[HOPR] Proposal - Arrakis PALM Launch Partners

HOPR DAO v0.5
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Depending on the perspective towards impermanent loss, there are only two ways to mitigate it

  1. offer some kind of incentive to LPs, such as liquidity mining or IL protection by a third token
  2. never make impermanent loss permanent by not rebalancing position with swaps

The first approach is never sustainable because one way or another the incentive will become worthless. The second approach is more realistic and also what we aim for.

But, impermanent loss should be looked at differently, especially for protocol owned liquidity, as IL is not the focus because you provide liquidity mainly to make YOUR token liquid so ppl can trade.

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Update 12/Feb/2023

Hey HOPR community,

We at Arrakis are committed to full transparency with the projects and communities we are working with. So here I just want to give some updates on our end regarding our smart contracts. After the initial deployment, we found an issue with our auditors that could create an attack vector on “public” ArrakisV2 vaults. All PALM vaults have never been affected btw since they are private for a single depositor, which will be the case for HOPR as well. But still this made us do another round of checks with our auditors, have made the requisite changes, and have deployed everything freshly again before getting started with any customers. The updated audits are in the repos now!

At the same time, our first PALM vault has been killing it and doing exactly what it’s supposed to do as we designed it. I hope this will give a sense of confidence to HOPR community in our capability of helping HOPR bootstrap and deepen its liquidity! Please have a read here if you are interested!
https://twitter.com/ArrakisFinance/status/1623319923559636994

2 Likes
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Thanks for the update!

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Alright guys! Finally, we are going to roll! The vault for HOPR has been deployed, and under the guidance of Hopr team, I’m posting the instruction to fund the vault from Hopr DAO here:

TLDR:
call this method on PALMTerms (0xB041f628e961598af9874BCf30CC865f67fad3EE) PALMTerms | Arrakis Developer Docs
from owner (0x2D8E358487FeDa42629274CE041F98629Bf65cF3) with vault param as your vault (0xC7b95A90D5C7BD234deF512Be51Afca3002DBE37)

Full explanation:
Step 1 - get some DAI and HOPR into owner multisig
Step 2 - approve PALMTerms to spend and
Step 3 - call increaseLiquidity on PALMTerms, with params:

{
 vault: 0xC7b95A90D5C7BD234deF512Be51Afca3002DBE37,
 amount0: <amount of DAI>,
 amount1: <amount of HOPR>
}

network: Ethreum mainnet
owner: 0x2D8E358487FeDa42629274CE041F98629Bf65cF3
PALMTerms: 0xB041f628e961598af9874BCf30CC865f67fad3EE
vault: 0xC7b95A90D5C7BD234deF512Be51Afca3002DBE37

You’ll also need ABI for PALMTerms implementation, find that here: PALMTerms | Address 0x65b87a8A6c173D9ffdE1F4C1D97187820495c515 | Etherscan (scroll down to bottom to find contract ABI)

Step 4 - fund the gas tank
After funding step, funds are in vault but strategy is not “active” and funds are not going in and out of uniswap yet. To activate strategy anyone may call fundVaultBalance on PALMManager to fill the gas tank with some ETH for the keepers that will execute the strategy, see:

Regarding attaining the liquidity to the multisig prior to depositing into the vault, the following process can be followed:

  1. Liquidity for PALM will be taken from the existing HPPR/DAI pool (Uniswap V3: DAI-HOPR 2 | Address 0x87986ae1e99f99da1f955d16930dc8914ffbed56 | Etherscan).

  2. The amount to withdraw from the pool is 5% of the existing liquidity, evenly split between HOPR and DAI, as indicated in the snapshot vote Snapshot 1 and Snapshot 2.

  3. Attain 1.5 ETH with DAI through COWSwap and then use it to fill the gas tank for PALM’s executions.

That’s it! Hopr team can notify us once it’s all done!

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supported

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Hi @barbarossa_Arrakis

Thanks for the instructions. The only questions are related to the gas tank. Is there somewhere we can read more about this? It wasn’t immediately obvious from the docs.

What does the gas in the gas tank cover? The original proposal stated that Arrakis would cover the gas fees involved in actually executing the strategy, so presumably this is for something else.

What is a good ballpark amount to fund it with?