Sponsor an Arbitrage &/ Trading Bot Competition
Proposal Information
Proposal description:
I’m proposing a campaign to promote Honeyswap through a large scale competition between arbitrage bots. The xDai network is optimal for such a competition due to its low fees, and I think this proposal is somewhat a great way to embrace something that is eventually going to happen if not already happening.
Proposal Rationale
More details about the competition & its rules will be explained more in the next section below, in here I will list the direct effects I would expect this proposal to have on the HNY ecosystem :
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More exposure : The main goal of this competition, considering the current HNY price, 10-20 HNY for a prize pool makes it one of the largest competitions (if not the first) of this kind. This also makes it easier to promote through typical crypto mediums.
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More money = more honey : Bots trading arbitrage opportunities within the network effectively will help achieve two things, first, completely balance out most pools, which might kill the opportunity of humans benefiting from quick price changes in the mainnet that usually take time to reflect on the xDai network, but overall will bring a healthy balance between different pairs. Second, fees from these multiple txes directly benefit LP providers. The more aggressive the bots get the better it is for honeyswap, especially with the farm opening soon.
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Stress-testing : The only bad thing I can expect is a massive load on the swap smart contract. As bots frontrun each other to make profits it might make other txes take longer. This could be minimized through contest rules, but ultimately if it should or shouldn’t even be a concern is up for discussion.
Proposal Pre-requisites
These are the things to be prepared for the contest launch :
- UI to track smart contract PnL : Single page, updated manually by which contract addresses to track. Displays in order top winner balance, number of txes (& maybe fees spent lol).
- Promotional material : Landing page for said UI above, & for branding & marketing. I suggest we call this the “Honeyswap Cross-Pollinate Event”
- Maybe more human resource management : Separate BrightID verification process for bot developers, different folk to manage twitter / telegram / discord / youtube promos, New discord section for the contest, etc…
Expected duration or delivery date (if applicable):
The contest duration should be around 20 days : 10 days for onboarding & developer applications, a weekend for finalization & registration of contract addresses, and a full week for the trading to happen. This is up for discussion as there needs to be sufficient time for devs to code their solutions. The prep above will also take some time, but isn’t strictly time-constrained.
Contest details
Participation Rules
- All contestants can only apply with a single contract.
- Which implies all contestants will need to pass BrightID verification.
- Contestants can submit & update their smart contract address until the contest starts.
- Contestants must deploy the contracts from the address they registered with.
Technical Rules
- All contestants must start with 1 HNY and 1 xDai locked in their contract.
- At the end of the contest, the winner is the contract with the most realized profit in HNY at the specified block.
- Only honeyswap txes are accounted for.
- Front-running is allowed, collaborating with other contracts is allowed. (Including non-participating contracts.)
- Adding / removing liquidity through the contract is not allowed, but players are allowed to do so themselves at their own discretion.
- Contract code rights belong to the developers, they are free to not share it as long as they comply with the rules above.
Technical Details :
Since it’s effectively a free-for-all, there is not much to discuss concerning trading details, the smart contracts can swing trade, or arbitrage between pairs, to increase their HNY balance. Users that try to deposit money to the contract will just have that amount subtracted from their final winnings, as if we penalize them it could be used for sabotaging other contracts. I suggest the prize distribution be as such :
- 1st place : 8HNY
- 2nd place : 4HNY
- 3rd place : 2HNY
- 2HNY distributed evenly on all top X participants
to a total of 16 HNY.
Team Information (For Funding Proposals)
I do not plan to undertake this alone. I am sure there are many many folk that would love to be part of this, so through budgeting and measuring of individual work, each section (marketing, development, onboarding, design,…) can have its own distribution of HNY funding. Everyone is free to comment & discuss this in the discord channel with how they would like to participate.
Skills and previous experience in related or similar work:
I am personally a developer. I have 3 year experience with Javascript/NodeJS, less with Java & C#. I am unfortunately not familiar at all with Solidity, nor am I planning to sink in multiple hours a day for development, so I would likely need the help of other folks which have more time to do this, evidently paid proportionally. I would be more keen to organize and oversee the entirety of the event, as I explained I really hope and expect many people to be onboard this proposal.
Funding Information (For Funding Proposals)
Amount of HNY requested: Including prize funds (16HNY), I would expect the total needed for this to be around 40 HNY.
More detailed description of how funds will be handled and used:
- 16 HNY completely distributed on contestants.
- Competition website UI & tracking of contract PnL : 6-8 HNY
- Marketing effort, paid articles and posts : 6-8 HNY
- Promotional material, copy-writing & original content : 4-6 HNY
- Moderation, support & community driven effort : 4-6 HNY
Total : 36 - 44 HNY
Thanks for reading, I’m sure this will have a spicy discussion. I will make sure to edit the post with any changes or updates that ensue from it.