Beamswap: Tranche 2 Ecosystem Grant Draft Proposal

Governance Grant Proposals
1

  • Title - Beamswap: Tranche 2 Ecosystem Grant Draft Proposal

  • Author - Beamswap Team

  • TLDR -

    • Primary Goal-

      • Maintain and Grow Activity (active users, transactions, TVL)

    • Project Description - Beamswap is Moonbeam-based DeFi hub powered by standard, stable & CL AMM , providing liquidity for peer-to-peer transactions, as well as the only active perpetual exchange on Polkadot.

  • Requested GLMR Grant Amount - 2,000,000 GLMR

  • Use of Grant - 400,000 GLMR will be used to increase market liquidity for Beamex, a decentralized perpetual exchange, and 1,600,000 GLMR for Beamswap v3 concentrated liquidity AMM, leading to a stronger influx of active users to the Moonbeam network and their long-term retention.

  • Motivation for Grant Amount- Following the vision of becoming a fully user-powered DEX, the funding of Beamswap and Beamex would, therefore, beneficially impact the acquisition of new users on the Moonbeam Network, further increasing its relevance compared to other networks.

  • Updates

  1. Beamswap V3 Liquidity Building was delayed for 2 months (from April to June). Please share the latest on Tranche 1, including
  • how much rewards Beamswap has left and
  • when the incentives are supposed to end.
  1. V3 Rewards will end on the 8th of September. We have around 390,000 GLMR left.
  1. The strategy on Tranche 1 was to use 500,000 GLMR’s for V3 within 1 month. Now the strategy is to use 1,600,000 GLMR’s within 3 months. Could you please detail the rationale behind this rate of ~500,000 GLMR per month? Is Tranche 1 actually being used at this rate?
  1. It is based on the duration of the Tranche to maximize our ability to attract meaningful liquidity along with other grant participants for the best effect on the network. Tranche 1 is not being used at this rate because we received a smaller amount than requested and we had to adapt.
  1. Have you considered a slower burn rate to extend the rewards for 6 to 9 months?
  1. Yes, we have. If we receive the full requested amount, we are considering extending the rewards from a 3 to a 6-month period.
  1. After the 3rd month, how do you plan to keep up with other DEX’s that will be offering incentives for similar pools, but with a longer period?
  1. If we will not generate sufficient trading volume and thus fees, it will be hard to retain the mercenary liquidity that just chases the best returns available. We will focus on our other features to attract & educate new users.
  1. Please inform how your numbers (daily allocation to pools; kpis; etc) will be affected if you receive lower amounts:
  • (a) 1.5M GLMRs and
  • (b) 1M GLMRs.
  • Please also explains how will the grant be distributed between V3 and Beamex for these scenarios.
  1. We have prepared a Google sheet that you can copy and change the GLMR Amount to get an estimation of what effect a reduced amount of GLMR would have on our incentives. Beamswap Grant proposal - Google Sheets
  • Project Overview and Relevant KPIs - The Beamswap DeFi Hub is among the five leading players in the Moonbeam DeFi arena, according to:

Web3Go Moonbeam Analytics
DappRadar
Moonbeam Subscan

Beamswap has continuously hit the charts and was listed among/as:

  • Top 3 dapps by dapp transactions
  • Top 5 dapps by dapp active addresses
  • Top 3 dapps by number of unique active wallets
  • 11,700 holders of the native $GLINT Token on the Moonbeam network.
  • 1st Perpetual exchange on Polkadot

In a year and a half since its launch, the Beamswap team has delivered numerous new products and solutions. Most recently, we have launched Beamswap V3 Concentrated Liquidity and Beamex, the first Perpetual Exchange on Polkadot Network.

Beamswap’s concentrated liquidity AMM currently has a TVL of $450,000, complimented by Beamex’s $250,000.

