Hi Fei community, warm greetings from Hashflow!
Summary: This proposal would:
- Lend $200K worth of FEI to a Hashflow liquidity pool
- Earn yields in FEI for the protocol
Motivation: Hashflow is a DeFi-native RFQ platform that connects institutional Market Makers (MMs) to traders. It brings a novel approach to DeFi market making and is built to solve the Capital Efficiency problems in AMM. It offers the following benefits:
- zero slippage quotes
- lowest gas among DeFi exchanges
- MEV protection
- tighter spreads
For Liquidity Providers:
- no impermanent loss (yield is generated in the deposited asset)
- high yields
During the Open Alpha stage, Hashflow has been able to sustain up to $135MM in trading over a 24H period, with only $1.5MM in TVL, which represents a 90x Turnover Rate at peak. During quiet periods, Turnover Rate is steadily above 5x.
A DAI-USDC-USDT pool, in particular, showed over $70MM in Trading Volume, with about $600K in TVL, representing over 100x Turnover Rate for a short period of time.
Hashflow’s Open Alpha, and the stablecoin pool in particular, have shown that high Capital Efficiency can be achieved in DeFi. We believe that FEI / USDC can be a great candidate for a pool on Hashflow. It would benefit FEI traders by offering a cheaper and safer way to swap their FEI, and it would benefit the FEI protocol by generating yields without impermanent loss.
$200K is a test amount that can be used to prove the capabilities of a Fei - Hashflow integration.
Specification: 200K FEI will be added as liquidity to a FEI / USDC pool managed by one of the market makers who quote on Hashflow. This will be done by issuing a Hashflow Router Smart Contract call targeting that pool. Once the pool is live, FEI / USDC will be tradeable at app.hashflow.com and FEI yields will be generated for every trade that has FEI as its base (sell) asset.
Similar Smart Contract calls can be issued to withdraw FEI (and yields) from the pool.