Sushiswap is now live on xDai, however liquidity is too low to support trading volume. Sushiswap is a premier DEX on Ethereum and has recently added a multi-chain component. To provide trading incentives on xDai we propose adding $1M worth of STAKE liquidity into the protocol from the Ecosystem Fund. Sushiswap has indicated a desire to match this incentive resulting in 2M total liquidity added to the protocol.
We propose a 70/30 split in allocation with 70% allocated to liquidity for swaps and 30% allocated to the Kashi lending protocol. This will serve to promote both decentralized trading and lending on xDai. Additional liquidity will create pools with less slippage and promote DEX usage on xDai. Cross-chain arbitrage opportunities, as well as low, stable fees, will incentivize new traders and increase participation within the xDai DeFi ecosystem.
We propose allocating points to the following pairs:
Community feedback on this allocation, suggested pairs or other comments are welcome below. This proposal is time-sensitive, and we are adding a concurrent 2-day snapshot vote to assess community sentiment and expedite the process.
- Expected duration or delivery date
Once passed by governance processes, the xDai team will provide the corresponding amount of STAKE tokens from the ecosystem fund.
Ongoing snapshot vote can be found here.