[RIP00003] - Implementation of a liquidity strategy on Sushiswap v3

Michael-RealT

Sylvain Leroux Why Sushiswap and not Curve Finance? (Of course, I ask because I know the latter and not the former

The choice of Sushiswap V3 to start allows us to stay in full REG, only uniswap allows it but it does not have a compatible interface on Gnosis
The particularity of the Uni and Sushi v3 pools allows to distribute the liquidity on a price range, several positions can thus be opened on various price ranges with a start and an end which allows to put in place strategies like the one presented here.
Curve, Balancer and all uni v2 type pools do not allow this implementation.

Sylvain Leroux

Michael-RealT Ok, thanks for your replies!

Michael-RealT

Sylvain Leroux What are/Are there incentives on Sushiswap for holders to put their REG on that pool?

No, there is no special incentive at the moment.

Michael-RealT

Sylvain Leroux Should we consider the REG a stablecoin or speculative vehicle?

REG is just a utility token

Michael-RealT

Madricas The choice of SushiSwap for the pool deployment should be reconsidered.
Once at the forefront of DeFi, SushiSwap does not appear anymore as a leading and innovative DEX.

On Gnosis Chain, it ranks 7th with less than $1M in TVL, far behind Balancer ($87.5M) and Uniswap v3 ($9M). And if we look at the details, SushiSwap V3 pools only accounts for $57k as of today. (source DefiLlama)

First of all, thank you for the very complete and thoughtful post, there are however some problems.

Uniswap is apparently not on Gnosis or at least not officially, the documentation, the interface does not allow to connect to any possible contract on Gnosis.
If the contracts are well deployed it would be complicated for possible beginner or normal participants to participate follow their positions.

For the other Dex as you mentioned they do not allow to do what the v3 pool allows, to start our liquidity it is interesting to be able to start with 100% REG, RealT and other people have put liquidity in USDC.
The possibility of defining the Price Ranges for several positions allows a sale of REG by the DAO without having a bearish precision on the price.

Subsequently we can imagine having other proposals to open pools on Balancer, V3 seems promising, for the moment the new interface is not very clear on the construction of its pools and requires a little research to find the use case and the right configuration.

So the choice of Sushiswap is mainly guided by the strategy of adding 100% REG liquidity, being able to precisely position the liquidity, and being able to concentrate the liquidity in order to help stabilize the price even in the event of a big sale.

The v2 type pools allow to have liquidity on a range from zero to infinity, which can be useful to always have a little something available

Fun fact: the largest V3 pool is a REG/USDC pool, bringing it close to the combined total of all the other V3 pools

Since the liquidity strategy of the proposal is built around the concept of concentrated liquidity pools introduced by Uniswap v3, I understand not considering DEXes with different models such as Curve or Balancer.
However, the proposal should clarify and argument the selection process of SushiSwap and, if possible, consider deploying on Uniswap v3 instead.

Michael-RealT

Madricas This alternative does not come without drawbacks:
technically, the armmv3 tokens would need to be wrapped
during high utilization periods on the RMM, it will be more difficult for LPs to close their positions and redeem stablecoins and for traders to sell REG for stablecoins due to the lack of available liquidity. However, the RMM dynamic rates should limit the occurrences and the impact of these events

Basically it's a great idea, especially since we could have asked 1inch to also route xDai or USDC, not just the armm variant.

The problem is that v3 liquidity pools are not compatible with atoken, so the yield would be lost forever.
To do this, we would have to create a token like sDai that wraps the armm token, which would complicate the use too much.

Madricas

DRKTT Uniswap is NOT on the gnosis chain. Source : Uniswap.

Per the Uniswap Labs support page:

The Protocol is deployed on other chains that may not be supported on the Labs interfaces. Deployment is determined by a vote of the governance community, which is independent of Uniswap Labs. Uniswap Labs does not participate in governance votes.

While it is not integrated into app.uniswap.org, Uniswap v3 is live on the Gnosis Chain.

Uniswap v3 Gnosis - vote.uniswapfoundation.org/proposals/36
Official Uniswap v3 Deployments List - https://gov.uniswap.org/t/official-uniswap-v3-deployments-list/24323/3#gnosis-7
UniswapV3Factory - gnosisscan.io/address/0xe32F7dD7e3f098D518ff19A22d5f028e076489B1

The Gnosis Chain deployment is not the only one missing an integration into the main frontend. Fortunately, oku.trade offers an interface that lets you create Uniswap v3 pools and manage your positions.

