Liquidity DAO - governor roles and project ideas

Following the announcement of ONE Liquidity DAO, an independent collective that will promote liquidity on the Harmony blockchain primarily by building open source Hummingbot infrastructure, we’ve seen a tremendous outpouring of interest from both the Hummingbot and Harmony communities.

This note aims to outline the roles and responsibilities of the DAO governors, as well as a few ideas for early initiatives that Liquidity DAO might take on.

Governor roles

Liquidity DAO will elect 9 governors who self-assess their performance/compensation and are re-elected every 3 months, so individuals who are organized, self-motivated, and have good communication skills should do well.

Ideally, there are a mix of skillsets and experience levels within the DAO governors, so that there is a balance of experienced individuals who can scope projects and review submissions as well as others who have more time to implement and manage ongoing initiatives.

Since a big aspect will be building Hummingbot connectors and strategies for various Harmony-based DeFi applications, people with experience in project management, technical writing, trading, and engineering are desired. In addition, since a primary mandate is to define a framework for measuring and facilitating liquidity on Harmony, so individuals with academic experience especially with financial markets or blockchain are valuable.

  • Experience as web3 developers (e.g., LinkedIn, Github)
  • Experience as traders and liquidity providers
  • Familiarity with Harmony and its development ecosystem
  • Familiarity using or developing on Hummingbot
  • Links to their open-source contributions or other past work (links, demos, videos)
  • Experience writing technical documentation
  • Experience managing projects and organizing events

Governor candidates should post their applications as a topic on this forum with the Liquidity DAO tag. The deadline for applications is November 29, and elections commence on December 1.

Ideas for early initiatives

The primary role of Liquidity DAO is to organize initiatives that accomplish the key mandates outlined in the official proposal:

  • Promote liquidity on the Harmony blockchain
  • Decentralize liquidity provision for Harmony-based tokens

Liquidity DAO will coordinate bounties, hackathons, and other programs to promote liquidity provider adoption and transaction volume on the Harmony blockchain. The programs will incentivize developers to build Hummingbot connectors and trading bot strategies for DEXs, bridges, and other DeFi applications on Harmony.

Below are a few specific project ideas - note that DAO governors will have independent authority and will decide what to do:

Connectors to Harmony blockchain

Hummingbot’s new Gateway-V2 branch allows developers to add connectors to DEXs on any EVM-compatible chain. Follow the Avalanche and Ethereum examples to add a connector for Harmony.

Connectors for Harmony DEXs

After the Harmony connector is built, connectors can easily be added for Harmony-based AMM-based DEXs like SushiSwap, ViperSwap, and DeFi Kingdoms. This enables Hummingbot users to run the amm-arb strategy to arbitrage between any Harmony based DEX and any other CEX or DEX supported by Hummingbot. Follow the Uniswap (ETH) and Pangolin (AVAX) examples to add connectors for each Harmony DEX.

Publish liquidity metrics

In traditional finance, information about liquidity is extremely opaque, with hedge funds who tightly guard their algorithms, no way for average users to access exchange order books, and a dearth of publicly available liquidity data. Liquiditiy DAO takes the opposite approach: it will conduct research in public to assess how to measure liquidity for the ONE token, publish liquidity metrics about the Harmony blockchain, and open source formerly black-box liquidity provision algorithms. Create a website that measures and reports liquidity on the Harmony blockchain.

Support bridge client functionality

Harmony maintains popular ETH-ONE and BSC-ONE bridges that let users transfer tokens between chains, which relies on validators who confirm transactions by running specialized bridge client software built and maintained by Harmony. Investigate whether this bridge client functionality can be incorporated into a Hummingbot strategy, so that it can leverage Hummingbot’s connector system to scale to different blockchains and so it can be run by a larger number of users in Hummingbot user base for enhanced security.