To encourage HOPR trading, it would be helpful to have liquidity pools on other chains and exchanges. We’re particularly interested in having liquidity on decentralized exchanges on xDAI chain, as that is where the majority of our testing takes place, as well as our staking program and NFT promotion.
The HOPR Association has been directly approached by multiple DEXs, including SushiSwap and HoneySwap, to begin negotiations for such a promotion. Talks are ongoing, but the Association’s response has consistently been that the funds for such a promotion are under the control of the DAO, not the Association, so we can’t enter into an agreement without the DAO’s approval.
This proposal would use HOPR tokens to fund liquidity incentives on one or more decentralized exchanges. This contribution would be matched by external partners.
IMPORTANT: This is NOT a proposal to actually provide liquidity, only to give incentives.
This would be quite a excellent idea too implement, as Crypto is generally quite volatile with new projects and we should always have some kind of process in place to add HOPR to new promising dexs so that we can make sure to increase adoption rate.
the liquidity is pretty awful on HoneySwap. they (1Hive) have done a pretty bad job of marketing themselves as an L2. Polygon has all the marketshare. and even something like Optimism or Arbitrum would probably generate more interest.
Liquidity pools are considered more risky if I’m not mistaken, and require a % rate return to gain traction from my limited understanding. So whilst being a good idea how would the tokens be kept safe and providing liquidity, RUNE has had issues of being hacked recently and is only just getting back up an running, so this may expose the project to a higher risk of being hacked thereby affecting the token prices.
Liquidity incentives can work really well if they are used well. I think it would be better to wait for the next stages (just before mainnet) before putting liquidity incentives to dexes. Doing it at this stage is probably just supporting short term interest but it may die when the incentives are over. You see this in most dexes.
The issue is too controversial. On the one hand, a tighter work with DEX is really required. The current situation is somewhat sad. However, with the current speed of emergence of new “L2” solutions, it is completely unclear which of them should provide liquidity, and which should not. Regarding HoneySwap, I can say definitely yes.
It is a good idea. Ppl are moving away from centralized exchanges, and if there is no extra incentives, then there will be no liquidity. Ppl will be afraid of low liquid markets, no matter what they stand for.
I dont think we are ready for DEX trading yet. We dont have enough of a story to tell potential buyers. As soon as cover traffic starts, or we have a project that has built something on top of the HOPR protocol, that will stimulate people to acquire HOPR. In order to do this, we need a very complete network, hence my Helium reference in the previous Proposal.
I would second adding some liquidity to Honeyswap, but would be against adding any more liquidity on another Ethereum dex. The fees there are s horrendous only rich people could afford doing liquidity mining over there.
I have more of a “build it and they will come” type perspective. Of course visibility is extremely important but we really need a viable product to put in front of people for them to really drink the kool-aid. After the HOPR ecosystem has matured and been fully tested, this would be appropriate.
Also agreeing here.
Liquidity incentives are always an important building block in the first launch phase of a project, but not a longterm strategic aspect (CEXes etc)
However, I agree that a liquidity on a chain with non-braindead gas fees would lower the entrance barrier for some people. However, an overall organic and healthy growth of demand is not triggered by more options to trade, per se (a common misconception).
good Idea. Already in DAO 1 I wrote about Liquidity in Fantom, Polygon (Matic), Avalance networks. It would be great if the Liquidity was in these networks, because there are enough Degens that will consider HOPR as GEM