I’m seeking input on a proposal to link Honeyswap and Gitcoin. I’m using Discourse instead of the standard Tulip biz dev discord channel since we’d be sharing revenue from our protocol fee, so it’s not a typical partnership.
Gitcoin Background - https://gitcoin.co/
Gitcoin uses Quadratic Funding to fund public goods in the crypto space. Right now they’re dependent on donations, but recently they launched a DAO and are looking for ways to sustainably fund QF grants through its new treasury.
As the scaling wars heat up, we’re facing more and more competition from similar DEXes, and everyone (including us) is looking to expand onto new platforms. We’ve had a lot of success on xDai, and are still dominant even following Sushiswap’s move to xDai, but that success doesn’t necessarily translate to other platforms, as we’re learning on Polygon.
A key advantage for Honeyswap is the 1Hive community. Even within the DAO landscape, few others have our level of commitment to building a better future. 1Hive is a truly decentralized organization, with lots of engagement and growth, that’s building super valuable public goods!
For Honeyswap’s launch onto Arbitrum, we establish ourselves as the “Swap for Public Goods/DAOs/Web3” by allocating a portion of our protocol fee on Arbitrum to the Gitcoin treasury, earmarked for the QF Matching Fund. In exchange, Gitcoin provides liquidity to Honeyswap on Arbitrum.
Benefits for Honeyswap:
- A compelling reason for like-minded DAOs and traders to provide liquidity and trade on Honeyswap
- A rock solid brand identity that sets us apart from other swaps
- Access to Gitcoin’s large and growing community of cool crypto projects
Benefits for Gitcoin:
- A recurring, uncapped revenue stream for Quadratic Funding
- A meaningful role in the future development of Honeyswap as a key partner
- Seamless integration with Gardens, a tool that will help its funded projects become self-sufficient
Just to set a starting point to work from, I propose we allocate 0.15% of the Arbitrum Honeyswap exchange fee in return for $3 million in liquidity provided (~1% of their current treasury). This is the same protocol fee % we discounted on Honeyswap for Polygon, and at that fee, Gitcoin would match its most recent Quarterly Matching Pool total ($700k) at $5.19 million in average daily trading volume.
I propose we let Gitcoin choose the trading pairs it provides liquidity for, but offer to incentivize certain pairs that are strategic for us with aComb.
- Get informal consensus on a structure and numbers within the Tulip Swarm.
- If we can agree, I’d then bring the proposal to Scott Moore, Head of Community at Gitcoin, and see if we can get informal interest there. Scott and I are in touch on this already.
- If they have interest, I’d then create a 1Hive Signaling Proposal for the partnership.
- If that passes, I’d work with Scott to create the Proposal on a Stewards Workstream at Gitcoin, where it would then need to pass to get funding.