Ideas for a Honeyswap roadmap

eenti · December 9, 2021, 11:51pm

Given the recent conversations about Honeyswap, I wanted to put together a roadmap to properly set expectations for our users, investors and contributors.

DISCLAIMER: This cannot be considered the final/official roadmap, these are some ideas that I wanted to discuss with the Tulip developers while receiving feedback from the whole community on the plan that we should follow.

Q1

For the community

COMB pair reallocation: Reducing the number of pairs to increase APY, focusing on hard assets, essential tokens to set up favorable market conditions for the communities interested in building liquidity here. As well as ensuring we can do as much as possible to keep up with our competitors.

*date is actually 12/09/2021 10:13 PM UTC

Honeyswap LP Treasury: Using HNY from the protocol fee buyback (and some from the common pool if needed) to offer bonds in exchange of a curated set of LPs.
This should reduce the expenses of renting liquidity through liquidity mining programs while building a healthy treasury and ensuring there’s always liquidity on the pairs we care the most.

*maybe we can introduce a dedicated section within the honeyswap app to show the bond offerings? (whether if it’s using olympus pro or setting up our own fork)

Double token rewards: Introducing a highly requested functionality to our farms that will give us the possibility of collaborating with other communities to keep building liquidity on Honeyswap.
Gardens/Community Growth Packages: Using the tools developed we’ll be looking into starting a program where communities can count with us as the best partners to help them provide the right market conditions for the investors, contributors and users of their community.

*I’m interested in the idea of asking GNO incentives for programs like these

Limit Order/Stop Loss: Thanks to our friends at Autonomy, we’ll be able to offer more trading options to our users.
Light Mode: A slight accessibility improvement that can help our users adapt to whatever mode they need.
Minor fixes and improvements: We’re always on the look to protect our Honey from bugs with our spiky stings.

For the swarm

Swarm-facing analytics: We want to be able to measure the results of past efforts and know with certainty what steps to take next.
Swarm-controlled revenue: We’ll now be receiving the HNY bought back from the protocol fee directly into our multisig to be used to cover expenses and fund other initiatives.
Goal incentivization program: We’ll allocate a portion of the protocol revenue to be distributed as an extra to our contributors if we meet certain goals on a monthly? period.

While we deliver on these great updates, we’ll be doing some research for new improvements, some stuff that we may see on Q2 is:

Q2-Q3

DIY Farms: Expanding our efforts to provide the right tools to build liquidity, we want to be able to provide permissionless farms where everyone can specify the LP and provide the desired token for rewards.
Better user-facing analytics: At this point we want everyone to be able to make more informed decisions when providing liquidity or interacting with the protocol at all.
Expanding to other networks: Assuming that we get a positive outcome from the efforts at Q1 and early Q2 we will be looking into applying these to more networks, starting with Polygon, where we already have a deployment.
We could not just apply what we learnt on xDai, but we could also use some of the Honeyswap LP Treasury to bridge some funds and set up some base liquidity there as well.
Cross-chain functionalities: Having xPollinate shown success, I’m pretty sure we can do something with that, whether something as simple as hooking up xPollinate into our interface or as complex as making cross chain swaps.

Thank you for reading through and please leave your feedback on the comments. Do this seem doable? Should we prioritize other stuff?

Thanks @Efra for the design.

project_uwb · December 10, 2021, 9:29pm

Hey @eenti thanks for summarising the updates and putting your thoughts out on the upgrades to Honeyswap. I have more questions than comments but hope to spark some conversation around with these:

What was the initial purpose of Honeyswap and do we need to reconsider that focus based on all the crosschain deployments of the heavyweights like swapr, sushi and may be even Uniswap in the future.
What do we as a community want Honeyswap to be?
In my opinion I think its been established that DEFI 1.0 with its Yield Farming craze and high APYs is not the best way to attract liquidity or sustainable. I think proof in the pudding with our COMB farms. Should we start looking at what is being referred to as DEFI 2.0 and look at other healthy ways to increase and sustain liquidity? I dont have big brains but see a lot of chat about how OHM as a protocol is doing something completely different and building a treasury … but also helping add sustained liquidity.
Do we want to go cross-chain or should we concentrate on making ourselves the best at home?
Does the Gnosis - Stake merger present any other opportunities or risks to Honeyswap and should we gear up to face these?

Sorry like I said more questions than helpful comments. Just giving a out of box perspective from a user.

eenti · December 10, 2021, 10:03pm

I wasn’t here when Honeyswap was first deployed but AFAIK the initial purpose was to provide 1Hive and the communities around us more DeFi tools that were almost inexistent in xDai at that time. And so for the same reason it wasn’t really intended to compete with swapr, sushi, etc.

Well, that’s a tough question to answer, I’m not sure what do we all want it to be, but looking at our current situation and the direction we’re taking (1Hive acting as a friendly hub for a lot of the communities around us and the hard work put into Gardens) it only makes sense IMO that we leverage Honeyswap to serve as a DeFi tool for communities that still need DeFi but don’t want nor have the resources to do their own tooling.

Yeah, you’re right and that’s why I’m hopefully looking into creating the Honeyswap LP Treasury where we would own as much as the liquidity as possible instead of expending big bags on renting liquidity, thoguh I have to say it’s hard to get rid of tradicional liquidity mining altogether, it works (to some point) and all competitors will keep spending big on that.

Just a quick disclaimer, I’m trying to avoid trying to keep up with competition as much as possible and looking into relying on another methods like partnerships and so to bring TVL/Volume but to be considered an option we have to stay on some relevant spot in the network.

Yeah, that’s basically why I put that polygon expansion on the Q2 or Q3, getting things rolling and getting results from experiments on xDai shouldn’t take that long, once we have that together I’m confident we can start moving to other chains as the effort of maintenance doesn’t increase a lot. But yeah, polygon or any other network won’t be a priority for the time being.

I think it present us with more opportunities than risks, though there are always some risk involved.

First of all, we all are expecting a big influx of bridged value to the chain and hopefully we can capture a reasonable percentage of that TVL and Volume to Honeyswap and therefore putting HNY in a better spot. Then while Swapr and Sushi are really great competitors, we still hold the most diverse token distribution (and this will only increase with the introduction of Gardens) within the TVL and Volume of Honeyswap and it’s in the best interest of GNO token holders to treat communities, and therefore their tokens, the proper way, been thinking about the possibilities to get GNO incentives @ Honeyswap for these reasons.

As far as I’m concerned the incentives GNO will bring are going to be managed by the xDai Ecosystem DAO, so there’s virtually no way projects like Uniswap will get incentives at least for some time, though of course if they wanted they’d have no problem getting big TVL by themselves.

Another risk is the close relationship between dxDAO (the guys behind Swapr) and Gnosis, though I believe and hope Gnosis will stay neutral when making any kind of decision.

I hope this is a proper response to your questions, happy to expand on anything or to reply to more questions about it.

project_uwb · December 10, 2021, 10:11pm

Thanks eenti… for those prompt responses. I agree with you on not wanting to keep competing … but buidling in our own way. If we can crack organic LP growth in this new merged chain and like you said capture some of the new expected TVL into the chain… I think we will be positioned well. Well lets see if we get more conversation here on the topics you raised and I am really looking forward to read up on them!