WX DAO proposals 1, 2, 3

Dear WX DAO,

I’m thrilled to propose a strategy to boost the performance of WX and WXG tokens by strategically using WX DAO liquidity to earn trading fees directly in WX and WXG tokens, instead of buying them back from the market.

Problem:

Current assets in WX DAO aren’t generating returns and there are no good investments for these assets.

Solutions:

  1. Puzzle Megapool:

    • Generates income from AMM trading fees.
    • Assets: 5x WXG and 1x WX, which creates 15 unique trading pairs, greater capital efficiency.
    • Increases liquidity and encourages additional trades within the Waves ecosystem.
  2. Smart Contract Implementation:

    • Use a smart contract to easily add more liquidity, maximum asset balance, only accessible by WX DAO.
    • Function to claim rewards, buyback WX with WXG, optionally burn some of these rewards, accessible by anybody.
    • On-chain tracking of rewards per asset, amount burned per asset, investment balance

1st Proposal: Setup Pool

Request $300 in pool assets as payment for setting up the Megapool and I will use the assets for supplying the initial liquidity.

2nd Proposal: Supply Liquidity

Supply all available liquidity 5x WXG with 16% pool weight and WX with 20% pool weight. Currently about $26k.

3rd Proposal, Optional Smart Contract Development:

Offer to develop a custom smart contract for $700 in pool assets. Smart contract as stated in solution 2, exact details to be discussed, smart contract is similar to BURN-XTN SC.

Risks and Mitigations:

  • Impermanent Loss Risk:
    • AMM always incur IL, but in my opinion for these assets it’s not an issue, since WXG is unbacked and devalued, WX is 99% devalued from IDO price.
  • 3rd party Smart Contract Risk:
    • Puzzleswap Megapool is already tested and operational for 2+ years.
  • Smart Contract Implementation Risk:
    • Thorough auditing and testing, potentially involving third-party experts.

Impact:

  • Boosted liquidity and trading opportunities for WX and WXG tokens.
  • Earn trading fees for WX DAO.

Next Steps:

Awaiting your feedback. Upon approval, we’ll kickstart the plan and consider smart contract development if agreed upon.
Timeline (excluding voting):

  • Pool setup time needed <1 day, implementation < 1 week.
  • Supply liquidity immediate
  • Smart contract time needed <1 week, implementation < 2 weeks.

Roadmap:

  • Add more liquidity to the pool, every week or month.
  • After megapool update consider adding more assets, such as WAVES, XTN, USDT-ERC20-PPT, ETH-PPT. A 10 asset megapool, creates 45 unique pairs, increasing the capital efficiency by 3x.

Best regards,
Ivan
Project owner: BURN-XTN and WHIRLPOOL