Tulip Swarm Updates and Proposal #1

Tulip Swarm Updates and Proposal #1

Last month, Luke @lkngtn made a post outlining some milestones related Honeyswap and formed the Tulip Swarm to start working on our DeFi ecosystem. So far he’s funded the initial work out of pocket in order to get things moving. We worked to establish a process, and start development before presenting a formal proposal.


We have already made significant progress on establishing a operational process for the swarm including: contributor roles, an invite only discord server for high signal communications, weekly sprint cycles, and a sub stack newsletter for communicating updates. Additionally, we are using the early access version of Colony to pay contributors transparently and establish reputation.

We have been thinking about how best to extend the 1Hive community beyond xDai, and best serve the wider Ethereum community, and have come up with a model we think will work extremely well. The following are the the goals we look to achieve in the coming months:

Honeyswap on Polygon: we have forked and modified ‘Swapr’ in order to deploy an instance of Honeyswap that includes discounted swap fees on pairs containing Honey.

Multi-chain Honeyswap: We intend to deploy an instance of Honeyswap on multiple chains and rollups as they become production ready. Each instance of Honeyswap will be associated with its own token, We had originally called these tokens ‘HSF-XYZ’ tokens, where XYZ would be the token associated with the underlying network, but found this to be confusing and somewhat difficult from a branding perspective. We are still thinking about the best way to name and brand these instance specific tokens, but likely will go with either ‘xComb’ and ‘pComb’ for xDai and Polygon respectively, and each one will have a fixed supply.

’Comb’ Tokenomics: The ‘Comb’ tokens will be used to fuel the sustainable farming mechanism, but also be used in governance to enable each subsidiary instance to manage upgrades by adjusting/redirecting farming rewards, using Gnosis’ SafeSnap plugin for Snapshot and a custom Snapshot strategy which can be updated to leverage Celeste.

Sustainable Farming: We are preparing for audits on our fork of the Sushiswap MasterChef contracts. We’ve updated these contracts support the following additional features:

  • Reward multipliers for locking liquidity in the farm
  • Referral rewards to incentivize 3rd party integrators

Additionally we have created a new fee handler contract which routes fees to Honey and the instance specific token. The collected Honey is burned (on Polygon) or returned to the 1Hive common pool (on Xdai). This effectively returns it to the common pool (on xDai) without needing to transfer it across chains due to Honey’s dynamic issuance policy. Half of the instance specific tokens are burnt (creating a deflationary supply dynamic) and the other half are recycled into the farming mechanism (creating sustainable LP rewards).

We expect to complete audits and frontend work for the farms over the next few weeks. We will share the audit date as soon as we have it locked down.

Tulip Wallet: We have started to work on a L2-first DeFi aggregator, this will allow users to connect from any supported network, see all of their assets across supported L2 networks, Swap Tokens (accessing liquidity from both local AMMs as well as remote AMMs using connext as a bridge), provide liquidity on local honeyswap instances, and participate in farming opportunities with their LP tokens. Additionally, we intend to support borrowing and lending tokens using Agave (xDai) or Aave (polygon).

The test deployment will be ready shorty for everyone to try our new honeycomb interface.

The MVP release will contain the portfolio tab and farming tab only. Subsequent releases will gradually add the additional planned functionality including swaps (with liquidity aggregation), Connext Bridge support, Agave/Aave integration, and fiat on and off ramps. After the initial release, we intend to use 1Hive signaling proposals to help us prioritize development of new features for the Tulip wallet over time.

Liquidity Provider Airdrop: With the release of the sustainable Honey farming, we will airdrop tokens to bootstrap liquidity. The airdrop will be given to all liquidity providers as an average of the liquidity they provided on Honeyswap since the pools inception and that pools allocation points. The pool allocation points are still up for debate, but the following is a list of possible incentived pools:

Honeyswap Farming v2 - Google Sheets

We would love your feedback on these pools on the choices and allocation points.

