PoolHAUS and Decentralized Liquidity Provision
Last week DAOhaus introduced a new type of pooled liquidity through PoolHAUS (HAUS LP DAO). Today, after the end of liquidity farming rewards on Swapr; DAOhaus is excited to unveil the details, timeline and launch of PoolHaus! We hope that this sets precedent to the wider DeFi & DAO ecosystem through the use of this collaborative liquidity provision, governance & time-locks.
PoolHAUS will allow contributors to deposit Swapr WETH/HAUS LP tokens (on xDAI network) or WETH (Wrapped ETH on xDAI). These assets can be acquired by bridging WETH from mainnet, or by purchasing WETH on Swapr (xDAI) exchange. Contributors will then deposit WETH or WETH/HAUS LP tokens into the DAO by creating a membership proposal on the PoolHAUS interface.
After PoolHAUS collects all LP tokens and WETH proposals over the week long contribution window (August 2nd > 9th) — Fifty percent of WETH contributions will be used to purchase HAUS from existing liquidity pools (At a price range decided by the DAO).
After which the WETH and HAUS DAO balance will be converted to WETH/HAUS LP tokens. These LP tokens will be added to the DAO, then locked into the PoolHAUS minion (Minion’s are a DAO vault that can interact with smart contracts) for 3 months. After this period, rewards will be issued to PoolHAUS and contributors will be able to withdraw both their positions and rewards from the DAO.
If PoolHAUS is successful in its goals, this will be followed by a second PoolHAUS, taking learnings from this first experiment and continuing to innovate with collective Liquidity provision and Incentivisation.
The mechanisms detailed in this article will help to ensure that all LP providers are on equal footing, with entry pricing and timelines known by all contributors at all times.
Experimentation is the primary purpose of this DAO; purchasing HAUS from public liquidity pools and providing liquidity using an on-chain DAO has the obvious risk of being front-run. However by being so transparent with proposals, purchases and liquidity provision, PoolHAUS is looking to experiment within how token & LP coordination occurs across the DAO & DeFi ecosystem.
PoolHAUS will have four core objectives:
- PoolHAUS is an on-chain mechanism to coordinate and seed liquidity for HAUS token.
- PoolHAUS will receive rewards from UberHAUS for its contribution to HAUS liquidity and adoption.
- PoolHAUS will incentivise coordinated purchasing of HAUS and liquidity provision.
- PoolHAUS will set precedent around LP DAOs in general; Any token/DAO can deploy their own LP DAO to manage and add liquidity as well as farm rewards.
Who is able to join PoolHAUS
- Any address will be able to pledge to the PoolHAUS DAO, able to exchange (xDAI) WETH or WETH/HAUS Swapr LP tokens for LOOT shares (Economic rights for the DAO, no governance rights).
- Contributors who want Governance shares of PoolHAUS should join the PoolHAUS contribution parties on the 4th of August at 11am PST or 9th of August at 12pm PST in the DAOhaus Discord. Proving their humanity alongside their proposal (Claiming 1000 governance shares per human — All shares beyond this will be Loot for everyone).
- This contribution party will be the last chance for PoolHAUS contribution and a sybil resistance mechanism to ensure PoolHAUS governance cannot be captured by malicious actors.
- Each of these PoolHAUS contributors will then join a permissioned discord channel where PoolHAUS comms will take place.
How PoolHAUS will function
- Contributors will pledge a minimum of 10 WETH/HAUS LP tokens from Swapr, or 1.5 WETH to the DAO. Every 100 DAO shares (Loot or Gov) will represent 1 WETH/HAUS LP token or 0.15 ETH.
- Contributions will be open for a one week window; During which LP tokens & ETH contributions will be pegged at the start of the PoolHAUS contribution window.
- PoolHAUS will hold its LP position in the minion for 3 months, meaning contributors won’t be able to Ragequit (claim) their LP tokens back from the DAO before this 3 month period ends (Unless otherwise voted by the DAO).
