Proposal: Bootstrap Wormhole UST Liquidity on Polygon

Governance & Proposals
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Introduction:

Greenhouse is a new decentralized exchange on Polygon that builds and drives liquidity for layer-one blockchains,bridges, existing and emerging projects. Greenhouse offers the lowest trading fees on Polygon (0.18%), attractive yield farming incentives ($20%+ on stablecoins, 100%+ on other tokens) and gamified staking products (burn to earn).

Greenhouse tokenomics are unique in that all DEX fees are utilized to buy-back and burn the GREEN token, meaning that the DEX has a value capture mechanism directly related to usage of the protocol. No trading fees are diverted to liquidity providers, meaning that the value stays within the ecosystem and becomes “stickier”. Instead, liquidity providers earn rewards via the net zero emission rewards strategy obtained from our yield farms.

Greenhouse is backed by reputable venture funds and angel investors, and is a recipient of grants from Polygon and Harmony. The farming, staking, and router/factory contracts are derived from Sushiswap and DinoSwap, with previous versions audited by Certik, and current versions (materially similar) undergoing audits by a second audit firm to be completed and published this week.

Greenhouse is a UST preferred DEX on Polygon that is already incentivizing many Wormhole UST pairs and will be expanding these incentives further as we further expand on Polygon and beyond.

Problems:

  • UST Liquidity on Polygon is low because there are no UST preferred decentralized exchanges on the network and no incentive programs to boost usage.
  • Wrapped UST and Wormhole UST both exist and are both utilized on other exchanges, leading to confusion for users and creating roadblocks for exponential growth.
  • Current DEX options on Polygon are primarily concentrated on Quickswap, Uniswap V3 and Sushiswap. These are large projects and not nimble.

Solutions:

  • UST Liquidity on Polygon will be enhanced greatly by a targeted liquidity mining program with an emerging DEX able to prioritize ease of use for the Terra ecosystem and vicarious through future deployment, wherever Greenhouse deploys.
  • Wormhole UST will be highlighted and Polygon users will have clarity on the preferred version of UST, eliminating confusion and removing a significant hurdle for adoption.
  • By partnering with a smaller DEX with cross-chain aspirations, Greenhouse can prioritize UST as we move cross-chain and establish UST as the preferred stablecoin of choice for new networks.

Prior to the launch of Greenhouse a couple weeks ago, there was ~$4M+ wormhole UST liquidity on Polygon. This figure is now ~$7M. While not suggesting cause/effect here, we believe the market is very much demanding more UST liquidity on Polygon. In the big picture, ~$7M is not nearly enough for a network the size of Polygon.

Additionally, Greenhouse will be expanding very soon to two additional blockchains. One of these chains is a brand new network with Greenhouse as a first mover DEX on the chain. Bringing UST to additional new blockchains as they launch their first projects will be important to establishing UST as the preferred stablecoin not just on Greenhouse, but also on these networks.

Proposal:

Greenhouse is seeking 500,000 UST, to be utilized for liquidity mining initiatives for building UST presence on Polygon for the next 5 months. These rewards would be issued via a staking pool, where users can utilize the GREEN token rewards earned from providing liquidity to UST pairs, to also earn UST rewards.

Greenhouse has already begun incentivizing these UST pools with our native token GREEN, but requires additional support to sustain these initiatives for longer periods of time. Currently, we have $3M TVL in the first 2 weeks post launch and over 66% of this is in UST denominated liquidity pools. Additionally, Greenhouse has several partnerships lined up for liquidity mining initiatives on our DEX and for those trading pairs, as well as future trading pairs, we always recommend UST to our community partners.

With Greenhouse as a UST preferred DEX, UST can flow onto Polygon using a non-inflationary sustainable DEX that is willing to provide rewards for a stable coin that is not yet native to Polygon.

Increasing TVL in a sustainable way takes time. Providing rewards in UST will increase the speed at which UST is adopted and increase the overall volume of UST traded on Polygon. This will lead to increased minting of UST, additional bridging to other blockchains, and drive further value for the Terra ecosystem.

