AIP3: Liquidity migration from 1inch

There is almost $900k worth of 1INCH-ARCXOLD LP tokens in the ARCx treasury DAO wallet. I propose that this is converted to the post split new ARCX token, and the tokens added to 1INCH exchange to boost liquidity further and to earn fees on trades.

Having discussed this in depth with community member Ken on discord, I felt it would be appropriate to bring this to the next level and discuss here before putting to a snapshot vote.

The current position is both an inefficient use of capital and slows the transition from the old token to the new by enabling liquidity on an effectively “dead pair”. With the ever approaching launch of the DeFi passport and the uptick in trading volume. A boost in liquidity would be welcome. The Uniswap v3 position was recently rolled out with the objective of owning a high portion of the liquidity to earn fees on trading. As almost all trading is on the post split ARCX token, adding another pair would further increase the fees earned to the treasury DAO.

Feedback and suggestions would be much appreciated on this matter before putting it to vote.

3 Likes

Agree we need the new token as liquid as possible.

What is the reason to keep liquidity on 1INCH? Is this pool still incentivized with 1INCH token rewards? If not, they are really a DEX aggregator first, and I’d prefer we migrate to more gas efficient (Sushi) or capital efficient (Uni v3) DEXs.

2 Likes

Great suggestion, this is a no brainer in my mind - only thing left to figure out in my mind is if it rolls into an existing pair or a new one

1 Like

The main reason would be to respect the early relationship formed with 1inch. We effectively did a token swap with them to begin trading. And they actually have the same amount of LP tokens in their wallet. Current breakdown of liquidity for context:

Uniswap V3: 1M arcx. 770k USD (currently out of range).

1INCH-ARCX old: 875k usd x2 (1.75M USD total)

SushiSwap: 1.6M USD. Rewards ending 26th august. Not treasury owned.

We need to get that 1inch pool converted to the new ARCX token, keeping the liquidity on 1inch will encourage them to do the same and will lead to much more depth on aggregators.

2 Likes