  • Team Experience -The Beamswap team represents a tight-knit international group of 15+ members, crypto veterans with a strong background and years of experience in Web3 development, DeFi and TradFi, and strategic marketing, working tirelessly to deliver outstanding service, scout new partnership opportunities, and contribute to the evolution of the ecosystem.
    Most team members have public names on their social profiles and wish not to be named in the present grant. The Moonbeam Foundation is acquainted with all the key team members and has met several of them at past crypto conferences, the most recent being Consensus.

  • Timeline and Milestones for Use of Grant - With the successful launch of Beamex, the first perpetual exchange on Moonbeam, and Beamswap’s concentrated liquidity v3, the team has generated a solid amount of base liquidity on both platforms.

100% of the GLMR incentives acquired from the present grant would be channeled back to network users, mainly to provide extra rewards for liquidity providers on Beamswap and perpetual traders on Beamex.

TVL and APY estimates

Token prices used for calculations:

  • GLMR = USD 0.26
  • GLINT = USD 0.00085

Data for prices taken on 2nd of July 2023.

Beamswap V3 Concentrated liquidity: 1,600,000 GLMR

Tranche - Aug to Oct (2)
Tranche - Aug to Oct (2)1920Ă—1080 147 KB

Beamex Perpetuals: 400,000 GLMR

Perpetuals
Perpetuals1920Ă—1080 142 KB

We plan to track 4 key metrics:

  • Beamswap v3 TVL
  • Beamswap Monthly volume
  • Beamswap 30d transactions
  • Beamex BLP TVL

With rewards being flat and people already familiar with both products, we propose a 10% monthly increase for all the goals. The source for data is publicly available here:

Source of Beamswap TVL and Volume Data: Dashboard | Beamswap Analytics

Source of Beamex TVL: Beamex

Source of Transaction Data: Analytix

The proposed data is based on the full 2,000,000 GLMR reception.

KPIs_
KPIs_1920Ă—1080 135 KB

  • Vision Of Success - Beamswap’s vision is to establish a base amount of liquidity on the Moonbeam network, enabling institutional and retail users to execute their strategies with lower fees & slippage and higher efficiency.

  • Rationale - Beamswap has launched 2 new products - concentrated liquidity AMM and perpetual DEX. Compared to a standard AMM, these enhance transactional efficiency while lowering operating costs. However, their operation requires a higher percentage of liquidity, as seen with concentrated liquidity and perpetual solutions on other networks.
    By bringing new users to the Beamswap platform and familiarizing them with the network’s benefits, the Moonbeam ecosystem would get a significant boost in daily volume and liquidity, further solidifying its relevance as the go-to network for builders, users, and service providers.

  • Steps to Implement - If the proposal successfully passes, Beamswap will deploy liquidity incentives based on the timeline outlined above.

5 Likes
2

hey DexOperator, Thank You for your proposal!

First of all, congratulations on the long-awaited launch of Beamex, a remarkable milestone!

I would like to ask you a few questions:

  1. Could you please clarify whether your plans include additional opportunities to interact with XC-20s assets from other parachains? In other words, do you aspire to become a hub where users can interact with a diverse range of DotSama assets on Beamswap & Beamex?

  2. What security measures have you implemented to ensure the safety of funds for BEAMEX users?

  3. If the grant amount you receive turns out to be less than 2M, how would this impact your plans and strategy going forward?

  4. Have you considered the possibility of extending the liquidity incentives for a longer duration, such as 9 or 12 months? How do you believe this longer incentive period might impact Beamswap’s ability to achieve its goals?

2 Likes
3

This was also my main question

2 Likes
4

Hello Beamswap team. First, congratulations on Beamex and Beamswap V3! I’m so excited for having a top-notch perps platform on Moonbeam. I have a few notes and questions below:

  1. Beamswap V3 Liquidity Building was delayed for 2 months (from April to June). Please share the latest on Tranche 1, including

    • how much rewards Beamswap has left and
    • when the incentives are supposed to end.

  2. The strategy on Tranche 1 was to use 500,000 GLMR’s for V3 within 1 month. Now the strategy is to use 1,600,000 GLMR’s within 3 months. Could you please detail the rationale behind this rate of ~500,000 GLMR per month? Is Tranche 1 actually being used at this rate?

