[Proposal] Migrate DEX liquidity from Ethereum to Fantom

Author(s): @RTP , @cristiano , @garai , @josh

Summary

Hi everyone!

I recently initiated a discussion to provide liquidity from the Tempus Treasury fund to incentivise the upcoming SpookySwap TEMP/WFTM pool as we look to launch on Fantom. This program will commence soon after launch (assuming the community voted ‘yes’).

In this proposal, I suggest migrating approximately $2m of the current liquidity deployed in Uniswap on Ethereum onto SpookySwap on Fantom.

Motivation

SpookySwap is currently the largest DEX on Fantom with $1.2bn TVL (source: Defi Llama) with approximately $250m 24 hr trading volume on average (source: Coin Gecko).

To foster healthy growth and traction within the Fantom ecosystem as we launch and develop the products, we believe having a tradable $TEMP token on Fantom is key to enabling Fantom users to join the Tempus community. Lastly, by doing this, we also expect a net increase in $TEMP trading volume, which is generally a key criterion for CEX listings.

Proposal

The $TEMP token is currently one of the most liquid tokens for the market cap on Ethereum, with approximately $8.8m of TVL between the Balancer and Uniswap liquidity pools. This allows $TEMP tokens to be traded at large sizes with minimal slippage. We believe migrating the $2m liquidity from the Uniswap USDC/TEMP pool to a new TEMP/WFTM pool on SpookySwap will provide sufficient liquidity for larger trades to be executed on Ethereum with minimal slippage and at the same time allow Tempus to captivate some of the vibrant Fantom community to join Tempus.

Please see the illustration below for further details:

Next steps

  1. Leave this proposal open for discussion until February 5th 2022
  2. If there are no material objections, open a Snapshot vote with the proposal
  3. If the proposal is voted yes, we will proceed with withdrawing from the USDC/TEMP Ethereum pool and bridging across (using Multichain) the assets
  4. Convert USDC to WFTM
  5. Wait for TEMP to be whitelisted with Multichain and SpookySwap (underway)
  6. Provide liquidity to the $2m USD liquidity to TEMP/WFTM
9 Likes

hi, nothing to add, we need this move)

Considering the high gas fees on Ethereum, this could be great to reach out to a wider audience who would like to use the protocol but might otherwise feel priced out :raised_hands:

Just one thought: Balancer pools are currently utilized in Alchemist crucible on ETH. Once the rewards end there, isn’t there a risk of losing most of the liquidity on ETH? Other than that I support the move to Fantom.

Good question! Most of the liquidity in the Balancer pool is provided by the Tempus Treasury, so the Alchemist rewards are responsible for only a small percentage of that pool’s liquidity.

Another point that I can add to this is we have a proposal open to whitelist TEMP on Bancor. This program is expected to make up for the liquidity which is going to be migrated over to Fantom. https://gov.bancor.network/t/proposal-to-whitelist-tempus-finance-temp-with-100-000-bnt-trading-liquidity-limit/3395

1 Like

For it. I think liquidity is sufficient enough to move a bit.

2 Likes

Great idea. Excited for what’s to come @garai

1 Like

As this proposal generally seems to be well supported by the Tempus community, a Snapshot vote has been launched. Voting will remain open until 12.00pm (midday) UTC on Thursday 10 February 2022.