Liquidity Pairs for Farming - Motion to Activate 10 New Farming Pairs on the Honeycomb

🌿 Proposals
#1

Liquidity Pairs for Farming - Motion to Activate 10 New Farming Pairs on the Honeycomb

Proposal Information

Proposal description and rationale:
Disclaimer: This is my opinion and purely speculation.

Farming was initially a success. We quickly saw liquidity rise from 2M to 6M within 2 weeks. However, we did not give the liquidity providers an incentive for staying as there was no liquidity for trading major coins and therefore there was less incentive for them to stake for other trading pairs since farming was not active for them. With robust liquidity provision for only three trading pairs on Honeyswap, we lost an opportunity to not only attract but maintain liquidity in the currently active pools.

In my opinion, the biggest problem here is that HNY is not an asset tradable on other platforms. So while users who come to Honeyswap to trade their favorite coins and farm HNY may initially be interested in HNY, if there is no incentive for them to stay they will just pack up their staked funds and move them elsewhere where there is enough liquidity for trading whatever coins/tokens they want to trade.

Given the recent news for the top cryptocurrencies by market cap (ie, International Monetary Fund announcing interest in Central Bank Digital Currency development, PayPal integrating Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, etc.), and with the ongoing global economic and political volatility (ie, a rocky U.S. presidential election and a global pandemic), I imagine most people are interested in having their money either in the more established currencies (ie, Bitcoin and Ethereum) or in FIAT (ie, to watch from the sidelines).

I am proposing we pull 400 HNY from the common pool and allocate it to new farms. With the 400 HNY for new farms, I propose farming rewards to be 40 HNY for the 10 new farming pairs (400 HNY total). This means that the established farms will still provide the highest rewards, while also letting us incentivize new farming pairs without over-distributing HNY and draining the common pool. The pairs that I think would be most important are as follows (in order of importance):

WETH-WBTC
WBTC-XDAI
WBTC-LINK
LINK-XDAI
xMOON-XDAI
xBRICK-XDAI
HNY-WBTC
HNY-LINK
HNY-xMOON
HNY-xBRICK

As mentioned above, market sentiment is pointing towards the mass adoption of Bitcoin and Ethereum and other popular tokens like LINK. I feel strongly that we need to cater to the masses here to facilitate adoption at this crucial point in time in cryptocurrency. ETH fees will skyrocket, making trading on the Ethereum platform undesirable, and people will be looking for a place to trade these assets. It won’t matter if our farming APYs are not 500% - liquidity providers will come to Honeyswap because they will get rewarded for the fees and farms, and users will come because they will be able to trade their favorite assets for cheap.

As an aside, Reddit has thousands of people interested in trading and holding Moons and Bricks. Reddit is hosting a Bake-Off to try to scale Ethereum so that they can tokenize their subreddits and turn them into DAOs. Their plan is to create subreddit-specific tokens and distribute them as rewards for upvotes to users who can then use these upvoted token rewards in governance for the subreddit. The two experimental tokens, launched and active on the Rinkeby testnetwork, are reddit.com/r/cryptocurrency “Moons” and reddit.com/r/FortNiteBR “Bricks”. Some very smart people minted equivalent xMOON and xBRICK tokens on xDai and created bridges from the Rinkeby testnet to the xDai network. These tokens are now tradable, so redditors are earning value for posting and commenting. Ladies and gentlemen, the future of the tokenized internet.

HNY and xDai may have a major role in the future of this space, but we need to ride on the coattails of the giants at the moment in order to gain any attraction to and adoption of Honeyswap as the fastest, cheapest, and most secure decentralized exchange currently functioning.

Expected duration or delivery date (if applicable):
As soon as it passes.

Team Information (For Funding Proposals)

Honeycomb (hny.farm)

Funding Information (For Funding Proposals)

40 HNY per pair. 400 total HNY pulled from the common pool.

Ethereum address where funds shall be transferred:
They will be transferred to accounts that provide the rewards for farming.