Terra Multisig: terra1fteewte997qslglxu07a7fmj6vq5j5n65ee25p

Signers: Lotus, Keeper, Woodman as 3 Core Contributors

Signer Addresses
terra1dza8ukquw5hshtl5lt0kpze95fxpl76nhh34uv
terra1xlkaxnuqyh359esfjmugd3kfl58zsfdghafz5n
terra155pze4jc7adx5g9mdy0lj29tstxuy9ye2vls7j

3 Likes
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This is a great idea. Expanding the popularity of UST on Polygon can be great for both Polygon and Terra as both ecosystems grow. I totally support this method of proliferating wormhole UST

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Great. The more UST there is and available on other chains, the better the LUNA ecosystem.

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Totally in support of this. For UST to become the standard stablecoin within the web3 world, it starts with expanding across chains and protocols. Let’s go!

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Yes!! This is actually really cool I would like to see this expand to Polygon or other chains huge growth potential imo!!!

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Thanks for the proposal, @Lotus_Greenhouse . Will Greenhouse consider making wormhole UST the default stablecoin for the DEX?

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TFL BD team is in support of this proposal and the incentives planned. Happy to support a UST preferred DEX!

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Hey, I love the idea and thought behind a UST preferred DEX on Polygon.

I just have a few issues. You’re asking for 500k UST. This is equivalent to more than a fifth of your current liquidity.

Liquidity since launch is down from $3.75m to $2.47m, a drop of ~35%.

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Trading volume is also not looking great. It’s sitting 22.5k. That’s pretty small. It peaked at $350k, but even then, still small in the grand scheme of things.

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I don’t mean to be harsh, but I feel it may be too early to ask for a Terra community grant. Right now it seems like there is a lack of demand for your DEX.

4 Likes
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Interesting - seem to be split perspectives on this.

Harry - I acknowledge the merit in your opinions and data-based research.

While Terra welcomes the development of new DEX’s and use of UST across networks, community pool spend must be justified by the added benefit it will add to the network.

In this case, it is difficult seeing such.

Now to @zon’s point. This is a protocol that puts UST first - and is painfully obvious while navigating through their DEX. It seems young, with the opportunity to grow and build volume.

UST boasts the greatest liquidity on the protocol and is the 2nd most traded token by volume.

@lotus_greenhouse do you have data you can share with us on user count and behavior?

FYI, some similar proposals for context:

OpenOcean (CEX+DEX trading comp) - 20k
ZigZag Exchange (zkSync DEX) - 15MM
Excalibur (FTM DEX) - 255k

All three of which have passed.

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Yes this is the intention. The DEX will prioritize UST as the default stablecoin on every chain we expand to. Reminder that a DEX is permissionless by nature, so there is nothing stopping users from setting up USDC, USDT, etc pairs, however, the liquidity and routing is setup for optimizing the UST depth given the incentives proposed here.

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Hi @Harry.UST ,

Thank you for your thoughts and feedback. I, of course, agree and acknowledge that the DEX is in its early stages of growth and we are focused on increasing the demand for the DEX; however, every project has to start somewhere. And the only way to create a UST preferred DEX is to start early. It would be quite difficult and take substantially more capital to convert the 3 larger players on Polygon to UST preferred DEX (Quickswap, Uniswap v3 or Sushiswap).

Two important components that drive usage of a DEX are the depth of the liquidity pools and the trading fees. Our trading fees are lower than any major DEX on polygon by a substantial margin (0.18% vs. 0.30%), so we have that piece covered. The other piece is depth of the liquidity pools, which we are trying to address in a sustainable manner though our request for 500,000 UST. We could very easily create a hyper-inflationary emissions schedule with unsustainable yields and drive huge TVL and volume. We know this because we have done this before and have learned from this mistake. We achieved ~$600M TVL in less than a month and the token performed great…for a very short period of time before inflation began to outpace demand and the token went into a death spiral. This is why we have shifted the focus to a more disciplined and sustainable tokenomics model, which relies on programs like this one to help bootstrap the initial liquidity and create a positive feedback loop instead of the typical chart you find for yield farms.

Also, Polygon is just the beginning. As mentioned, we will be the primary DEX on a new chain that we believe could become very successful, plus have grant approved (but unannounced) from a third chain.

To your point about liquidity dropping from launch, the market has been volatile. This explains much of the reason for the liquidity drop off, not simply liquidity being withdrawn from the DEX.

