DIP-10: Migration of 2 Million DODO Tokens each to Avalanche, BOBA, and Moonriver for Future Incentives

Summary

DIP-10 proposes migrating and allocating 2 million DODO tokens each to the Avalanche, Boba, and Moonriver Mainnets to be used for liquidity mining and as other trading incentives in the future.

Motivation

DODO has been deployed on 8 public chains so far. However, with deployment alone, we cannot fully capture potential users and their trading volume. We therefore propose to migrate tokens to these networks and launch incentive campaigns to more effectively capture the value in these networks’ ecosystems.

Avalanche is one of the fastest growing networks in the past year. It is EVM-compatible and operates on a PoS model which features faster transactions and low gas cost.

Boba is a next-generation Optimistic Rollup layer 2 network that reduces gas fees, improves transaction throughput, reduces exit periods, and extends the capabilities of smart contracts.

Moonriver is an EVM-compatible parachain deployed on Kusama, a companion network to Moonbeam and provides a permanently incentivized canary network.

DODO’s integration into the Avalanche, Boba, and Moonriver ecosystems will enable these ecosystems to enjoy the unique benefits and features provided by DODO’s innovative Proactive Market Maker (PMM), such as highly capital-efficient liquidity pools, SmartTrade, Crowdpooling, and more.

Token incentives are an effective way to attract liquidity providers (LPs) and boost trading volume for protocols that are in the growth phase. Providing DODO tokens as incentives on these three networks would also significantly increase the number of DODO token holders, which would spur significant growth for the DODO community.

Specification

DIP-10 proposes migrating and allocating 2 million DODO tokens each to the Avalanche, Boba, and Moonriver Mainnets to be used for liquidity mining and as other trading incentives in the future.

Since DIP-8 was passed, DODO has acquired a significant competitive advantage in the stablecoin trading market due to our superior aggregation and low trading fees. This advantage brings DODO more users and more trading volume.

Stablecoin pairs are usually the most active trading pairs on public chains. Under the new fee structure introduced by DIP-8, incentivizing stablecoin pools with mining rewards is the fastest and the most cost-effective way to attract more users and trading volume, once the migration of DODO tokens to Avalanche, Boba and Moonriver is completed.

If DIP-10 is passed, the DODO team will migrate and allocate 2 million DODO tokens each to the Avalanche, Boba, and Moonriver Mainnets, and start liquidity mining rewards for their stablecoin pools first, followed by other incentive programs.

Note: These 6 million DODO tokens are DODO’s budget for the Avalanche, Boba, and Moonriver Mainnets, and it is not yet certain whether they will be fully utilized. The tokens will be sourced from the 60% Community Incentives allocation, as specified in the DODOnomics whitepaper.

Available Options

  • Approve
  • Reject

This concludes DIP-10. Suggestions and comments from community members are always welcome and encouraged.

Governance Vote

Voting Period: January 21, 2022 12:00 to January 25, 2022 12:00 SGT

Link: Snapshot

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