[Governance] Community Fund Proposal for Gravity DeX Prize Budget

Hi, cosmonauts! I want to share another interesting event regarding Gravity DeX.
Tendermint and B-Harvest have been investing effort to prepare an incentivized testnet(a trading competition!) to attract potential users of Gravity DeX on the Cosmos Hub.
Below is the draft governance proposal which will be submitted on 6th April.
Please feel free to comment your opinions!!!


This document is a draft for a community fund governance proposal that asks Atom delegators to allow the spending of 5,000 Atoms for the Gravity DeX Incentivized Testnet (Trading Competition). By voting “Yes”, the voter agrees to send 5,000 Atoms from the community fund to the multisig address which is controlled by multisig committee (see below for members), who will distribute the Atoms to the competition winners.

Abstract

Tendermint team and B-Harvest have been investing efforts to bring the Gravity DeX to the Cosmos Hub to provide Cosmos ecosystem with the most reliable and convenient token exchange utility on the Cosmos Hub.

Currently, the Gravity DeX (Liquidity Module) is in production-ready status and the signal governance proposal to adopt the Gravity DeX on the Cosmos Hub passed thanks to the welcome support of ATOM holders.

At the beginning of March, we proposed an Incentivized Testnet based on the Gravity DEX. The purpose of which is to

  • Test the Gravity DEX under close to market conditions to assure its readiness.
  • Raise Gravity DEX awareness among potential users in an engaging way through a Trading Competition.

This governance proposal is to request 5,000 Atoms to be used for the competition prize fund.

Schedules

Governance Proposal Submission

The community fund governance proposal will be submitted on 6th April. If the minimum deposit amount is raised in the same day, we expect the decision from the Atom delegators to be confirmed on 20th April.

Registration

The registration for Gravity DEX incentivized testnet will be open from 20th April to 30th April.

For registration, the participants will need to provide their:

  1. Testnet address for the trading activities on the testnet, and
  2. Cosmos Hub mainnet address to receive the prize.

A landing page with all the details of the competition, including the sign up form, terms and conditions, prize breakdown and the formulas that will be used to calculate the winners and distribute the prizes, will be provided for all participants before the registration period begins.

Trading Competition

The trading competition starts on 4th May and end on 11th May.

Prize Distribution

The prizes will be distributed before 18th May, unless significant obstacle arises.

Structure

Setups

Initial Token Distribution on Genesis

Initial token distribution for each testnet participant will be composed of 10K of USDC tokens and 10K of three random tokens from the white-listed tokens in the testnet. In addition, each participant will receive small amount of vested Atom tokens to be used for gas fee if they used all Atom tokens for trading of liquidity pool investment.

Restricted Functionalities

Sending and Staking will be disabled in the testnet.

User Flow

User Interface

User access to DEX will be provided via a desktop-based website and uses the Keplr Chrome Extension wallet.

Familiarity with Keplr is a pre-requisite for competition entry.

Economy

Gas Fee

Gas Fee will be set to less than 0.05Atom, to prevent spam attack, but to allow a trading environment with minimal costs.

Price Synchronisation

The profit and loss at the end of the competition will be calculated using prices from Coinmarketcap (formulas that will be used to calculate the winners and distribute the prizes, will be provided for all participants before the registration period begins). Therefore, we think that participants will trade reasonably around the real-time global prices, resulting in soft price synchronization (i.e. because final scoring will be based on global prices, participants will have a tendency to trade the tokens with fair prices near the real-time global prices from Coinmarketcap).

We think it is important to let the users do their own price discovery process, hence we will not intervene in the testnet economy unless an abnormal situation happens.

Economic Intervention

B-Harvest might execute some unexpected economic interventions (such as suddenly executing large swap trades on specific liquidity pools) on the testnet economy to create an interesting trading/investing environment on the competition. The types of interventions will not be announced in advance, for the maximized fun factor of the competition.

Prizes

Minimum Criteria

To become an eligible prize winner, every competition participants should at least:

  • Deposit and withdraw tokens from three different pools into 3 different liquidity pools, and also
  • Execute a swap on 3 different liquidity pools

More tasks and challenges will be announced by the organizing teams before and during the competition as to ensure a complete testing of the Gravity DEX.

Prize pools

  • 1,000 Atoms allocated for bug bounty and economic exploitation bounty. Prizes will be allocated based on an assessment of each report.
  • 4,000 Atoms will be distributed for trading competition winners.

Scoring Methodology

Competition success will be measured based on a combination of activity and a profitability measure. Together these will be used to calculate the final scores, which will be used for prize allocation.

Details will be announced on the registration page.

Prize Distribution

Winner and Prizes

We want to encourage as many potential Gravity DeX users as possible to participate on the testnet so that they can be familiar with the user flow before mainnet adoption. Therefore, we will distribute the prize to the top 1/3 winners selected from the final score calculated.

