Across ($ACX) Community Initial Liquidity Proposal

*ACP1: Across ($ACX) Community Initial Liquidity Proposal

Summary -
With the upcoming token launch, liquidity is an important consideration. I am proposing that Across use Balancer for their liquidity DEX and that Risk Labs provides some initial $ACX incentives from the Across treasury for LPs to help establish deep liquidity that will minimize long term cost.

Background:

Over the past few weeks $ACX liquidity has been a hot topic as we await the token launch. The community has held multiple AMAs on potential liquidity solutions, conversations in discord, questions, and ideas about the best options for liquidity. This proposal summarizes much of the discussion and aims to lay a foundation for $ACX liquidity alongside the upcoming token launch.

Proposed DEX/Platform:

Given multiple options reviewed and considering cost efficiency, ease of maintaining deep liquidity, opportunities for additional yield for LPs, and strategic partnership in the ecosystem, I am recommending we align as a community alongside the Across/RL team to use Balancer for the main liquidity pool for ACX with a 50/50 ACX/wstETH pool at token launch. This will provide one pool to focus on establishing deep liquidity, minimize cost & effort to maintain said liquidity long term.

This provides a simple approach as a foundation and benefits include:

  • Using a trusted platform in Balancer
  • Keeping a simple 50/50 pool to minimize complexity or potential IL
  • Using wstETH as the pair provides deep liquidity and also additional yield opportunities other than trading fees for LPs through the Balancer/Aura framework that allow for cost efficient provision of liquidity instead of having to constantly incentivize long term.
  • In addition, aggregators can route swaps from eth to ACX even when the pool is wstETH/ACX. Balancer’s UI uses cowswap for trading and they are very well integrated so from a buyer/seller’s perspective it is no different than having ETH as the pair to ACX

Initial Incentives:

It’s important to solidify this pool as the primary venue for trading ACX immediately so when the launch happens we don’t see fragmented liquidity across DEXs. I propose that the protocol treasury allocate some ACX towards direct incentives on the pool (LP’s would earn ACX).

For the first two weeks, I am proposing we allocate 60k ACX per week to encourage deep liquidity and establish this as the main pool for ACX trading. The Balancer team confirmed they can directly distribute these rewards to LPs through their gauge framework which means no additional effort for calculations or distribution. I would also recommend as part of this proposal that the Risk Labs team monitor the pool during these two weeks to watch depth of liquidity and LP participation and have the ability to adjust the reward rate to change behavior as they see fit.

If you would like to look at detailed calculations for what potential APR and estimated ACX counts, reference this spreadsheet from @hasherror here: ACX Swap Liquidity Scenarios

In addition, by using Balancer, we will work through their governance process to enable a gauge proposal to receive veBAL and Aura rewards emissions for LPs. Typically takes a couple weeks. We can monitor liquidity levels throughout the timeframe and adjust as needed, but the first two weeks of $ACX LM rewards are intended to start off strong and enable us to transition to a sustainable scale of APR through bribes that more closely align to the reward locking staking rewards.

Relative Timeline:

There may be more nuance or additional details, but given the various moving pieces, I wanted to show key milestones and timeline relative to the Airdrop and token unlock announcement to set expectations on liquidity and LM incentives.

1.) Risk Labs to formally announce timing of token launch/unlock

2.) Some community members adds liquidity to Balancer pool to get it started as $ACX is available to claim

4.) Pending agreement/approval of this proposal Across treasury send needed ACX to Balancer for 2 weeks of LM rewards
5.) Liquidity incentives start

6.) Post gauge governance proposal on Balancer once pool is up to tap into LP incentives through Balancer/Aura. Pending approval, those will begin in 1-2 weeks

Vote
Please vote on this proposal as a way to enact this streamlined governance process with a 3 day forum poll. Majority vote should carry the proposal.

Voting “Yes” supports the proposal to have Across use Balancer for their liquidity DEX & that Risk Labs provides some initial $ACX incentives from the Across treasury for LPs to help establish liquidity

Voting “No” is not supporting this proposal and don’t agree with this as a solution.

