Liquidity should be spread across DEX for different purposes:
- marketing: getting new people get to know HOPR, buy it and ultimately run nodes
- low transaction fees for small transactions
- low slippage for big transactions (whales)
An important condition when choosing a Chain is to have a reliable existing bridge to xDAI where we run the nodes.
There is one for the three chains I’ve chosen.
Spreading across chains is:
- good because we can address different group of traders
- bad because it complexifies the already complex amount of different HOPR tokens by adding even more wrapped tokens ==> we should not have too many
- 33% on PancakeSwap in
HOPR/DAIHOPR/BNB Pair. We should ask for a HOPR/DAI CAKE Farm to incentivize adding liquidity
- 33% on HoneySwap with xHOPR/xDAI Pair.
- 34% on Uniswap v3 with
We need tokens on:
- BSC because that’s where new crypto traders are, highest liquidity after Uniswap. Good for marketing. Cheap fee, nice for small transactions.
- xDAI because that’s where we run our nodes. If we want to incentivize people to run node, we should make it easy for them to do so. Also cheap fee, nice for small transaction, same as PCS.
- ETH Mainnet, UniV3 has amazing slippage algorithm. Ideal for whales. It is the native Chain for the HOPR token. And that’s the DEX with the highest liquidity. It’s also where the node will ideally be run in the future I suppose, if everything goes well with the PoS update.
Of course, the crypto world moves fast, so maybe in a few months BSC will be overthrown by Polygon/Solana or whatnot.
But that’s not the point here, we can’t predict the future. We can always move the liquidity later.
More than 3 chains will be way too many wrapped tokens to handle.
20% of current LP on Uni v3 is enough for low slippage for whales, according to Sebastian (look at conversation in Telegram group).
So 34% on Uni is already more than enough.
We need to support the xDAI chain if we want to incentivize people to run node on it.
So providing significant amount of liquidity is important.
Marketing is equally important, and PCS is currently the place-to-go for newcomers in crypto who can move fast from crypto-newbies meme-fan to solid-foundational projects.
#### Why HOPR/DAI LP? HOPR runs on xDAI. It is a hint on that. People will wonder why and realize its home is in xDAI. They will need DAI to run node, so we need to incentivize them to have DAI at the same time as providing liquidity.
See “EDIT” comment: Proposal: 33% PancakeSwap, 33% HoneySwap, 34% UniV3 - #8 by nicobao