Proposal #1

We are requesting 50 HNY, budgeted in the following way:

  1. 10 HNY reimbursement for the initial capital provided out of pocket for the org.
  2. 20 HNY budgeted for audits of the farming contracts, we have been discussing with auditors and expect to spend ~15k, 20 HNY gives us a bit of a buffer for price fluctuations.
  3. 20 HNY used as runway for funding future development, currently our burn rate is about 3k USD per week, though this can fluctuate up or down depending on resource availability. We expect 20 HNY to be enough runway for at least another month.

Proposal Link:

Honey Pot

Funding will go directly to the Tulip Colony. Details can be found here:


Future Updates:

We will update this thread each week (sprint) with a brief update on progress, until we need to create a new funding proposal - which we will make a new thread for. Stay tuned! Special thanks to the Tulip team and their hard work & dedication! Thanks to @solarmkd & @Rohekbenitez for the banner design!


Looks good.

Although I don’t fully understand the logic for why the pools were selected. Without getting into the details of each one some just don’t make any since and it would be nice to see some context.

A few that I would have thought to see:
Usdc-xdai - especially since usdc is one of the mostly heavily used stable coins on other networks it makes sense to me to have this route available for other networks as we expand connext bridges. (I saw a usdc-hny so maybe that’s the route we are going with)
The following are platforms we work closely with over the past year to date or just the place of business on xdai so not sure why following weren’t selected

  • bricks,
  • xgt,
  • uncx,
  • cold,
  • nif,
  • uncl

I guess it doesn’t mater how/what was selected just would be nice to understand the why. We could focus on:

  • existing projects/tokens that have worked with 1hive,
  • The top token pairs already on honeyswap
  • native tokens of sister networks (matic bnb, avax, etc), or
  • get a list of known projects coming to xdai any of these approaches work just clarity to the why.

Exactly this. But as far as I know, the google sheets showing the pools to be incentivized is not a final document and it is open to suggestions. I also would like to see pools with the tokens of projects we have closely worked with, and as a gesture if nothing, these pools can be included for the farms.

And regarding USDC, we have Perp protocol on xDai, and they are using USDC for leveraged trades on their platform. And for now, the slippage for USDC and especially stable pairs on xDai is a bit too high, even with Component Finance.


Great post … Congrats Tulip swarm on getting this update and proposal posted!!
Exciting points for me is the new sustainable farms and the Tulip wallet sounds like a brilliant idea. I think the market is ripe for a multi-chain aggregator and allowing all those additional features is going to bring a load of new users through to 1Hive.

As for the token pairs to be incentivised, I would definitely second more common stable pairs with xDAI or HNY to allow users from other chains to easily get liquidity across into the 1Hive systems.

I also think some interesting ideas that I have noted from other L2 chains that we can borrow from:

  1. Integrations with existing DeFI powerhouses like Badger, Harvest, Pickle etc to get them to support liquidity and incentivise users to move to xDAI and other L2 as we deploy.
  2. Protocols like cometh made a big splash by integrating existing DeFI protocols to participate/ support in their LP programs with NFT based games which seemed to be a hit with the users as the liquidity in the cometh pools was really taking off with this type of incentive and the protocols were bringing their existing loyal user base across.
  3. Also instead of airdropping tokens which generally leads to a dump of the token, could I suggest you consider a conversation I had with the AGAVE team linked here https://discord.com/channels/698287700834517064/813823983120023583/829819298385363006

Looking forwards to the updates and participating in the new farming season.


I would consider the spreadsheet more as a starting proposal than an actual decision that has been made. The weights and pairs can still be updated before launch, and can also be adjusted via governance afterwards, which is useful as the pools that make sense to incentivize may change as the ecosystem changes.

I think this makes sense, though I do think a component pool (or other curve forked pool) would be more efficient for a stable-stable pair pool.

By using honey as a preferred base pair, especially as we will have half-price swaps on honey on other networks, we can try and optimize liquidity pathways. Additionally, since we can provide much deeper liquidity (in terms of supply) for honey over connext bridges than we can for other tokens, having deep honey liquidity on the exchanges should also help rebalancing of other assets between networks.

I’m not familiar with some of those, but agree with the sentiment. We should make some room for tokens that are particularly relevant to xDai, or which the community has worked with in the past. I don’t think these need to have high allocations to be useful though, and there are some other tokens that were added with that sentiment in mind like PRTCL.

