The following is a tentative roadmap for the Tulip swarm, focused primarily on improving Honeyswap and the liquidity fracturing happening across Layer 2.
We stopped farming because we found that the way we had implemented farming (on a more ad-hoc basis via proposals) wasn’t as effective as we had hoped. We collected data and analyzed the situation, and determined they just weren’t working well enough to justify the immediate sell pressure on the Honey token.
However, we understand how important bootstrapping liquidity is, and how important the contributions of early and loyal LPs on the platform are and so we have been working on a plan to bring Sustainable and Safe Farming to Honeyswap.
Here’s the plan:
- Issue a new fixed supply token “HSF-xDai”. We can do a retroactive airdrop to honeyswap users and LPs, for a portion of the distribution to reward early adopters.
- Distribute HSF-xDai via farming to eligible honeyswap pools. Pool eligibility can be determined via a multisig initially and then moderated using Celeste. The contract would be written such that a percentage of the balance of HSF-xDai is distributed each epoch.
- Replace “Honey Maker” contract with a new contract, which would convert fees and split proceed into HNY and HSF-xdai. A function would allow setting the ratio, but the HSF-xdai portion must be greater than 50%
- Send HNY to the common pool as we do currently. Burn 50% of the HSF-xDai, and recycle the remainder of the HSF-xDai back into the farm.
The result is a system where early LPs get a large advantage by earning HSF-tokens when there are fewer LPs on the platform, These tokens are valueable because they represent a claim on future cashflows, while also ensuring that there is a continuous supply of HSF-xdai circulating through the farm protocol.
The farm is also designed to be safe. Unlike other farming contracts there is no way for our farm to do anything to the deposited LPs (no migration), and there are no deposits or withdrawal fees, and all parameters of the deployment are fixed without governance control.
The HSF-xDai token can be valued with a discounted future cashflow model, with 0 locks ups, and no ponzi-inspired deposit or withdrawal games. Just simple, no BS rewards for LPs.
1hive can use its discretion to modulate the share of fees given to LPs, but can never go below 50%. This enables 1hive to increase rewards as needed to compete with any potential incumbents, while providing strong assurances about the minimum expected value of the HSF-xDai token. This discretion is delegated to the Tulip swarm, allowing the use of snapshot signaling to engage with current LPs and HSF-xDai holders when adjusting this parameter.
Honeyswap Liquidity Network
TLDR now that we have bridged Honey over the Omnibridge to Ethereum and from Ethereum to Matic, we are going to deploy on Honeyswap on Matic.
This new instance will have a corresponding farming token
HSF-matic, as well as half price swaps on any Honey Pairs, helping to ensure there is a focal point for liquidity which will minimizing multi-hop trade fees, also because Honey is money.
Users will be able to come to honeyswap and connect from any supported network and interact with the local version of Honeyswap.
Overtime as new EVM compatible networks and rollups emerge we can extend the Honeyswap Liquidity network there, too.
Cross-dex and Cross-chain Liquidity Aggregation
We are working with connext to establish the first state channel based market maker.
This will allow us to create Honey Liquidity Channels that connect instances of Honeyswap deposed on different chains, allow more efficient cross-chain market making and reduce the spread between
This will ultimately enable users of Honeyswap to source liquidity from multiple sources on multiple different chains or L2 rollups.
Inspired by Zapper, Zerion, aggregation at the interface level is likely how most mainstream users will experience defi protocols.
We also recognize the terrible experience metamask has become on xDai, and want to offer a better experience interacting with 1Hive’s projects.
Honeycomb will be a dapp interface that can be accessed via frame (desktop) or wallet connect (mobile).
It will provide a portfolio view and the ability to make simple token sends and deposit/withdraw fiat using ramp (eu) and wyre (us).
It will allow users to compare returns and enter positions across Agave and Honeyswap (including staking LPs in farms)
Collab with Luna, to work on a next generation AMM system. Reviewing recent work including balancer v2, curve, futureswap