In-app swap for BENDDAO using Native’s technology

BIP Drafts
#1

TL;DR

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.

The Problem:

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.

The Solution:

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

native.org

https://twitter.com/native_fi

  • Integrate in-app swap using Native
  • Do not integrate in-app swap

0 voters

7 Likes
#2

As there are no additional cost, I don’t see a potential risk here. I think this proposal can benefit our BEND token liqudity situation.

5 Likes
#3

In my own opinion, Integrating or creating an in-app Dex on Native would be the best option for the BEND users as it gives the users easy access to swap their token with reduced or no cost. And it would eliminate the problem of slippage on uniswap.

5 Likes
#4

This is big news for all BENDDAO users and the team! More of a win-win situation here as users will easily get BEND at a better price with BENDDAO still retaining the fee revenue

1 Like
#5

I really think integrating in-app swap using Native will be a great idea since it will allow the verse trading of BEND in well decentralized manner and also, BENDDAO retaining the fee revenue.

#6

In my opinion, this steps should be taken because there’s a lot benefits it will give in the future especially to both users of BENDDAO and Native.

#7

Better to include technical documents. Additionally, the voting rules will be based on the BEND value used to establish the pool on Native.

#8

I think this would improve BENDDAO ecosystem after eliminating third parties, no funding cost sounds good, I would definitely prefer most of my activities to be within the ecosystem

#9

Native is proposing a loan of 5M BEND token worth around 16K USD at the moment. With this loan, Native can help improve the liquidity of the BEND token. BEND is currently using a UniV2 pool with 1M liquidity. Native is 8-10x more capital efficient than AMMs. Native can achieve the same depth with just a fraction of the capital. In addition, if we can capture all of the current DEX volume and 5% of CEX volume, that would be $33k in revenue just from the pool fee annually.

BENDdao users are borrowing from BENDdao to finance their other defi activities like swapping. If the users can preform those swapping activities within BENDdao rather than on 1inch or UNI. BENDdao can earn all those swapping fee too.

BEND has a total of 36m of reserves. Assuming that users trade on the BENDdao website for 2x of that reserve instead of doing so on 1inch or uniswap. At 30 bps fee, that is 36M x 2 x 30 bps = up to 216k usd in fees when users exchange the borrowed token. This would likely be multiple times a year.

#10

anyone can make a snapshot vote according this with 10k veBend: Governance Mechanism - Portal

1 Like