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:
We would love your feedback on these pools on the choices and allocation points.
We are requesting 50 HNY, budgeted in the following way:
- 10 HNY reimbursement for the initial capital provided out of pocket for the org.
- 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.
- 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.
Funding will go directly to the Tulip Colony. Details can be found here:
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!