@Michael-RealT I think this may answer some of the problems you have brought up, and that I would have agreed with otherwise.

Michael-RealT

Madricas Uniswap v3 Gnosis - vote.uniswapfoundation.org/proposals/36
Official Uniswap v3 Deployments List - https://gov.uniswap.org/t/official-uniswap-v3-deployments-list/24323/3#gnosis-7
UniswapV3Factory - gnosisscan.io/address/0xe32F7dD7e3f098D518ff19A22d5f028e076489B1

The Gnosis Chain deployment is not the only one missing an integration into the main frontend. Fortunately, oku.trade offers an interface that lets you create Uniswap v3 pools and manage your positions.

@Michael-RealT I think this may answer some of the problems you have brought up, and that I would have agreed with otherwise.

thanks for the additional info.
I find it unfortunate that Uniswap does not officially list its information.
I looked for oku, honestly, for beginners or less experienced it is very heavy as an interface, it is too trading.
In addition, the dex aggregators on Gnosis do not seem to be routed on Uniswap.

So I think it would be good to already start with Sushiswap, because in the end we do not need liquidity other than that to buy and sell REG.
This will allow it to be set up quickly.

Then in a future proposal to extend the liquidity on Uniswap, for example with xDai.
And now on USDC with Sushswap, since it is the largest pool we currently have

Maybe by the time the uniswap pool is set up, we will have an update on uniswap that will make it more accessible.

Michael-RealT

🇺🇸
This proposal seems ready for the OnChain Vote.
I have adjusted the price ranges for the liquidity deposit.
These price ranges are indicative and depend on the price of REG at the time of creating the positions, we will respect the width of the positions, but adapted according to the price of REG which will probably move between the time of the start of the vote and the end (10 days).

If you have any comments to make, this is the last moment

🇫🇷
Cette proposition semble pret pour le Vote OnChain.
J'ai ajuster les plage de prix pour le dépot de liquidité.
Ses plage de prix sont indicatif et dépendent du prix du REG au moment de la création des positions, nous allons respecter la largeur des positions, mais adapté en fonction du prix du REG qui bougera probablement entre le moment du début du vote et la fin (10j).

Si vous avez des commentaires a faire c'est le dernier moment

anon

Michael-RealT it is unfortunate that you don't really take the very good feedback from some fellow community members. Your responses are mostly to justify and push forward your own proposal.

I also think that the proposal is incomplete without mentioning EXACTLY how the management team is selected and how can the community participate. I don't agree that the RealT team should be involved at all in this. Are they already cleared by RealT compliance to manage this? What if they don't get clearance?

Also I do think that the proposal should include the compensation of this management team which is another variable yet to be determined.

The "metrics of success" are also to be discussed and determined.

But still you say the proposal is complete and ready for vote. So it gets approved and then what? You will implement the pool without all of those things that need yet to be decided?

NicoCrypto

Pourquoi un écart d’allocation aussi important entre Mt-Pèlerin 500k et Sushiswap 200k?
De ma comprehension, l’objectif des deux propositions est relativement similaire, augmenter la liquidité du token et du même coup la trésorerie de la DAO.
Est-ce que l’écart vient du fait de la gestion active de la liquidité sur Sushiswap et donc d’une prise de risque plus importante pour la DAO?
Mauvaise manipulation, entente entre les gestionnaires/signataires et …

Michael-RealT

NicoCrypto Pourquoi un écart d’allocation aussi important entre Mt-Pèlerin 500k et Sushiswap 200k?
De ma comprehension, l’objectif des deux propositions est relativement similaire, augmenter la liquidité du token et du même coup la trésorerie de la DAO.
Est-ce que l’écart vient du fait de la gestion active de la liquidité sur Sushiswap et donc d’une prise de risque plus importante pour la DAO?
Mauvaise manipulation, entente entre les gestionnaires/signataires et …

Plusieurs élément pour une bonne réponse :

Vendre au travers d'un prestataire centralisé comme MtP est simple a comprendre, au travers un DEX et encore plus les type Unisv3 sont plus compliquer, il faut donc allé étape par étape pour comprendre et tester la stratégie
les 2 modèle sont différente, un prestataire vas vendre au prix du marché, dans un dex type univ3 il y as des implication directe sur le prix avec la répartition qui sera effectué
Il existe de multiple DEX, multiple paire, avoir un budget plus petit pour démarrer permettra de renouveler l'exercice sur d'autre DEX/Paire

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