Background:
Following the success of the shared liquidity proposals with Shapeshift and BrightID, we went to the drawing board on a more scalable shared liquidity solution that could benefit many projects at once.
This proposal is seeking [updated] $100k in HNY to be paired with Waterđź’§- a to-be-minted shared liquidity token. This is a joint effort between the token projects that have expressed interest in joining:
- 1Hive
- Shapeshift
- BrightID
- Giveth
- Panvala
- Opolis
- Agave
- Token Engineering Commons
We’re seeking community feedback before posting the funding proposal to the Honey Pot.
Token Description:
Waterđź’§($WATER) is a shared liquidity token between projects with aligned interests who are building long term value on Gnosis Chain.
By limiting $WATER to be used only in Liquidity Pools, it can be minted with enough supply to be a meaningful amount of liquidity for many projects, while taking advantage of price correlation to work like an index token for the projects it shares liquidity with.
Token Rationale:
Building significant liquidity on AMM-style decentralized exchanges requires a boat load of tokens. It’s easy for most projects to supply their own token for these pools, but extremely expensive to get other tokens to pair with.
Shared liquidity proposals have shown that there is a better option. 1Hive, Shapeshift, BrightID, and Giveth have all funded shared liquidity proposals giving them affordable and substantial long term liquidity. $WATER can scale the success of these proposals.
Token Launch Timeline:
- Gnosis Safe created with members from all participating token projects (Water Liquidity Board).
- Safe will require 7 out of XX signers for transactions described in this proposal.
- Token minting and governance approvals beyond this proposal will require 75% signer agreement.
- Participating DAOs send $100k of their token to the Gnosis Safe
- $WATER token is minted and liquidity pools created.
- Governance Setup (optional): at this point multisig members can choose to create a governance process for adding new DAOs to $WATER liquidity (with 75% approval).
Prenuptial Agreement:
- If at any time a participating token project passes a proposal deciding it no longer wants its WATER liquidity (#RageQuit) - its DAO<>WATER LP is removed and the DAO receives back 85% of the tokens it provided for liquidity, or 85% of its total tokens still in its DAO<>WATER LP - whichever is lower (15% penalty).
- If at any time the Water Liquidity Board decides it doesn’t want a participating project’s liquidity with WATER anymore (#Excommunicated) - that project receives 100% of its tokens still remaining in its DAO<>WATER LP back.
- Participating projects can repeat this proposal to add more liquidity (#ReUp) without needing to approve a new governance process, as long as no new tokens are joining.
Team Information
@gabi and @paul will represent 1Hive in the Water Liquidity Board.
Skills and previous experience in related or similar work:
@gabi is a 1Hive seed and Gardens Swarm contributor. @paul is a 1Hive contributor and signer on the Shapeshift and BrightID shared liquidity multisigs.
Funding Information
Amount of HNY requested:
$100k WXDAI equivalent.
Ethereum address where funds shall be transferred:
[TBD] - Gnosis Safe with members of the Water Liquidity Board.