My suggestion is that we look at the past 3 months volume stats on all DEX’s
Then, we check the top 5 and distribute based on volume percentage
Looking only at the top 5, we make sure we work with top tier DEX’s and also not spend effort on tiny exchanges with low volume
For instance , If UNI has had 70% of the volume during the last 3 months and 1 INCH 30% then we distribute 70% of liquidity to UNI and 30% to 1Inch
What do you propose as the data source for voting volume?
Also, my main problem with volume-based division is this is backward- instead of forward-thinking. If we base liquidity divisions on past volume, we ignore potential for growth or unique features of new/updated DEXs.
5 biggest also seems arbitrary and risks over-fragmenting liquidity. I recommend 4 at most.
Also, smaller DEXs are more likely to contribute to LP mining incentives alongside HOPR DAO
I understand your point but in this space is very hard to predict what will succeed in the future that’s why my suggestion is to stay with the top ones that will most likely be the winners like UNI,1inch,pancake,honey etc.
I like the idea of 4 to not over fragment liquidity
Regarding smaller DEXs, The benefits from LP incentives are a reality but will that overcome the uncertainty of a low volume DEX?
As for the data source I am open to suggestions but I always like to use: dappradar
I agree with this approach and would propose certain changes. Split across different Dexs should cover the main chains. We should consider Uniswap to be the main dex while allocating a high percentage for it. In the future if there is any potential new Dex/chain then we should also have the flexibility to add liquidity for it as well. We could use a portion of Uniswap’s liquidity for this purpose.
Distributing the liquidity across multiple dexs will add more security from a contingency point of view. In case if one dex is down then individuals are able to deal with HOPR in other dexs which would benefit HOPR on the long run.
I’m not a expert on dexs and not sure what dexs cover which chain but in general, I would like to see some thing similar as follows;
Uniswap - 40%
Pancake swap/1inch - 15%
Dex 3 - 15%
Dex 4 - 15%
Dex 5 - 15%
So if a new chain and dex is implemented, and after consensus from the HOPR DAO, we can allocate funds from uniswap. While every month/quarter we should analyse the profitability/performance of each dexs. We should also have a process to delist liquidity at any time based on HOPR’s risk appetite which also needs to be developed in the near future.
risk appetite - A process to analyze the market risk of any dex/exchange against the Risk that HOPR would like to take. If the risk is too high then we delist and if the risk is low then we stick with it or even add more liquidity.