PIP-05: Lend Funds to Provide Liquidity Provisioning from Community Treasury

🏛️ Governance Discussions
1

Title

Lend Funds to Provide Liquidity Provisioning from Community Treasury

Link to Draft Proposal

(from Governance Proposal Phase)

Background

Since the launch of $PUSH token, we have seen the community grow and now we have almost 4,000 token holders in our community. This proposal aims to further help grow our ecosystem of investors & traders and to stabilize the $PUSH token market with liquidity.

Proposal Description

Making sure the liquidity of $PUSH is stable across all exchanges is very important to grow the $PUSH community. A highly volatile and illiquid token could drive away potential users. Hence, we propose to onboard Jump Crypto as one of our liquidity providers and to lend them 3% of $PUSH from our community treasury which now has ~40 Million $PUSH solely allocated for the growth of the ecosystem.

About Jump Crypto

Jump Crypto is the crypto arm within Jump Trading Group, which is one of the largest trading firms in the world. The crypto arm has been operating for the past six years and has become core builders, partners, and traders working towards the next frontier in crypto infrastructure. Jump has supported nascent and mature crypto projects alike, growing their networks and communities through liquidity provision. Recently, Jump was behind the $320M USD ‘patch’ of the Wormhole exploit.

More on Jump Crypto here: https://jumpcrypto.com/introducing-jump-crypto/

Expanding the Relationship with Jump Crypto

Jump are the lead investors in the most recent fundraising round for $PUSH and would like to expand their support for the EPNS project by providing liquidity in the $PUSH token on exchanges. As part of this partnership, Jump will borrow $PUSH tokens as inventory to provide liquidity on existing exchange venues as well as future exchange listings.

Benefits of onboarding JumpCrypto

  • improve the token liquidity on exchanges
  • support listing on additional exchange venues

Post onboarding, the performance of the liquidity provider would be reviewed as per the agreement conditions that would be accepted by both parties internally.

Conclusion

If the feedback from the community is affirmative, this proposal would be promoted for formal voting on Snapshot. If ratified, a legal agreement would be signed by the two parties.

10 Likes
3

As mentioned before during the proposal phase, Jump Crypto is more than helping with stabilizing $PUSH liquidity. They bring engineering knowledge and proven track record in the finance and digital assets sector.

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Question: how does EPNS benefit from deeper liquidity?

The main priority should not be token price but developer onboarding. EPNS is a developer/user tool. The $PUSH token is secondary to that.

If liquidity is desired for some reason, why not LP on a DEX and let the arbitrageurs take care of the rest?

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This will help in improving the token liquidity on exchanges!

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That does not answer the question: how does this help EPNS?

EPNS is the Ethereum Push Notification Service, not the Everyone Purchases Non-Securities.

The goal of EPNS is to become the de-facto push notification service for the web3 ecosystem. Token liquidity does nothing for that.

7

Agreed on the part of prioritizing developer on boarding, which is also happening in parallel with primary focus more hackathons, improvement of dev tooling, docs, etc…

Though to highlight developer perspective vis a viz the proposal: one of the important things that can happen with PUSH having deeper liquidity or support for listing on additional exchange is stabilization and less volatility which will incentivize more developers to apply for PUSH grants and other initiatives to build on top of EPNS.

Also, good suggestion on LP front via dex, though in the interest of staying true to the discussion of the proposal (Jump for Liquidity Provisions), we can probably talk more on that front either in general or via another proposal.

8

This is such a great proposal
you love to see this!

9

More exchanges will not decrease volatility, until a project is very mature and stable the price will be a speculative party. And even then…

I have never heard a dev see this as an issue. And if the issue is stability for grants, make the grants denominated in Dai. Much cleaner solution.

I see zero ecosystem advantage in lending a very specific exchange tokens to they can LP. Close to 0 actually.

What it does do however is signal to the world that the EPNS team cares about onboarding exchanges more than developers, which is exactly the impression I got before meeting the team at Devconnect.

From all outward appearances EPNS is an organisation that cares about DEFI and token giveaways. If we want to attract serious developers, that needs to be rectified immediately. Starting with not giving proposals like these the light of day.

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Why. I would love to hear your reasoning. I’m open to changing my mind, but I do not see why this adds to the EPNS ecosystem in any way.

It’s like a startup trying to generate liquidity before finding product-market fit.

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All,
After meeting all criteria, this proposal has been promoted to Snapshot for formal voting.
Having people both for and against, we urge you all to exercise your voting.

https://snapshot.org/#/epns.eth/proposal/0xe7b4ac3c09f15322044e3b8086fa03d5453086506a436bd94b31b36c660762e0

Thanks,

1 Like
12

PIP-05 is passed Snapshot

Setting up the agreement and moving funds in progress