Hello,
Overview:
The HAUS farms are coming up to the second month of LP rewards, which will run out imminently. The DAOhaus Alchemist have noticed that the current farming rewards are encouraging LPs to harvest rewards and immediately sell them. The total liquidity during the farming period has fallen around 25%, which also signals that the current rewards are failing to encourage long-term liquidity.
Proposal:
We have created this RFP to see if a DEX on xDAI is interested in subsidizing our LP rewards by providing rewards in the DEX’s native token (rather than HAUS).
This RFP has not elicited the response we hoped, yet. So our back up plan is to form a DAO where the members tribute LP tokens and UberHaus streams HAUS rewards over the course of a year in order to encourage diamond hands LP providers.
Here is the Liquidity DAO:
Because of the UberHaus voting and grace period, funding the rewards for Liquidity DAO will take 3 weeks, but we propose that membership will be open for those 3 weeks (after which membership is locked until the rewards are completely distributed (except for replacing members)).
Next Steps:
We think it makes sense to wait until the rewards run out before we close the RFP process and move to Liquidity DAO. But as soon as the current LP rewards run out, we would like to open membership.
5 Likes
I have actually been thinking about strategies for promoting both DAO circular economy AND persistent liquidity for unstoppable organizations. I think that there are better solutions for creating a long term liquidity back stop for not just the $haus token but the entire DAOhaus ecosystem.
2 Likes
Well you certainly have my attention! I would love to hear more about what you’re thinking.
2 Likes
Also, as it pertains to the RFP, I would like to highlight that honeyswap has a new farming strategy using comb token rewards and a time locked staking strategy. Very cool stuff.
The great thing about this new strategy for our current LPs is you all received a xCOMB drop. 10% upfront and the rest vesting over 6mos.
more info here -> https://honeyswap.medium.com/introducing-honeycomb-with-token-farming-by-1hive-e89e09032756
I also want to highlight that honeyswap and the 1hive dao are a strong community that does a lot of stuff on xDai. xDai being our current HQ It would be good to support the other communities that make xDai their home.
And furthermore, another great thing about honeyswap is they are expanding to polygon, we have many communities that are launching tokens on xdai and/or polygon so this flexibility is a bonus. Making honeyswap the go to for new community liquidity bootstraping events.
So i would like to start discussion with our community and honeyswap/1hive to make HAUS a special token with extra xcomb rewards and vesting. Imho it solves several of our issues with the current farms and helps unite 2 strong dao communities on xdai.
But open to hear all options, and different takes
5 Likes
For a token with a $7M market cap, $625k of liquidity seems just fine. I dont think another dao is the answer. What is the goal liquidity amount, lets pick a target instead of just spending all the haus for vaguely more liquidity.
LPs have pulled out of the farm because even with good rewards, they were losing money on token price falling a lot. Not bc rewards need to be pumped. the token would be stronger with more support going to encouraging the “circular dao economy” which is the goal of the token, not slightly more liquidity, IMO
4 Likes
In my mind it isn’t just about the current liquidity - it’s forward thinking about persistent liquidity that is important here. For example four hours after you posted liquidity is down 8% :
I do also think that $HAUS shouldn’t be emitted to reward liquidity providers if possible. Farming tokens like xComb are a much better option. The LP DAO idea doesn’t seem to have teeth in terms of being attractive to LPs. And then secondly it seems like a temporary stop gap measure - which could actually be filled in the short term with an xComb partner pool.
I’ll get with my team and formulate something proposal-ish.
3 Likes
I had this idea this morning as well
It’s a super super good idea.
1 Like
Another interesting strategy that could be used as a stop gap is the pool together prize pools. Could offer a large payout to multiple winners, instead of the smaller consistent yield to everyone. It is supported on xDai too.
Might work like this, we put 500 haus into a monthly prize pool where people use LP tokens for the lotto tickets, have a 10% early exit fee over a month or something. One or more random winners are selected at the end of the period.
This would probably appeal more to the gambler types. But aren’t we all gamblers a little bit?
This could be cool once agave is launched too, using a yield strategy on top to boost the award.
more info here https://docs.pooltogether.com/
2 Likes