1 Like
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Hi @fig

Thanks for the comments. Please feel free to check out our analytics page here: https://analytics.greenhousedex.com/

I think the datapoints right now are very noisy as the dex is new and we’re ramping up some awareness campaigns. Userbase still relatively small, but we believe that expanding our partnership with Terra will not only help financially, but bring organic awareness to the protocol as well. As I mentioned in a previous response to Harry, we are avoiding the articificial/unsustanaibly high yield traps that many yield farms/dex fall into. As such we are take a longer term view here (for better or worse) and trying to spread UST adoption as much as possible.

Not the best answer to your question, but take a look at our analytics. @Lotus_Green on TG for those looking for more realtime discussion.

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Hi all,

This is an “interesting” proposal. I just want to highlight that this exchange GREENHOUSE on Polygon was recently re-named, previously being named DINOSWAP. I don’t want to bring all the negativity here, but the team behind DINOSWAP just treated their community NOT FAIRLY and in my opinion they don’t deserve the trust they are asking for.

What are the guarantees that 500K UST they are asking for aren’t going to be wasted and not having a real impact? This is a huge amount!!

Just go to their telegram and twitter to see how they treated their community!

I’m sorry guys but DINOSWAP was just another disappointing DEFI project where the only ones benefitting from it was the core team! DEFI shall not be about this and this behavior must not encouraged.

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Harry, Fig,

What they aren’t telling us is that this isn’t a NEW project. This is just a rebranding of DINOSWAP.
Why they aren’t telling this? It’s clear to me that they aren’t acting honestly. Please just go to their telegram or twitter and check people’s reactions regarding Dinoswap.

Of course, I’m biased when I’m writing this because I was a supporter of Dinoswap. I’ve believed in what they promised then. Shall I believe they are acting honestly now? NO.

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Hi @dasyn7

I will attempt to address the “questions” you present here:

I can only assume your issue is with the DINO token performance since you didn’t give any concrete examples and have just made baseless claims, so I will speak to that. The DINO token did not perform well, this is true. This is also true of many other defi/dex/yield farm tokens; especially those that only have governance features, or those that are yield farm reward tokens. I can list examples if you want, but feel free to scroll through these tokens on coingecko and DYOR. The point is that most projects, even bluechips, were not immune. Besides the macro issues, our issues were primarily that emissions were too high and there was significant value leakage from the ecosystem due to the tokenomics. Once this was identified, rather than take the scumbag approach of abandoning the project, we took a proactive and positive approach to attempt to fix these issues, which required a new token/protocol, with a new vision…this token is now available to all holders of the DINO token should they want to convert their DINO to GREEN.

We determined there was a demand for UST on Polygon and felt we could bring value to both ecosystems by creating a UST preferred DEX on Polygon with some tokenomics differences. Feel free to reference our docs or join the telegram if you have questions.

Question: What are the guarantees that 500K UST they are asking for aren’t going to be wasted and not having a real impact?

Answer: 100% of these funds will be given back to the community and utilized to incentivize our UST preferred DEX. This is blockchain. You can verify this yourself. Our multisig was posted and we will commit to posting the transactions showing where that money goes and how it gets distributed.

The core team did not benefit like you state. In fact retail users/early farmers were the primary beneficiaries of the launch. The team and presale investors received 0% at TGE. While the token price went up astronomically right away, the team was on a vesting schedule (as were our presale investors). So this was actually quite different than the picture you are painting. The team/presale investors were dumped on by retail.

You seem to be misunderstanding alot of the facts here, so please feel free to join our telegram or DM me to discuss further. I’ve put myself out here on behalf of the team to attempt to build something positive to contribute to both Polygon and Terra ecosystems. For the record, there is no “dasyn7” in our telegram channels. Feel free to post your username here so we can chat further on telegram.

Lastly, your last line says it best…you seem to have some sort of bias or vendetta (obviously). I (and others) should disregard everything you say based on that line alone, but I am choosing to respond to you in hopes that others might not just take what you say on the surface and assume it to be fact. I’ve always taken time to respond to everyone directly (in public group and DM) regardless of their questions/issues, and that won’t change.

2 Likes
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Dasyn,

This is obvious to anyone who has read our twitter, come to our telegram, visited our website, read our docs or done any semblance of their own research. What is so clear to you that we aren’t acting honestly? Why don’t you ask questions or present specifics instead of just spewing nonsense? I am happy to answer any questions you have or address specific issues, but it is clear you are masquerading as some sort of pretend superhero of the Terra ecosystem (Joined 9 hours ago just to make this post).

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Excellent idea!

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Happy this was approved. Cheers.