More detailed description of how funds will be handled and used:
400 HNY will be distributed to 10 new farms. 40 HNY in rewards will be provided to each new farming pool. The final allocation of HNY rewards to the active farms will therefore be:

Active pairs:
HNY-XDAI: 300 HNY
HNY-STAKE: 200 HNY
HNY-ETH: 100 HNY

New pairs:
WETH-WBTC: 40 HNY - PASSED
WBTC-XDAI: 40 HNY
WBTC-LINK: 40 HNY
LINK-XDAI: 40 HNY
xMOON-XDAI: 40 HNY
xBRICK-XDAI: 40 HNY
HNY-WBTC: 40 HNY
HNY-LINK: 40 HNY - PASSED
HNY-xMOON: 40 HNY
HNY-xBRICK: 40 HNY

Summary

  • Global economic and political uncertainty and panic make the most attractive tokens/coins those that just received support from PayPal and the IMF (BTC, ETH)
  • We need more farms to be activated in order to attract larger liquidity providers from other exchanges to supply these pools
  • We can allocate 400 HNY to 10 new farming pairs as detailed above
  • Decreasing the amount rewarded to the pools maintains HNY scarcity and makes HNY less prone to major dumps like the one we are currently seeing now
  • Providing farming opportunities for holders of xBRICK and xMOON allows us to capitalize on the fact that Honeyswap is the only exchange on the planet that is currently offering trading pairs for these assets. Kraken and other major exchanges will soon provide trading options for Moons and Bricks once these tokens are launched on Mainnet Ethereum, we will lose this opportunity in the coming weeks-months if we don’t act now.
  • Increasing the number of farming pools allows investors and liquidity providers to have more flexibility in the coins they hold and trade on Honeyswap, instead of them feeling locked into holding only HNY
  • Incentivizing liquidity for major trading pairs that are popular on other exchanges will attract investors who want to trade their favorite tokens for free and with little financial repercussions (eg, to avoid the highly anticipated and unreasonably high ETH gas fees)

-------------------------------------------------------- UPDATE: 11/5/20 --------------------------------------------------------

Please see my new post for a detailed update.

Completed pairs:
HNY-XDAI: 300 HNY
HNY-STAKE: 200 HNY
HNY-ETH: 100 HNY

Active pairs:
WETH-WBTC: 40 HNY
HNY-LINK: 40 HNY

New pairs:
WBTC-XDAI: 10 HNY
WBTC-LINK: 5 HNY
xMOON-XDAI: 5 HNY
xBRICK-XDAI: 5 HNY
HNY-WBTC: 10 HNY
LINK-XDAI: 5 HNY
HNY-xMOON: 5 HNY
HNY-xBRICK: 5 HNY

8 Likes
#2

I agree we should start funding other pair in the farm now, but maybe we should focus to the pair that will attract more liquidity to the exchange. I suggest we go for the popular one like
WETH-XDAI
LINK-HNY
LINK-XDAI
WBTC-HNY
WBTC-XDAI
I think this 5 pair will sure enough to attract other user to xdai network especially my fellow LINK marines.

4 Likes
#3

I agreed with following pair :slightly_smiling_face:

WETH-WBTC: 40 HNY
WBTC-XDAI: 40 HNY
WBTC-LINK: 40 HNY
HNY-WBTC: 40 HNY
HNY-LINK: 40 HNY

2 Likes
#4

Still think farming was a success, and it is made even more clear by the recent selloff. Even after that relatively big drop, we still maintained 3.6M in liquidity (2M before farming).

I say we push this WBTC-WETH farm through and see what happens.

5 Likes
#5

Agree.

Please include WETH-XDAI

2 Likes
Further Discussion on HNY Liquidity Pair Proposals (Poll)
#6

I agree but maybe we should vote on each pair separately and pass one before proposing another?
If we run all proposals at the same time(like now) we risk none of the proposals will pass.

#7

I don’t think it was a bad idea to lump the proposals together! If I didn’t run all of the proposals at the same time, we wouldn’t have had $400,000 (and counting) in new liquidity enter Bitcoin on Honeyswap in less than 18 hours.

Although I am sure HNY-LINK will pass as soon as today, I personally feel we should settle on WETH-WBTC for now, let the pool grow, and keep analyzing our outcomes to figure out what is best, keeping in mind that, of course, that hopefully farming won’t be needed to maintain high liquidity forever. I am hoping that we won’t need active farms to attract liquidity at all in the future.

1 Like
#9

Don’t forget the massive increase in liquidity in the (unincentivized!) wBTC/wxDAI pool, presumably because some LPs thought they’d be able to capture fees from people trading into / out of the farmed pool.

This is a huge point in favor of taking careful steps rather than doing everything all at once.

#10

Why was the HNY-xMoon pair deleted from consideration?

#12

we should make sure to attract investors outside of hny but with the obligation of staking of hny in order to access the farms.
do you want to farm a couple not hny? ok stake 0.1 hny at least for the farming period (based on farming volume)

#13

377/5000

As for the reddit community, some representative of 1HIVE should convince them to bring their community to our layer 2 portals rather than to the ethereum mainnet, pushing on the low costs of fees and management almost identical to the mainnet with the possibility of cashout of the same currency. If I write too much tell me but I try to make myself useful with my ideas.