Proposal: 35% HOPR/DAI (Uniswap v3), 15% xHOPR/xDAI (Honeyswap), 50% income-generated activities

Hello everyone!

I read all previous proposals and there are a lot of DEX and weights combinations out there.

But for me, adding HOPR token on a lot of chains has little to zero sense. It is not really clear how a new DEXes would attract additional users. Attracting new people to the project is done either by creating a cool product or by marketing activities. Listing on the other DEXes won’t attract new people on its own, and additional marketing activities are clearly out of this DAO discussion scope.

So, my proposal is a bit different. And actually, it does not comply with proposal requirements. But I’d rather share it, anyway.

My proposal:

  1. 35% - Uniswap v3 HOPR/DAI (fee tier: 0.30%, price range: unlimited);
  2. 15% - Honeyswap xHOPR/xDAI;
  3. 50% - income-generated activities (check below).


1. Uniswap.
Nothing special, we have to leave liquidity on Uniswap as it is the biggest and most reliable DEX out there. According to Sebastian’s message from the telegram, the v3 pool requires significantly less liquidity for the same slippage, so 35% will be more the enough.

2. Honeyswap.
It is pretty clear to me, that we have to add liquidity to the chain of HOPR nodes. It would make the process of setting new nodes a bit easier for newcomers. There is still a DAI → xDAI bridge obstacle, but nothing we can do with it right now.

As the total liquidity on Honeyswap is relatively small (12 mln as of 1st of May), we should not provide a huge amount of DAO funds there for security reasons.

My suggestion is 15% in xDAI/xHOPR pool.

Strictly speaking, Uniswap for whales and Honeyswap for small amounts in my proposal.

Listing on other DEXes does not have any benefit for HOPR, so we have 50% left and we should use them wisely.

3. Income-generated activities.

I will focus mainly on this part as it is the most important.

Currently, DAO holds around 12.8 mln DAI and 25.3 mln HOPR in the Uniswap pool (there is also some amount of trading fees, but they are immaterial and I omitted them to simplify the calculation). The total DAO fund holding is approximately $25.6 mln.

HOPR token market cap is around $65.1 mln = 130 mln HOPR * $0.5.

So, the DAO fund is approximately 39.3% of the HOPR market cap. ($25.6 mln / $65.1 mln). But with more and more HOPRs unlocked this number will gradually decrease to the point where it will represent only 5.1% ($25.3 mln / $500 mln*).
/* assuming the price remains the same. 1 bln tokens for $0.5 each.

This is a tricky situation, on the one hand, there will be more HOPR holders and more participants in DAO voting and the HOPR team do really encourage the DAO, on the other hand, the DAO fund will eventually decrease to a small fraction of the market cap and would not have significant monetary power.

That is why I think we should set aside the spare funds (50%) and use them in income-generating activities. Particularly:

3a. 6.4mln DAI supply on Compound.
The current net annual supply rate is 7.64%. As it is not fixed it is hard to predict an actual benefit, but probably between 200k and 500k annually. This is a significant amount that DAO may use for the benefit of the project.

3b. 12.65 mln HOPR stake on the DAO node once staking goes live.
It will require someone to run a node on behalf of the DAO, I guess we may ask the HOPR team to run it. Or we may divide these tokens between different nodes once there will be such an option. This will allow DAO to maintain the number of tokens it has and is healthy for future government.



Thanks for this proposal! I’ll check with the team, but I believe the third part (income-generated activities) is sadly out of scope. However, without wishing to pre-empt future experiments, I will say that we do have plans along these lines very soon :slight_smile:

(I should also note that this DAO vote doesn’t actually cover all the liquidity the DAO controls. Since placing it in the Uniswap pool, the DAO has earned almost 100% of the generated fees. What to do with this is likely to be the topic of future votes, with the goal being to do something more ambitious and open-ended than just putting it in an LP.)

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Like “3. Income-generated activities.” option.
Some of the DAO funds should definitely be profitable, not just providing liquidity or waiting for better times. Earned interest to spend on food for developers. Give everyone a cookie.

Sharing liquidity is like catching fish from your tank, but not putting a new one in there.
You will break the balance and this will lead to a decline in prices!

Thank you for the comments

Yes, it kind of out of the scope, but I think it is important to raise this question. Sooner or later we have to come up with a long-term strategy for DAO funds. If not this voting, maybe the next one. Who knows.

Looking forward to hearing the “future plans” part. That is really intriguing. :smile:

With Uniswap V3 you do need much lower liquidity for the same amount of slippage, so there is no point leaving all the funds there

One large investor will come and change the price in one direction or another!
She is needed! And I think uniswap does it very well!

Hi @Iuriiz, after some reflection, I’ve marked this as invalid (I regret not creating a different tag earlier, something like “out of scope”).

But we’ll revisit both of the ideas you mention in future DAO votes, in one way or another, because they’re extremely interesting. We’re planning to have one a month, so I think this will fit well with the timeline.

Cool, thanks for letting me know

I agree with your suggestion, great idea