  3. Have you considered a slower burn rate to extend the rewards for 6 to 9 months?

  4. After the 3rd month, how do you plan to keep up with other DEX’s that will be offering incentives for similar pools, but with a longer period?

  5. Please inform how your numbers (daily allocation to pools; kpis; etc) will be affected if you receive lower amounts:

    • (a) 1.5M GLMRs and
    • (b) 1M GLMRs.
    • Please also explains how will the grant be distributed between V3 and Beamex for these scenarios.

Please note that you have until July 14th, 11:59 PM UTC to make changes to your proposal. A list of changes based on community feedback should be added to the “Updates’’ section of the proposal and any changes should be reflected in the text of the proposal itself

2 Likes
5

Hello Beamswap,

congrats on the Beamex and Beamswap v3 launch.

  1. Can you provide us more details around Beamex numbers to date?
  2. With Uniswap coming to Moonbeam, how does this this affect your work?
  3. StellaSwap has presented OffChain Rewarder solution, are you working on something similar?
  4. Due to delays and for community transparency, could you confirm that whole amount of previous grant is used for liquidity incentives on the platform?
  5. What is your business model without Moonbeam Grant system?

Thanks.

6

Hey @turrizt, thank you for your kind words.

  1. Could you please clarify whether your plans include additional opportunities to interact with XC-20s assets from other parachains? In other words, do you aspire to become a hub where users can interact with a diverse range of DotSama assets on Beamswap & Beamex?
  1. Yes, we are always looking out for opportunities to integrate & support more XC-20 assets from other parachains. The first step is adding them to the Beamswap DEX, and later if they pass our risk parameters, they can potentially be added to Beamex as well.
  1. What security measures have you implemented to ensure the safety of funds for BEAMEX users?
  1. Beamex smart contracts were audited by Peckshield. The report can be found here: https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-BeamEx-v1.0.pdf . As a decentralized exchange, we do not control user funds. We use permisionless contracts, a secure web hosting provider and employ multisig & timelock protections. We also have protection in place against asset price manipulation by using a price oracle.
  1. If the grant amount you receive turns out to be less than 2M, how would this impact your plans and strategy going forward?
  1. Providing an accurate answer without knowing the exact amount is challenging. If the number is lower than 1.5 M GLMR, it might not be sufficient to incentivize liquidity effectively on both Beamex and V3 simultaneously. In such a case, we would need to prioritize focusing on one of them. It also depends on GLMR price changes and the cost of attracting liquidity changing.
  1. Have you considered the possibility of extending the liquidity incentives for a longer duration, such as 9 or 12 months? How do you believe this longer incentive period might impact Beamswap’s ability to achieve its goals?
  1. We have considered extending the liquidity incentives to a 6 month period for our concentrated liquidity AMM if we receive the full requested amount (2 M GLMR). The longer the period, the better, but there is a minimum amount of liquidity that we need to be able to attract in order to ensure a seamless trading experience for our users.
3 Likes
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Hey @thiago.go , thank you for your feedback.

  1. V3 Rewards will end on the 8th of September. We have around 390,000 GLMR left.

  2. It is based on the duration of the Tranche to maximize our ability to attract meaningful liquidity along with other grant participants for the best effect on the network. Tranche 1 is not being used at this rate because we received a smaller amount than requested and we had to adapt.

  3. Yes, we have. If we receive the full requested amount, we are considering extending the rewards from a 3 to a 6-month period.

  4. If we will not generate sufficient trading volume and thus fees, it will be hard to retain the mercenary liquidity that just chases the best returns available. We will focus on our other features to attract & educate new users.

  5. We have prepared a Google sheet that you can copy and change the GLMR Amount to get an estimation of what effect a reduced amount of GLMR would have on our incentives. Beamswap Grant proposal - Google Sheets

3 Likes
8

Thank you! Could you please add these answers to the “Updates” section in your proposal?

1 Like
9

Yes, of course! Updated.

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