Prizes will be based on the following formula:

Prize = MinimumPrize * (6 * ScorePercentileRank - 3)

where

  • NOE : Total number of eligible prize winners
  • ScorePercentileRank : The percentile rank of the score of this winner
  • MinimumPrize = 2,000 Atom / NOE : Any prize winner gets at least this amount
  • Example
    • NOE = 200, ScorePercentileRank = 2/3 → Prize = MinimumPrize = 10 Atom
    • NOE = 200, ScorePercentileRank = 1 → Prize = MinimumPrize*3 = 30 Atom

Multisig Committee

The Committee

The multisig committee members will be responsible of receiving the prize funds from the community fund, and distribute the prizes to the competition winners.

Committee members (addresses and pubkeys are to be added soon)

  • Hyung from B-Harvest
    • address : cosmos1yt3p8s3z98z7p5tu4wkddyfdp47l8kutcax4a4
    • pubkey : cosmospub1addwnpepq0jct79vsqx7g892nazd4tkmp3fl0rqy0e244gdmvharvwslnun4qzdl27y
  • Zaki Manian from Iqlusion
    • address : cosmos1lcsjy2d5s33h0sddd8lpuqvwyz5ruz7jsfj43h
    • pubkey : cosmospub1addwnpepqdp68dy9qg2fxdczsmylgujntz3l63v4wmuk8hxptr9c9spzw6m87nztqq6
  • Aurel Iancu from Dokia Capital
    • address : cosmos1j26c4k2jj9tv95whdhva3e8v2fcm4s3dpt77r6
    • pubkey : cosmospub1addwnpepqv0nmdxqs37zw3eynd7k6w8h7fw59ndallugr9v8u4q7yxhhrttwggfcahf
  • Brian Crain from Chorus One
    • address : cosmos1sjtl850e2z2jp24j8w8jcusxyng98d74fc8u7t
    • pubkey : cosmospub1addwnpepq2vwfdhj3uty4xylntm6fc6c3k9kgnm7sn3s9d8lue6qzxg44cl4wytxfaf

Multisig Address

  • Multisig Address
    • address : cosmos1hwq585j32pa7d6pf6gypnnjc6yf4jptv8e8g87
    • pubkey : cosmospub1ytql0csgqvfzd666axrjzql9shu2eqqdusw2486ym2hdkrzn77xqglj4t2smke06xcapl8e82qfzd666axrjzq5cujm09rckf2vflxhh5n343rvtv38hap8rq260len5qyv3tt3l2ufzd666axrjzqcl8k6vppruyarjfxmad5u00ujagtxmmllcsx2c0e2pugd0wxkkusfzd666axrjzq6r5w6g2qs5jvms9pkf73e9xk9rl4ze2ahev0wvzkxtstqzya4k0u82tr7r
5 Likes

so we dont have to use our own money to participate you guys will provide us with the tokens for trading?

whats that?

All economic parameters are laid out, I like it !

With the end of the competition to be on May 11th, that would mean a proposal for the adoption of the liquidity module mid or end of May ?

Support. Very necessary. I wish we will attract as many players as possible to this event with these parameters too.

I remember some people on GoZ missing clearer manuals. A point to improve this time?

Let’s play!

Thanks for a well written proposal draft.

Questions:

  1. May I know if we are limited to trading pairs from the Cosmos Network or we can use trading pairs outside of this network?

  2. After this incentivized trading testnet, would you give us a report or metrics to show how much is being used and what more can we improve. Also an estimation on the traffic if say, participants are 3x more than the trading testnet.

I am more fond of how this incentivized testnet can solidify the battle ready of the Liquidity Module.

  1. no need of own tokens. Registered participants will receive testnet tokens

  2. it is same as cosmos hub address. Participants can either submit same cosmos hub address for both testnet usage and mainnet prize recipient address, or submit same address for both.

1 Like

Yes. Mid-late May is the expectation.

Yes! We are preparing both documents and video contents to learn how to use Keplr and the incentivized testnet UI.

It will be fairly simple as Uniswap&Metamask, so we expect minimal problems on understanding the process

  1. There will be Cosmos ecosystem tokens and tokens from Ethereum network, because those two types of tokens will be available to be traded on Cosmos Hub very soon.

  2. Yes! One of the main purpose of the testnet is to have a good testbed of Gravity DeX to analyze, stress-test, and improve the existing Gravity DeX design and codebase. Definitely the research paper will be published after the event.

gas fee token changed from USDC to Atom, accepting the suggestion from the community

1 Like

I would love a little more clarification on the prize distribution. I seem to not be understanding it, as 5k is being requested, but only 2k is made clear how it is actually distributed. The 1k bounty is kinda up in the air, and the 2k remainder as well.

Competition winners get 4000 atoms.

Bug bounty and exploitation winners are difficult to predefine the prize because it depends on the quality of finding.

1 Like