Do you support this proposal?
  • Yes
  • No

0 voters


47 Likes

It’s a well thought out proposal that EA has put forward for the community and should be moved forward as it helps $ACX to setup and be traded for people who see value in it and would like to be part of the Across community.

14 Likes

This is a well thought out proposal.

Kudos to you EA for taking your time to put this together. I must say you’ve make a reasonable and fair proposal.

8 Likes

Nice Active proposal

A very reasonable proposal , it will greatly benefits the whole ecosystem :fire:and also induced more trust to the community

9 Likes

Sustainable development plan and not just this equal fork would not just equate but attracts more investors, which is the sol-aim of DAO. ($ACX)

8 Likes

Wen token bby! Great job ea and hash! Time for the official across launch to begin! Take off imminent. Moon incoming.

8 Likes

I shared my thoughts in discord but will share here as well, i think this is a well thought out proposal and only have one point of contention. I would recommend considering extending LM rewards to a month long instead of two weeks. Thanks for putting this together ser, well done

9 Likes

I agree with your take poopster.

My view is after the first couple of weeks Across should be transitioning from direct incentives to the Aura hidden hands birb markets. The direct incentives for the first 2 weeks has 2 purposes imo. First, the gauges for Balancer veBAL and AURA vlAURA programs won’t be able to provide incentives on day 1 (length of time for first rounds of birbing, voting, etc) so Across needs a “bridge” of incentives for the first couple weeks. Also, the direct incentives are intended to aid in bootstrapping the LP with community participation with the goal of getting ACX the depth of liquidity sufficient to support reasonably low friction swapping quickly.

My 2 cents, a good Across birbing strategy that aligns to end of first 2 weeks of direct bootstrapping emissions and settles into a longer term plan is great next step for discussion.

4 Likes

Thank you @EAsports for this proposal.

Given that the launch is planned in the next few weeks, it is important to have a mechanism in place for attracting liquidity. This could be a good starting point that can be further refined based on the results and the community feedback.

5 Likes

This is awesome!!! This will boost up ACX to the moon! :rocket: With this proposal, this will further cement ACX’s stability and provide firm hold on DEX markets. Balancer is a good platform with established market and support. Definitely worth the wait! Lezgaw ACROSS :bridge_at_night:!

6 Likes

This is Nice EA … keep up the good work , I want to see $ACX at 5$.
Let’s end 2022 on a good note​:hibiscus::tulip:.
Yeah… …

6 Likes

Why not Uniswap instead of Balancer? Uniswap will almost surely become the eventual marketshare leader for ACX volume.

5 Likes

Nice decision, hope the project has a great future :rocket:
Is the token going to be released before the new year?

5 Likes

Right thing to do! Balancer good platform for liquidity! Community must support this! Let’s the launch begin!

6 Likes

Thank you @EAsports for putting this together. I think this plan accomplishes a few key things.

  • Recognizing the importance of establishing a trading liquidity pool and centering the community around one single pool.
  • Giving the flexibility to adjust the incentives in order to achieve a sufficiently liquid token launch.
  • Acknowledges that this is a stepping stone towards a more long-term incentives program for this pool.

I personally support this proposal.

The sentiment around risk labs is supportive of this and it seems to me we will be happy to execute the wishes of this proposal.

7 Likes

Community Initial Liquidity Proposal HM interesting suggestion. Need to try. agree with this as a solution.

4 Likes

Good idea! Both hands for. During your work, you have come a long way and developed dramatically, I have been watching your project from the very beginning!

4 Likes

It’s a good idea. A necessary and very necessary update for the project. I’m sure the project has a great future together with a great ecosystem and a cool community

4 Likes

Very interesting activity, we look forward to more!)Your product is very good, and important in our time, the main thing is safety in translation)

3 Likes

Yeah, I like it. Balancer has quite a lot of lindy. I think we should pick the protocol which has the highest likelihood of surviving a potential 3 year long bear market

4 Likes