- Rewards will be distributed to the DAO as a whole.
- PoolHAUS will receive HAUS from UberHaus, these tokens will be split proportionally to all DAO members.
- WETH contributors to PoolHAUS will receive bonus HAUS rewards, representing a 33% increase.
- Over the 3 month period, 2500 HAUS will be issued to PoolHAUS, these rewards will be distributed proportionally based on contributions. These rewards can also be increased by UberHaus if decided by the DAO.
- WETH contributors to PoolHAUS are given higher rewards than LP contributors; an additional 825 HAUS will be distributed pro-rata.
- These additional rewards will be airdropped to WETH contributors at the end of PoolHAUS.
This is an experiment first! As liquidity increases rewards can be increased accordingly.
- PoolHAUS will be open for proposals from Monday 2nd August.
- Contributions will be open for both WETH/HAUS LP tokens and WETH.
DAO Contributions will be pegged to the following values based on today’s LP token & ETH prices:(Adjustable before the 2nd of August)
100 Loot share = 1 WETH/HAUS LP token
100 Loot share = 0.15 WETH
With a minimum contribution of 10 WETH/HAUS LP tokens or 1.5 WETH (1000 Loot Shares)
Contributors should use this calculator to work out share-to-deposit ratios for WETH. (For example when depositing non round ETH amounts; 5.63 WETH = 3753 Shares).
The DAO proposal page will be found here
Each proposal should include these key details:
- Proposal Title: ‘WETH PoolHAUS contribution’ or ‘WETH/HAUS LP tokens PoolHAUS contribution’
- Description: Let us know why you’re excited about PoolHaus! (If joining during PoolHAUS joining party, please define who you are!)
- Tribute Offered: WETH/HAUS LP tokens or WETH or as deposit to the DAO. This amount can be any amount over the 10 LP token or 1.5 WETH minimum however remember to use the Share calculator when depositing WETH amounts.
- Shares Requested: 0 shares requested unless making proposal joining during ‘PoolHAUS joining party call’
- Loot Requested: Shares requested in accordance with above tribute math. (Example, 2.55 WETH pledge = 1700 Loot shares requested; 25 WETH/HAUS LP token pledge = 2500 Loot shares requested).
- Next Monday, the 2nd of August; PoolHAUS will open for proposals, the DAO can be seen here.
- PoolHAUS will be open for contributions for 7 days, after which the PoolHAUS onboarding party will occur on the 9th of August at 12pm PST. DAO funds will then be deposited to the DAO Minion (A DAO vault that can interact with smart contracts).
- PoolHAUS DAO will then deploy 50% of WETH held by the DAO to buy HAUS from existing liquidity; A DAO-share permissioned discord channel will discuss HAUS price limits (Purchasing between $9 — $15 for example), then execute trade via the DAO.
- This purchased HAUS and remaining WETH will then be converted to WETH & HAUS LP tokens.
- Depositing all LP tokens to the PoolHAUS Minion
- DAO contributions open on the 2nd of August, close 9th of August.
- DAO concludes (and LP positions withdraw-able) on the 9th of November.
- 3 Days Voting Period, Meaning all governance shareholders have 3 days to vote on every proposal.
- 2 Day Grace Period, Meaning all governance and loot shareholders are able to ‘Ragequit’ the DAO and claim their proportionate value held within the DAO before a proposal passes.
- ‘Fast outcome votes’ can be achieved with >50% DAO voter turnout.
PoolHAUS conclusion 🎉
PoolHAUS looks to introduce the idea of decentralised, coordinated token purchasing and liquidity provision to the wider DeFi ecosystem. Conducting an open experiment with transparent governance for HAUS token and Liquidity.
Join us in the #🏊LP-POOL-HAUS channel on discord to discuss PoolHAUS in more detail as well as participate in the onboarding party for PoolHAUS governance shares.