Polygon Integration

[chadfi]

Summary:

Deploy GIV to Polygon Network and upgrade GIVeconomy (GIVfarm, GIVstream) to support and reward GIV stakers and QuickSwap/SushiSwap Liquidity Providers.

Proposal Rationale:

In the weeks following the launch of the GIV token, Giveth has seen a tremendous amount of liquidity enter both the Ethereum and xDAI pools:

Note: DEX TVL pertains to listed chain only

With the exception of Balancer’s poor 7-Day Volume, it is easy to see that GIV’s liquidity is healthy and being utilized regularly.

Aside from Curve Finance, SushiSwap and UniSwap are the largest DEX’s by TVL on xDAI and Mainnet, respectively – HoneySwap and Balancer not far behind. On Polygon, QuickSwap has $771M TVL, the highest of any Polygon DEX – more than SushiSwap, UniSwap, and Balancer combined. Tapping into this liquidity would undoubtably augment the GIVeconomy, allowing it to flourish in the blooming Polygon ecosystem. In addition, the extraordinarily low fees on Polygon will expedite onboarding of new GIVers by lowering the barrier to entry.

Finally, Polygon uses a modified version of Tendermint and is able to upgrade to IBC support. This means that Polygon can connect with and become part of the Cosmos ecosystem in the future. Integrating with Polygon now has the potential to place Giveth inside another rapidly growing ecosystem, again multiplying liquidity growth and advancing DAO goals.

As proposed in the “Final GIV Distribution Proposal”, an arbitrage opportunity will be made available in the form of a Polygon native SushiSwap GIV/ETH pool (SushiSwap is the 3rd largest DEX on Polygon after QuickSwap and Curve).

Proposal Description:

Deploy GIV ERC-20 smart contract on Polygon Network, ensuring that the contract can connect to the user’s MetaMask wallet, display the user’s wallet balance, and allows the user to send and receive GIV on the Polygon Network. Number of decimals should be the same as on the Mainnet token contract.

Upgrade the GIVfarm to:

• support Polygon Chain and allow staking GIV via Polygon Chain
• support Polygon QuickSwap GIV/ETH Pool

Allocate 1.5% of the liquidity from the 6.50% “Later Mining” GIVmining/staking allocation to incentivize staking GIV (0.5%) and providing QuickSwap (0.5%) and SushiSwap (0.5%) liquidity.

Update (1/8/2021):
Alternatively, the GIVfarm could be upgraded so that the Mainnet and xDAI staking features for Balancer and SushiSwap (respectively) could accept LP tokens from identical pools on Polygon. For example, a user could provide liquidity to Polygon Balancer GIV/ETH pool then use Wormhole to bridge the LP token to Mainnet and stake in the Polygon GIVfarm. This would allow Giveth to tap into Polygon liquidity without drawing from the “Later Mining” rewards, all while saving users gas fees.

Expected Delivery Date:

Upon each proposal passing, the multisig will aim to integrate with Polygon in 8 weeks.

Team Information:

Contacts: @chadfi

Multi-Sig: Need volunteers!

[chadfi]

One additional note: I submitted a formal request to Cellar Network to support GIV on their cBRIDGE (Mainnet, xDAI, and Polygon).

[mitch]

I think the launch of the GIVeconomy really put eyes on the xDai network which has been severely lacking in unique protocols to create a robust ecosystem.

How does this proposal support greater adoption of the xDai network? Why won’t this only dilute existing liquidity into networks that have similar features?

[chadfi]

I agree that the launch provided xDAI a much needed spotlight and am hopeful it will encourage more teams to build and grow. This proposal is not intended to directly increase adoption of xDAI, but provides an opportunity for that spotlight to burn longer and catch more eyes.

xDAI will get more attention as the Giveth community grows. One way to grow community is to allow the GIVeconomy’s to gain exposure to other, very popular chains. Integrating with Polygon may very well see some existing liquidity move from xDAI or Mainnet to Polygon, but will also bring in brand new liquidity from current Polygon users.

Polygon’s user base is enormous. Polygonscan reported over half a million users in October which is more than even Mainnet. Exposing the GIVeconomy to this amount of liquidity will have a symbiotic growth affect with both the Giveth ecosystem and its homebase, xDAI network.

[Griff]

I don’t think it is worth providing liquidity on Polygon until Polygon is being used for donations on Giveth.io

Allocate 1.5% of the liquidity from the 6.50% “Later Mining” GIVmining/staking allocation to incentivize staking GIV (0.5%) and providing QuickSwap (0.5%) and SushiSwap (0.5%) liquidity.

That is way too much.

I don’t really like the idea of Farming on a chain we are not using… and using 1.5% of our total supply to farm on it (15 million tokens, nearly twice the circulating supply) is overkill even if we were using it.

When I saw Polygon Integration, i got very excited, i would love to see Polygon added as a chain that people can donate on, thats step #1 IMO.

Then, if we were going to incentivize liquidity, we would benefit more by incentivizing a cross chain swapping protocol (staking GIV on Polygon and GIV on xDai) over actual pools on the chain, so that we can take advantage of the liquidity that already exists the other chains… IMO

[chadfi]

I appreciate the feedback, this stance makes sense to me. Who on the team can I work with to understand what it will take to allow donations on Polygon?

[Griff]

OMG!! This is EXACTLY What I wanted to hear! Probably @MoeNick we are working on the next version of the Giveth DApp (we call it the typescript version)… i don’t think it would make it into the first release, but it could be a fast follow and I would LOVE to see a third chain on the DApp

Altho, I would love to see some donors demand the feature as well… no point in adding it if it’s not actually going to help for-good projects make money…

[chadfi]

Right on! Thanks for the insight, this is good to know. I totally agree, DApps with options give a better user experience. Plus bridges are not a very elegant solution IMO, security risk and wrappers can be confusing. If a donor has capital on Polygon, this will make the donation process so much more streamlined and safe.

How have we gathered feedback from donors in the past? May be a long shot but are there any serial donors I could reach out to? Thinking ahead, creating a “Donor Advisory Board” of some top/repeat donors we can meet with periodically could be an excellent way to get consistent feedback. Additionally (or alternatively) if we have a contact list of past donors I could craft a survey to try and infer demand for Polygon without being too leading.