Gas Fee Refunds For Conversions onto xDai Chain

Proposal Title

Gas Fee Refunds for Conversions onto Xdai Chain.

Proposal Information

Proposal description: I believe one of the largest hinderances to conversion onto the xDai chain is the initial gas fees on the Ethereum mainnet. I propose that we refund the initial gas fees when onboarding onto the xdai chain (a 50-80% refund) in the form of Honey or the form of Agave token. This of course would only be applicable for a short term while the ecosystem is growing. After a set period of time, or after the liquidity pools are large enough (say $500 million total liquidity) we could end the gas refunds or partial gas refunds.
An accurate and detailed description of what you are proposing
Gas refunds will be sent to the xDai chain users wallet after conversion of an erc20 asset onto the xdai chain. This could be applicable to users that convert from the Binance chain as well.
Proposal Rationale
Detailed rationale for why this proposal exists and should matter to HNY holders, the 1Hive community, and/or DAO ecosystem The rationale behind this proposal is that many users are hesitant to convert their assets to the xdai chain. An incentive for them to convert onto the xDai chain (with only a partial refund so it is not abused) would give users an extra push to convert their current assets onto the xDai chain and into Honeyswap.

Expected duration or delivery date (if applicable):
How long do you think it will take to deliver on your proposal

Team Information (For Funding Proposals)

Names, usernames, and/or relevant social links for team members (Twitter, Github, 1Hive Forum, etc.):

Skills and previous experience in related or similar work:
What are some of your skills or related experience that might help inform HNY holders about your ability to execute on your proposal I own several pawnshops and have experience in business management. I am not well versed on programming.

Funding Information (For Funding Proposals)

Amount of HNY requested: Funding would need to be discussed among the team, we could mathematically figure out how much gas would be required to move 500 million in liquidity in average transaction amounts.

Ethereum address where funds shall be transferred:

More detailed description of how funds will be handled and used:

1 Like

I think it’s an interesting idea, and it’s difficult to game if the refund is lower than the cost of bringing the tokens to xDAI (only ethereum miners could benefit from that).

The only attack I can think of that would affect more the community is an actor that does a lot of transactions in order to get a lot of HNY and then dumps it, recovering part of the funds she spent in fees, and dropping the price of HNY (that would be equivalent to have a lot of HNY, trade it for ETH, and then burn the ETH, or do not burn it if you are the miner).

I think that meanwhile we make sure that the attack is costly enough (refunding only 70% of fees for example) we are safe, and I would like to see that proposal prosper.

Great idea IMO. This will definitely bring a lot volume and liquidity on Honeyswap

1 Like

I brought this problem up recently and think it would be great to come up with a solution. As we are offering the appeal of micro trades with near zero gas fees, it makes sense to reduce the expense of getting various mainnet tokens over to honeyswap. That way smaller liquidity providers can do it and meet demand, rather than big whales gambling on volume to liquidity being higher than uniswap (the bridge fees are similar to the approval and supply fees as it stands).

Bringing liquidity across needs to make sense for the liquidity providers. Hopefully soon enough a new trader will be able to come directly into the xdai chain and trade for all the tokens they want.

Would definitely help bring more users