Chain, etc.) – #11 by VitaDAO – Proposals Accepted – Governance Forum

Vincent

December 30, 2021 at 6:36 p.m
1

Summary
tl,dr: Users are demanding cheaper ways to participate in vita and governance. I propose that we experimentally investigate bridging a small set of DAO-owned $Vita with the most commonly used sidechains and layer 2s. Starting with Polygon and GnosisChain due to highest adoption, later possibly Arbitrum, Optimism, Zksync and others.

details
To ensure enough liquidity, I would suggest planning $250,000 worth of $Vita and $250,000 worth of ETH to begin with, to basically have a https://balancer.exchange/ pool on Polygon with a total liquidity of $300,000 and a https://sushi.com/ pool on the Gnosis chain with $200,000 liquidity.

To ensure that the price of $vita on Polygon and Gnosis Chain is similar compared to Ethereum, I would suggest additional Vita+ETH worth $50,000 each on Polygon and Gnosis Chain, driven by the VitaDAO multi-sig with a Bot that buys or sells to ensure prices are in sync.

implementation: Transfer of a total of $600,000 worth of Vita/ETH ($300,000 in Vita, $300,000 in ETH) to Polygon/GnosisChain

• Transferring 350,000 (50-50) worth of Vita/ETH to VitaDAO’s polygon multisig
• Transfer of 250,000 (50-50) worth of Vita/ETH to VitaDAO’s Gnosis Chain Multisig

Additionally, the Tokenomics working group would propose a $100,000 Vita as a reward for providing liquidity on Balancer/Polygon (~$60,000) and Sushi/GnosisChain (~$40,000) for the first year, which is quite low given the DAO’s revenues, secure much of those rewards by being a key liquidity provider.

• Agree
• Agree to the revisions (please comment)
• to have different opinions

1 like

I think this is an excellent discussion. If we start with a sidechain, I would suggest that we go with Polygon in the first place (as opposed to splitting with GnosisChain) as they currently seem to have more development plans and a larger community than GnosisChain. Also, UniSwap v3 has just been deployed on Polygon. I would suggest that we maximize liquidity there.

I also think exploring Layer 2 options at this early stage would be very valuable. I would be interested in including these layer 2 options more explicitly in this plan.

2 likes

Vincent

December 30, 2021 at 11:41 p.m
3

Hello Dani, welcome and thank you for the valuable input! It might certainly make sense to focus on Polygon for now, although I think GnosisChain is growing fairly quickly given the native integration with Gnosis Safe, Cowswap and popular DAOs and services like POAPs in particular, but it might be worth it, focusing on Polygon for now and exploring the Gnosis chain later…we will discuss at our next Tokenomics<>gov<>tech working group call

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Sounds great Vincent! Thank you for taking my thoughts into account and writing a really important proposal.

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I agree, but we should be very specific about which bridges we use and go for the most popular // recognized ones. I have seen in some cases that Bridge UX was problematic for many people as they were transferring tokens only to find the liquidity pools on the other side were using a different bridge for transfers.

I would say test the program on Polygon and then roll it out to any chain willing to provide mining subsidies for the pools // bridging. Example of a funding program for the Celo Bridge.

3 likes

keepx

January 2, 2022 at 12:20 p.m
6

I often use DEXTools.io with BNB pairs (after all, the 3rd largest market cap), Pancakeswap is the same but never works properly.

The fees for BNB pairs are quite cheap, but I get the impression that there are a lot of worthless projects. Bnb with Bsc might be worth a look (maybe Binance Dex too).

Maybe try a smaller cefi exchange?

Coming mainly from the XRP community, I know that many smaller projects are running on Bitrue (I’m just speaking here as an example).

They have a special program where projects provide part of their supply as a rewards program for the holders (doesn’t lead to liquidity anywhere in my opinion):

bitrue.com

Bitrue – Leading digital asset exchange

Bitrue is the safest and most advanced online platform to buy, sell, transfer and store digital currencies. It’s safe and easy to use. We offer the exchange of Bitcoin, Bitcoin Cash, Ethereum, USDT and Litecoin with fiat currencies …

Edit, also found the following:

Bitrue FAQ

Bitrue raises $50 million investment fund for upcoming blockchain projects

Dear Bitruer, Bitrue is raising a $50 million investment fund to nurture and nurture young projects in the blockchain industry. We firmly believe that we are a resi…

great idea!! Let us know if you can connect us with the Celo team to negotiate some rewards

1 like

thank you for sharing! I agree that there is a lot of activity on bsc… but it seems that the majority of our community are bigger fans of solutions like Polygon, Arbitrum, etc., but in the medium term they might be worth exploring

Confirmation Regarding Gas on Ethereum:
“56k modem, keep an open mind!”, “56k modem, keep an open mind!”, “56k modem, keep an open mind!”

“Can developers do anything?”

some thoughts/questions:

Why the sushi pool on Gnosis and not on Polygon, or say, why not just focus on a scaling solution initially, but with twice the liquidity?

theobtl

Jan 15, 2022 1:11 p.m
10

Hubbakook:

Why the sushi pool on Gnosis and not on Polygon, or say, why not just focus on a scaling solution initially, but with twice the liquidity?

This is the result of the discussion here and on Discord over the last few weeks. If I remember correctly, the main argument for two different L2s/sidechains is simply that there is currently no undisputed, obvious L2/sidechain where most of the activity is happening. Both Polygon and Gnosis Chain have their strengths, with Polygon appearing to be a bit more popular in the wider crypto community, but Gnosis Chain is used by many DAO tools (1Hive/Aragon/Gardens, Colony) and could now be another big one with Gnosis Booming is putting its resources into what was formerly known as the xDai network. In short, choosing two (not even one, not even ten) L2s/sidechains is just a way to diversify risk and hopefully bet on the right horse(s).

The specifics of whether the pools will be on Sushi, Balancer, or elsewhere will depend on a few things that I believe are subject to change as well, such as the rewards the DEX provides. If there is a new argument for changing the current proposal, we should definitely consider it and discuss it on Discord. However, this proposal has now passed Phase 2 and has just gone online for voting on Snapshot.

2 likes

VitaDAO

Jan 15, 2022 1:14 p.m
11

This proposal passed Phase 2 and is now ready to be voted on Snapshot.
Voting runs until January 22, 2022 11:11 UTC.

See also: How to Vote on Snapshot

2 likes

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