This is informational only, funding proposal will be lumped into a future proposal, more to come on that in a future post.
To honor the original proposal of pairing 50 HNY with 10,000 AGVE I am requesting ~$3,000 for the development of a drip contract. The scope will be to develop and execute a drip contract that converts all Agaves AGVE-WETH LP to AGVE-HNY LP. An example could be to slowly swap over 1 month time. Using a time weighted average price (TWAP) and a slow drip of roughly 0.25 HNY every 15 minutes to ensure no front running the swaps.
The Adding HNY-AGVE LP on Honeyswap proposal passed by the 1hive dao prior to the AGVE token launch. The proposal sent 50HNY to the agave aragon DAO, in return the 50HNY was to supply 50HNY and 10,000AGVE in liquidity to the Honeyswap HNY-AGVE token pair. Due to a mistake made in the token launch the pool created was WETH-AGVE not HNY-AGVE as promised. More can be read on the Reflection on the Agave Launch. The proposal is an attempt to make this right by honoring the original proposal and putting things back as originally intended.
Some additional details worth noting. Since the launch, HNY-AGVE has become the largest token pair on Honeyswap thus raising the question ‘should we just leave the LP AGVE-WETH?’. I believe this to be a seperate issue and can be voted on at a later date after the pool is moved back. The outcome of the actions taken should not justify not honoring our original commitment.
- build a contract that automates the withdrawl of agave-weth LP, swaps werh for honey, and adds agave-hny LP to the liquidity pool.
- At roughly $1.1M availble in the pool and at the time of writing this that is roughly 720 hny or 24hny per day.
- the automation should be as continuous as possible to reduce manipulation.
- target goal given the above estimates should be a buy back (dependent on price and amount removed from pool) of roughly 0.25hny every 15 min for 30 days or ~0.03% of intial LP removed every 15 min. (this amount may vary)
- the buyback would also use a twap function so if price was outside +- % it would delay buyback until next 15 min
- Agave holds the AGVE-WETH LP.
- The contract will remove as many times as reasonably possible such as a rate of 1/30th of the LP from pool every 24hrs
- Contract will swap weth for hny
- Contract will add hny-agve liquidity (using the agave or less from pool, this could potentially result in some amount of left-over honey but will not consume any additional agave beyond what was made available from the pool)
- Contract will repeat this ‘drip’ over 30 day period as many times in a day as reasonably possible so it may act as a true drip.
- Description of contract are open for changes given the capabilities of the contract, but should not deviate from this general operational intent.
Amount of AGVE requested:
- Funding for proposal will be lumped in a future colony proposal comming soon. This was written for understanding.
- Budget Lump sum payment to person(s) awarded the task after successful execution of contract with a do not exceed of $3,000.