Proposal: Strategic 2-Phase Lead Market Sampling for 3-DEX DAO Fund Release | Honeyswap, Pancakeswap, Uniswap

Proposition:
Use an initial release, 60% of funds, as a market sampling to determine where the remaining 40% should go.

Timing:
Phase 1 60% release will take place two weeks before mainnet rewards staking is enacted.
A six week intermission sampling period will follow to gauge where the funding is most needed.
Phase 2 40% release will take place one month following mainnet rewards staking implementation.

DEX market selection is based on trade volume research located at https://www.coingecko.com/en/dex and popular demand within the forum to allocate the initial volume as such:
20% Honeyswap paired to xDAI | for node users
20% Pancakeswap v3 paired to BSC | for market impact
20% Uniswap v2 paired to Eth | for bag holders
Polkaswap is not listed on CoinGecko’s top DEX list with >$1M trade volume and is therefor not on the table as an option; though in the future it should be used paired to DOT for hopr organization growth partnerships to assist development and team growth - scroll to bottom of link for hopr team positions needing to be filled

Determination of remaining 40%:
Honey, Cake and Uni will be reviewed for the largest demand of hopr tokens via trade volume weight, whereby hopr is the outflow indicator. Subsequently, outflow calculated will proportionally indicate how the remaining 40% will be divvied. In the event that the free market has enacted a three-way split, Uni will take a seniority 0.1 lead.
The reason for following hopr as the outflow indicator is to mitigate the impact of tokens being washed traded for false trade volume… in homage to holders, hodlers, & node runners vying to compete for a larger stake of the decentralized traffic. During the sampling period, any large purchases by known Centralized Exchange wallets will be excluded.

Target goal:
Allow the open market to decided where the tokens are most needed instead of arbitrarily locking them to an exchange where their benefit to the hopr project is least maximised.

This proposal was drafted in accordance with:
https://medium.com/hoprnet/hopr-dao-experiment-1-dex-liquidity-distribution-e4daf459fdbd

Thanks to all who read this.

1 Like

Thanks for this! I just need to go over this in some detail to make sure it’s all within scope for us, but my initial feeling is it should be (or at least isn’t completely impossible, pending a few more details).

I’ll get back to you soon.

Cool. For the calculation: we’d add the hopr volume sum from the 3 exchanges, to create the 100% of the 40 to be distributed, then divide each exchanges’ volume by the total sum to figure out the percentage. Example; 40% = (500K Pan + 1,000K Uni + 500K Hon) 2,000K. Weight would be 20% Uni, 10% Pan, 10% Hon.

Hi. So I’m happy that this type of contingent proposal is fine. The method for determining the future allocation seems simple and clear.

The only thing I’m not clear on is how Uniswap is being handled. If I’m understanding it right, your proposal is to initially keep 40% of the liquidity in the Uni v2 HOPR-DAI pair and move 20% to a HOPR-ETH pair (with the other 40% being moved out of Uniswap).

Then after staking launches, ALL of the remaining HOPR-DAI liquidity on Uni v2 will be removed, and some of it will be added to the HOPR-ETH pair based on performance.

I’m mostly trying to determine whether the omission of Uni v3 from one or both parts of the proposal is deliberate.

Good point, it has to go somewhere. I had omitted v3 because of the overhead. But if it is something that will entice users then it will be beneficial and will help de-mud the evaluation for the weighting.

How about:

  1. Factor basis fund movement as five parts of 20% to make figuring out the remaining 40% later down the line easier.
  2. Uniswap v2 hopr-dai 100% moves to
    → 60% Uni v3 hopr-eth
    → 20% Pan hopr-bsc
    → 20% Hon hopr-xdai
  3. 6 week eval period, observation and calculation on final week.
  4. Execute final funds movement.
    → = or -X% from 60% Uni v3 hopr-eth
    → +X% to Pan hopr-bsc
    → +X% to Hon hopr-xdai

Updated :hotsprings:

Proposition:
Use an initial release, migrating 100% from Uniswap v2 into: 60% Uniswap v3 Hopr-Eth [fee tier 0.3% across the entire trading price spectrum], 20% Pancakeswap Hopr-BSC, and 20% Honeyswap Hopr-xDai. After which a 6-week intermission will occur as a market sampling to determine where 40% of the initial 100%'s 60% in Uniswap v3 should go to get the most benefit from the 3 markets.

Timing:
Phase 1 100% release will take place two weeks before mainnet rewards staking is enacted.
A six week intermission sampling period will follow to gauge where the funding is most needed.
Phase 2 A portion of Uni v3’s funds will be redistributed as calculated, taking place one month following mainnet rewards staking implementation.

Plan:

  1. Factor basis fund movement as five parts of 20% to make figuring out the remaining 40% later down the line easier.
  2. Uniswap v2 hopr-dai 100% moves to
    → 60% Uni v3 hopr-eth
    → 20% Pan hopr-bsc
    → 20% Hon hopr-xdai
  3. 6 week eval period, observation and calculation on final week.
  4. Execute final funds movement.
    → = or -X% from 60% Uni v3 hopr-eth
    → +X% to Pan hopr-bsc
    → +X% to Hon hopr-xdai

Initial DEX market selection is based on trade volume research located at Top DEX exchanges by Trading Volume - CoinGecko and popular demand within the forum to allocate the initial volume as such:
20% Honeyswap paired to xDAI | for node users
20% Pancakeswap paired to BSC | for market impact
60% Uniswap v3 paired to Eth | for bag holders
Polkaswap is not listed on CoinGecko’s top DEX list with >$1M trade volume and is therefor not on the table as an option; though in the future it should be used paired to DOT for hopr organization growth partnerships to assist development and team growth - scroll to bottom of link for hopr team positions needing to be filled

Determination of remaining 40%:
Honey, Cake and Uni will be reviewed for the largest demand of hopr tokens via trade volume weight, whereby hopr is the outflow indicator. Subsequently, outflow calculated will proportionally indicate how the remaining 40% will be divvied. In the event that the free market has enacted a three-way split, Uni will take a seniority 0.1 lead.
The reason for following hopr as the outflow indicator is to mitigate the impact of tokens being washed traded for false trade volume… in homage to holders, hodlers, & node runners vying to compete for a larger stake of the decentralized traffic.

Target goal:
Allow the open market to decided where the tokens are most needed instead of arbitrarily locking them to an exchange where their benefit to the hopr project is least maximised.

This proposal was drafted in accordance with:

1 Like

-Updated the proposal

Thanks! Can you specify the Uni v3 fee tier and price range? I can’t find it in your proposal or the replies: Uni V3 Validity requirements

Updated, thank you

Thanks! This proposal is now valid and has been added to the proposal list here.

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Hi, did you mean bnb instead of bsc in the proposal? There is no such thing as hopr-bsc pair.
I doubt you meant Bitsonic Token (BSC)

1 Like

Thanks for spotting that @Iuriiz! Can you clarify @SpeedTickets.4Nodes? I’ve changed it to BNB for now, because we’re getting close to the deadline and that seems the likeliest resolution for the error. But I’ll need you to confirm one way or the other for this proposal to stay valid.

Yes, I meant Binance’s coin, BNB.