Esteemed Bees,
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.
Honeyswap Background:
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!
Proposal:
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
The Numbers:
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.
Next Steps:
- 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.