I actually don’t know the current situation with Uniswap liquidity. What are the statistics ? What was the pros and cons of Uniswap liquidity ? Why the team needs to discuss the DAO Uniswap liquidity control ?
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Hi. Thanks for the question. I’ll try and answer as best I can without overstepping my role as moderator, which I try to keep neutral. I’d invite the teams from the liquidity management projects to make the general case for why this is a good fit for HOPR and to explain why the current approach might not be optimal.
Available Funds
After the launch of the HOPR token, 100% of funds raised were moved to a Uniswap pool on the Ethereum chain in a HOPR-DAI pair. After the first DAO experiment, these funds stayed in the pool, but were transitioned to a Uni v3 pool.
The most recent DAO experiment saw the funds diversified somewhat. 500k of liquidity was moved to Gnosis Chain on the Swapr DEX. Another 250k was earmarked for a Uniswap pool on Gnosis Chain, although this has been delayed because Uni integration into Gnosis still hasn’t happened.
A further 250k of liquidity was moved to a HOPR-ETH pair on mainnet.
It’s the two mainnet pools which are under consideration in this vote.
HOPR-DAI pair on Uni v3 6.8m TVL
HOPR-ETH pair on Uni v3 200k TVL
The reason to consider more active management is that are ways to utilise these funds more efficiently that can achieve various goals. These could draw more attention to HOPR by increasing trading volume, or leverage pairings with other coins to try and positively affect the HOPR price. These are just examples. Again, I’d leave it to the individual projects to make a case for what can be achieved and how.
But with all the options available in DeFi in 2022, leaving a large amount of funds to simply dwindle seems like a suboptimal approach.
Finally, we’re talking about Uniswap liquidity on mainnet because that’s generally where liquidity management companies are able to provide their services. Support for other DEXs and chains is limited, for various technical reasons, and indeed several of the projects we talked to were unable to support HOPR at all at this time (e.g., one project would have required us to have a Chainlink price feed, but our trading volume is too low).
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Thanks for detailed information. It will help us in discussions.
CZs tweet from today seems somewhat relevant to the larger discussion, but I do not want to drop negative vibes in any of the other posts so…
"Two big lessons:
1: Never use a token you created as collateral.
2: Don’t borrow if you run a crypto business. Don’t use capital “efficiently”. Have a large reserve."
The part that seems relevant in this case is the belief that capital can always be used more efficiently in DeFi and the safe keeping of a large reserve. There are so many impressive strategies, ideas, concepts that continue to excite and electrify the space, but with them comes risk that simply cannot be calculated (at least not by most).
Sometimes less is more. All of the examples over the last 6 months of “blue chips” becoming insolvent offer a stark reminder of the risks involved, many completely unseen by the vast majority engaged with these entities, and how green DeFi still is.
I guess I would stress my belief that any experimentation with third party liquidity management should be done very cautiously and the lions share of the protocols liquidity should be kept safely in reserve.
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This is great background information and extremely helpful.
I’m strongly in favor of the active management of funds. I’m involved in another DAO that does this and the provider posts weekly reports to the forum for members to view.
Good question and a detailed answer from the team. Every reader will be well informed.
Thanks for this context, it brings more clarity
Looks like we need to enhance hopr’s liquidity.
I can’t buy hopr on uni because I don’t have Gronis’ chain, so the transfer and transaction fees are very high, if I buy in large quantities, it’s okay, but small quantities are not suitable
yes that makes sense.
Move to arbitrum or optimism
Move to arbitrum or optimism
Intresting suggestion. Can you please bring more information on how HOPR DAO would benefit from those?
thank you
Tell me, is there any information on the timing of the integration of Gnosis Chain into Uniswap?
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Thank you for the useful information. I don’t understand why hopr is some kind of external liquidity manager at all. What will it give besides the potentially great risk of losing everything entrusted to them. We have seen more than once how the largest market makers collapsed in a couple of days to zero. I think that you just need to wait for the positive in the markets and make a really working and necessary product. listings on exchanges, investor demand and the influx of new funds themselves will attract many market makers in pursuit of profit. There is no need to give anything to anyone and ask for something or pay for something.
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I totally agree with @Aleks. Hopr is one of the best projects in the cryptospace with its hardworking team and vision. Hopr DAO is very active and innovative. I believe that we have to focus on DAO mostly and make it most developed and innovative.
As for volume, it is not only Hopr that suffers from lack of the volume. We are already on Coinbase, Gate and Mexc. With Binance listing volume will not be a problem anymore. If it’s in our reach, then let’s try for Binance listing. If not then let’s focus on DAO development.
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As far as I know Gate and Mexc are not official listings and are not maintained by the Hopr team. Quite a few users have access to Coinbase. As far as I understand, the team believes that liquidity should be mostly on decentralized platforms, listings on large exchanges are not a priority right now. Binance is unlikely to host a project that has a product under development.
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trading fees cheapper, more attractive user on arbitrum
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I am kind of worry looking for some external fund manager. wish to be handle by the team and active community member who believe in hoper project and has some related experience.
I agree to this,