Disclaimer: this was originally a “Signal Request”. I retagged it to “Informal Poll” after some feedbacks in the MakerDAO’s chat.
Gas prices are getting higher and higher. The rapid growth of Binance’s BSC is showing us that, while perhaps not the final answer, sidechains will play an important role in the next few months.
xDai (official website: https://www.xdaichain.com/) is an Ethereum sidechain with dPoS (delegated proof of stake) mechanism. It is one of the most promising scaling solutions that works today. It is a direct competitor of BSC and it is interesting to us because:
- it is more decentralised (in fact I will propose another time that MakerDAO could run a Validator on xDAI)
- gas is paid in xDAI (1:1 backed by DAI), and so the success of xDAI seems to be linked to that of DAI (and so of MakerDAO).
Currently the xDAI chain holds ~40m usd worth of assets that have been bridged from Ethereum mainnet (this includes more than 7m DAI). Source: xDai (xDAI) Explorer
This number is growing quickly (it was ~22m about 10 days ago) but is still low. What is needed are more Liquidity providers moving their assets to xDAI.
For example, in the following screenshot, you see how horrible the MKR/xDAI pair is on Honeswap (https://honeyswap.org/), an Uniswap clone running on xDAI:
I propose to:
- mint (or buy in the market) a number N (example N=1000) of MKR.
- take a corresponding amount of DAI from the SB (now (~2.2k * N) DAI)
- Act as LP on Honeyswap on the MKR/DAI pair.
Technically, this will be done manually using the mandated actor multisig to buy MKR and add liquidity on Honeswap: xDAI accounts use the same private keys as in Ethereum, furthermore Gnosis multisig is compatible with xDAI (see source: here).
This would be done gradually (to manage risks with usage of the xDAI platform) over the course of a few weeks.
The expected result is:
- help/boost the growth of xDAI
- make MKR one of the most liquid tokens on this network.
(see https://info.honeyswap.org/ for an overview of statistics on Honeyswap).
- 50 MKR
- 100 MKR
- 200 MKR
- 500 MKR
- 750 MKR
- 1000 MKR
- 1200 MKR
- 0 - I don’t want to do that.