We propose BENDDAO deploy its own in-app swap using Native’s technology and liquidity infrastructure. By leveraging Native’s free infrastructure, BENDDAO’s in-app swap will be a much needed feature that improves user experience and removes the need to leave to third party websites to trade BEND and other tokens. Native’s liquidity infrastructure gives BENDDAO access to pricing strategies from Tier 1 professional market makers, all on-chain. This will improve capital efficiency and liquidity for the BEND token by an order of magnitude. Finally, this proposal will also allow BENDDAO to earn swap fee revenue from its in-app swap.
Currently, BENDDAO users have limited options for trading BEND in a decentralized manner. They have no choice but to choose between CEXs and a single DEX pair on Uniswap. To make matters worse, those who wish to trade on DEXs will experience serious slippage on the relatively small Uniswap BENDDAO - WETH pool.
We propose that BENDDAO use Native to create its own in-app project owned DEX, powering swaps between BEND and any other token on Ethereum.
Native’s unique PMM pricing model will allow BEND trading pairs to receive professional market making onchain. This means the in-app DEX will have the efficiency of a centralized exchange with improved trading depth, liquidity, and capital efficiency. Each trade on the in-app DEX will also contribute to increased real trading volume on BEND’s CEX listings as Native’s professional market makers hedge their risks.
The end result is increased liquidity on both CEXs and DEXs for the BEND token.
Finally, all trading fees earned from the in-app swap will be automatically sent to the BENDDAO Treasury and used for purposes that the community chooses.
What will it cost?
- There is no funding cost required.
What we’re asking for?
- 1 day engineering time to integrate Native and build the in-app swap.
- Lend an inventory of BEND tokens to our Professional Market Makers to market make.
What is the net positive for BENDDAO?
- An in-app swap feature that will improve user experience and keep users within the BENDDAO ecosystem.
- Increased liquidity and depth for BEND on DeFi, compared to the poor liquidity and depth of BEND pairs on Uniswap.
- Better BEND pricing for users of DeFi compared to Uniswap.
- Increased liquidity and trading volume on BEND’s CEXs listings everytime a user trades on the in-app swap.
- Fee revenue from the in-app swap will be directly captured by BENDDAO.
Useful Links & Media
- Integrate in-app swap using Native
- Do not integrate in-app swap