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