I think the main focus should be on trying to provide a better trading experience and subsidizing the pairs we think are mostly likely to attract volume as liquidity increases, I’m not sure exactly how we do that, and the strategy can change over time, but we just have to start somewhere.


I agree with @Monstrosity that xgt, cold, nif and MIVA should be considered because they work closely with HNY and XDAI with the emphasis on the $COLD token because the ColdTruthCulture community is constantly building and collaborating with 1hive.


Looks good really and like monstro said will be good to include also some of the projects which helped us with bridging liquidity to xdai and selecting to move that liquidity to honeyswap.
Also I can not wait to see - new updates from :tulip: swarm( most interested for farms/wallet :smiley: )


Great news, great idea. And MIVA must be podered, I agree.


Yeah, we need to support liquidity on the smaller low cap coins that have liquidity on Honeyswap, similarly like Sushi have their Onsen program, we may have a system close to that in future, where teams or daos could pledge some amount in the treasury to get their pairs incentivized with the farm token on the new Honey Farms…

The low cap coins and their supporters that are working with 1hive , brought liquidity or airdroped 1hive users should be incentivized for start , some of those are listed in the pairs bellow :

Appart from HNY-AGVE, the are the few pairs i consider it’s good to be incentivized with some ammount :

We could all check their presence and maybe even open subsection on our forums for each of those project so they can start communicating 1hive about their updates and we could accept new projects to pledge some ammount of HNY tokens and be a candidate for bootstraping liquidity with the new Honey Farms.

This will just open our DAO and get those projects and other new projects to post on our Forum and also they will get to learn more about 1hive in the same time, so imo it’s a win-win situation where we get more friendly projects on honeyswap and being featured on 1hive low cap incentivising program.


Definitely encourage people to fork the spreadsheet and create alternative proposals for initialization.


Giving more LPs will make this network better. We need to help with this.

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Hello, I personally consider that the options found in the form are good, even though I consider that MIVA could be on the list, since it is also a project that looks promising.


Well, I agree with what Monstruosidad said, I think that other tokens that interact with HNY and xDAI should be taken into account


Excuse me guys, the proposal is very good, what I do not see very well is to be promoting a possible Airdrop on the networks (Twitter) I hope I am wrong, but more than seeing it as an incentive, it seems more a measure of despair. I think they only promote the new farms, enough for a lot of people to join in !!

great post, the truth is I am excited to be able to integrate a little more each time! And as indicated by solarmkd, the integration of projects is, let’s say, of the utmost importance! @solarmkd


Well done! Add to this list all native xDai tokens… Like Rare token!

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I would consider adding MIVA on list. After all, lab10 collective is an xDAI validator. Give it a as token (pun intended) of appreciation for their continued commitment to the project.

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There are so many exciting things happening in the 1Hive community! I am particularly excited about this one. Very well written and thought out. I will support this :honeybee:

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LTI, Trips also seems like a decent up and coming projects. Hope this will prevent the liquidity fracture we have been noticing. As for the proposal, It has my support


One thing that should also be mentioned is that individual deposits are NFTs and I think the locking incentives should also be explained a little more in-depth:

Locking liquidity incentive

So in the farm every liquidity provider has 2 options:

  1. Deposit liquidity normally and earn rewards proportional to the amount of LP tokens deposited.
  2. Create a time-locked deposit, this means that no matter what, you cannot directly retrieve your liquidity until the lock is over. However in return for your longer, fixed commitment you will receive a higher return on your liquidity.

The idea behind this is that people who want to commit liquidity for longer and actually stay should be rewarded for their additional commitment. So if you plan to stake for longer periods of time you can create a locked deposit to boost your returns.

Users can choose any length of time up to a maximum of 2 years (parameters like these are subject to change). The liquidity cannot be unlocked before the lock expires, however since the deposit is an NFT it can be transferred and/or sold during that time.

One last thing to note, locked liquidity providers may be charged a small, one-time fee once their lock expires (0.01 - 0.05%). The reason for this fee is a bit technical but in summary the fee is given to whoever calls a maintenance method on your deposit once the lock has expired.