Many of you may not have the full history of xcomb and I apologize to 1hive og’s for not doing the full exciting story justice. Maybe someone can cover that offline. The TLDR: HoneySwap is afaik the first dex deployed on xdai by the 1hive community. It essential is a fork of uniswap, 0.25% of the fees going to the LP providers and 0.05% to the honeymaker which buys back $HNY. 1hive has attempted several farms adding up to over millions of USD$ value in rewards over the past several years (2020 to present). Some time in Q1 of 2021 the tulip swarm was formed to redesign and redeploy farms adding some UI and UX changes. During this process the xCOMB token was born and changes to the protocol fees, 0.25% of fees still go to the LP providers but now protocol fees are split, 0.025% fees go to honeymaker for buy back of $HNY and 0.025% to buyback and burn of xCOMB. Since the launch there has been a great deal of discussion around what changes should be made but very little progress is made on these ideas.
Primarily, Gnosis has asked that we discontinue the stake-xdai farm. This seems pretty reasonable given stake token is being discontinued.
As a close secondary issue, even as correct as Gnosis is about removing stake-xdai farm, the farm allocations are still a very closed decision process and we should strive for a more open governance approach. The 1hive community has always had very heated debate on what are the best allocations for the farms which has led to prolonged discussions, delayed execution, and unsatisfied parties with conflicting process for how to assign points.
For these reasons I would propose we take a small step to test out an approach similar to how curve finance does gauge weight voting. With no additional resources we can deploy snapshot using the xcomb token to do weighted voting.
There are at least two potential failure points:
- We still are operating under a multisig and relying on a dev to honor the snapshot. This problem exist today regardless of this change and we can address this as a next step so this shouldn’t be a hang up as there would be no change to this.
- Snapshot wouldn’t allow for a trustless permissionless approach to adding an LP to the list but snapshot afaik can have at least 100 choices so we can virtually cover all options
This is probably the most important and most difficult part of this process. Consider we don’t need to have this perfected to move forward with the snapshot approach.
We could setup up a quadratic weighted voting proposal allowing voters to spread voting power across any number of choices and calculated quadratically. The top 20 choices with the most weight holding more than 1% of the vote would determine the allocation points for the next round. The points would be distributed proportionally based on the tally of the vote. These parameters such as top 20 or 1% can be up for debate or we can just select them and if concerns are warranted a vote can take place to set a new precedence. The tokens that make the snapshot list could be any token paired with $HNY with >$5,000 liquidity over past 30 days. Or any token >$100,000 liquidity paired with xDai, wETH, or HNY. A mock snapshot proposal might look something like the following:
xComb staking is not live rn but at somepoint it could be an option and would be part of this list. xcomb reserve just means the voter wants to reduce emissions and those emissions would be sent to a reserve used for future rewards.
As for the pairs towards the bottom; xgt, tec, haus, etc. if there is not more than $100k liquidity they would not qualify to receive xcomb allocations for weth or xdai pairing, they would only qualify for rewards with the HNY pair. The only reason I added this limit was for simplicity of the snapshot but it does add a nice dynamic maybe one day complimenting gardens a bit more than we do today. As it stands if we use these numbers there would be approximately 70 choices to choose from.
- some might want more or different pair choices than just xdai, weth, hny
- the cut off quantities such as $100k or $5k, top 20 or 1%, or others not mentioned may not be desired.
- the HNY pairs for what was once called the ‘discovery pools’ may also feel restrictive I would like to open it up to all 3 pairs (xdai, weth, and hny) and let users decide but then we would need to draw a higher cutoff so there are not 300+ choices to vote on.
Please just keep in mind what we are doing here is giving more use case and control to the honeyswap user and xcomb token holders, we are not trying to implement perfection over night. Let’s see if we are able to find some common ground with an open approach that does not require a lot of work, thanks.