HIP 001 - HumanDAO Proposal: HDAO/USDC Liquidity Pool On Ethereum

HDAO/USDC Liquidity Pool On Ethereum

Authors & Disclosure

Corey, Christopher Chase

The named authors work within the HDAO core team. No personal financial gain would be received from the passing of the proposal. We are submitting the proposal as we believe it is in the best interest of the DAO.

Summary

This proposal aims to add a liquidity pool on the Ethereum network. To align with the HDAO treasury it would be split into a 50/50 division of $USDC & $HDAO. This will enable us to capture the Ethereum based community to provide liquidity. This is an essential component to our staking release on two chains – Polygon and ETH mainnet.

To supply liquidity we would add $500K of USDC & $500K worth of $HDAO.

If the Sushi Onsen Application is successful, the liquidity pool will be created on SushiSwap due to the added rewards. However, if the application is denied, we would build the liquidity pool on uniswap. Keeping a flexible approach will allow us to have either an LP that is incentivized by sushi tokens, or an LP that will capture a larger market with greater rewards for the liquidity providers.

Abstract

HumanDAO is an Ethereum based token that has also been integrated onto the Polygon chain. A liquidity pool has been set up on the polygon chain, allowing investors to provide liquidity & token swap for minimal gas fees. To ensure we provide the same accessibility to Ethereum users, a 50/50 $USDC/$HDAO liquidity pool is being proposed.

Having a liquidity pool on Ethereum will fulfill 2 key roles.

  1. Provide the HumanDAO with exposure to the Ethereum network
  2. Create an area for investors to purchase $HDAO to enable dual-Chain staking

For this proposal we are taking on a flexible approach to whether we create a liquidity pool on Uniswap or Sushiswap.

Currently the HumanDAO team is in discussion with the Sushi team, in an attempt to join the Onsen programme. This would incentivise investors to provide liquidity by rewarding them with Sushi tokens. If the application is successful, we would create our LP on Sushi to benefit from this.

More information can be found here: What Is The Onsen? - Sushi

However, we plan to keep our options open and in the event the onsen application is denied, we would create the LP on Uniswap. Uniswap see’s a far greater trading volume & provides higher rewards to liquidity providers.

Motivation & Rationale

Why would you create an LP on Ethereum and how will it benefit investors?

The motivation aligns with the goals of this proposal. In order for us to create a market for HumanDAO Ethereum staking, we must build an associated liquidity pool for accessibility. Having an Ethereum based pool also builds upon community feedback that has requested this functionality, which we would very much like to align with.

Creating an LP on the Ethereum network will benefit a wide range of investors and give the $HDAO token exposure to the most widely used Layer 1. This market will be incentivised by the staking programme which will be rolled out shortly after.

Budget

$500K of $USDC
$500K of $HDAO (around 15 million tokens)

Poll

Do you approve the proposal?

  • Yes
  • No

0 voters

Copyright

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“Copyright and related rights waived via Creative Commons CC0 1

Governance Process

Click HERE to view the whole governance process

4 Likes

Awesome!

I support this 100%.

We’ll vote for this on Snapshot as well right?

4 Likes

Absolutely! if/when this passes the governance quorum, we will push it through to snapshot for the final on-chain decision. Updates will be posted to twitter if you want to follow along.

2 Likes

Thank you for your feedback!

2 Likes

Well done guys on getting things moving with governance. Pleased to see some good participation so far far too.

3 Likes