I’m proposing to migrate the current liquidity (46K USD in ETH) from Balancer to SushiSwap and further build the PUNK_BASIC liquidity on SushiSwap in the long-term.
The two practical reasons why I’m proposing this are that SushiSwap sees significantly more organic volume than Balancer and that SushiSwap is generally quite willing to incentivize small new pools with SUSHI. Knowing this I believe SushiSwap should be a good place to build long-term liquidity for PUNK_BASIC.
I also believe that this could be an opportunity to give more exposure and liquidity directly to the PUNK_BASIC D1 fund at the same time. IMO, the basic punks fund is a very good one to promote to the general DeFi public : it’s the cheapest one, and floor punks are generally considered as the safest/simplest punks to invest into. The current PUNK fund that gets the most attention from us is sitting at at much more expensive cashtag than floor punks (26K vs 4.5K), and NFTs beginners from the DeFi world might not understand why the zombie punks warrant the fund a higher price tag than floor punks.
I’ve already created and seeded the PUNK_BASIC-ETH pool ( with a small amount ) at the current spot PUNK_basic-ETH ratio.
If the NFTX community is interested about this proposal and wants to proceed with this, I’d like to then consult the SushiSwap community on adding the PUNK_BASIC-ETH pool to the Onsen menu so that they can help us build liquidity in this pool with their SUSHI incentives.
I like this proposal for a number of reasons, but first I will comment on Balancer and D1 funds.
Right now the (D2) PUNK fund is a pool on Balancer which is a combination of five D1 funds. Each of the D1 funds has its own (asset)/ETH pool on Balancer too. I have been thinking more about this though and do not believe it is necessary to have D1 (asset)/ETH pools on Balancer and that the D2 funds are perfectly functional without them.
I agree with state that PUNK-BASIC is a keystone fund because it tracks the CryptoPunk price floor, and I think it would be good to strengthen ties with Sushiswap, which is an up-and-coming open-org that is eager to work with us.
I like this proposal but I don’t think we should pass anything like this, but rather use it as a guiding point and also to show that the community is interested in sushiswap.
I think we should move all liquidity (except the Balancer Pools required for d2 funds) to sushiswap, segmenting it early on imo is not efficient.
Also I would like to know more on the effect of removing d1/eth pools on the d2 pools.
I wholeheartedly agree that Punk-Basic should be an important, and focused on, fund as it is in direct relation to the punk price floor, which is the most commonly traded punk.
I like the underlying idea behind this @state.eth, but I think the eventual outcome in the form of a governance proposal (for NFTX voters to vote on) must include all the ups/downsides of doing this, as well as making the approach bigger by not only doing this for the currently live D1/D2 Punk indexes, but all upcoming launches.
FWIW, I’ve already contacted the Sushi team to understand what the beneficial effects are in terms of additional cashflows towards the DAO treasury by purely moving NFTX/ETH - which lands around 500k~ USD/year worth in $SUSHI (including vested), at current prices (This was a few days ago).
Moving all the underlying D1 pools, as well as the D2/ETH pair to Sushi will roughly double that amount.
There’s downsides to Sushiswap versus Uniswap which I’ll also take into account. I will work a little on this tonight & tomorrow and try to get back with a rough draft re. the potential pros & cons.
hey ChopChop! I like this, if we can shoot higher and make a bigger proposal for all NFTX and funds liquidity, I’m all for it. This was kind of meant as a first step to try and collaborate with SushiSwap but I definitely support going with a bigger proposal instead and abandoning this one if there was something already in the works - excited to see what you come up with!
Personally I believe we should be either all on Uniswap or SushiSwap, and that going all on SushiSwap would require SUSHI rewards to compensate that there is still more organic volume on Uniswap.
This is the most important piece to me as well. When I see PUNK-ETH, I assumed it was the price floor for a basic punk, rather than the full fund.
Setting a benchmark base floor for PUNKs (and really any notable NFT) feels like a great foundation to get more specialized and specific with over time.
In fact, I’d argue that most users would want to trade the base floor, while more sophisticated investors would want to be very calculated in which high value or genesis item they purchase.
To this end, I fully support a basic PUNK-ETH incentivized pair and would encourage new asset pools to follow the same framework of starting with the floor assets first.
Nice proposal @state.eth