Bright 🔆 Water💧 Shared Liquidity Proposal 1 of 2

Overview
BrightDAO has the opportunity to participate in the founding creation of the $WATER token which will create shared liquidity across multiple DAOs building in and around the Gnosischain ecosystem.

BrightDAO can contribute $100,000 xdai worth of $BRIGHT tokens to the $WATER pool.
In order to facilitate timely passage of this large sum, the proposal will be broken into two parts of $50,000 xdai worth of $BRIGHT each.

1Hive recently passed the first of it’s two $50k proposals and sent ~332 HNY to the Water Board Gnosis Safe.
The full 1Hive proposal can be reviewed at Water💧 Shared Liquidity Proposal - 🌿 Proposals - 1Hive. This $BRIGHT proposal is basically a copy of that proposal.

Many questions were asked and concerns raised by members of the 1Hive community. At one point a potential Celeste challenge was threatened, but after extensive responses were provided no challenge was made.

Now that the first 1Hive proposal passed, I expect all of the other invited DAOs to begin their own proposal and funding processes. The DAOs being offered for initial inclusion in $WATER are:

  • 1Hive
  • Shapeshift
  • BrightDAO
  • Giveth
  • Panvala
  • Opolis
  • Token Engineering Commons

Token Description:

Water💧($WATER) is a shared liquidity token between projects with aligned interests who are building long term value on Gnosis Chain.

By limiting $WATER to be used only in Liquidity Pools, it can be minted with enough supply to be a meaningful amount of liquidity for many projects, while taking advantage of price correlation to work like an index token for the projects it shares liquidity with.

Token Rationale:

Building significant liquidity on AMM-style decentralized exchanges requires a boat load of tokens. It’s easy for most projects to supply their own token for these pools, but extremely expensive to get other tokens to pair with.

Shared liquidity proposals have shown that there is a better option. 1Hive, Shapeshift, BrightID, and Giveth have all funded shared liquidity proposals giving them affordable and substantial long term liquidity. $WATER can scale the success of these proposals.

Token Launch Timeline:

Gnosis Safe created with members from all participating token projects (Water Liquidity Board).

*Safe will require 5 out of XX signers for transactions described in this proposal.
*Token minting and governance approvals beyond this proposal will require 75% signer agreement.
*Participating DAOs send $100k of their token to the Gnosis Safe
*$WATER token is minted and liquidity pools created.
*Governance Setup (optional): at this point multisig members can choose to create a governance process for adding new DAOs to $WATER liquidity (with 75% approval).

Prenuptial Agreement:

If at any time a participating token project passes a proposal deciding it no longer wants its WATER liquidity (#RageQuit) - its DAO<>WATER LP is removed and the DAO receives back 85% of the tokens it provided for liquidity, or 85% of its total tokens still in its DAO<>WATER LP - whichever is lower (15% penalty).

If at any time the Water Liquidity Board decides it doesn’t want a participating project’s liquidity with WATER anymore (#Excommunicated) - that project receives 100% of its tokens still remaining in its DAO<>WATER LP back.

Participating projects can repeat this proposal to add more liquidity (#ReUp) without needing to approve a new governance process, as long as no new tokens are joining.

Team Information

@UBIpromoter and @Serge will represent BrightDAO on the Water Liquidity Board.
Both of them are members of the M3 multisig that regularly manages important transactions for BrightDAO.

Funding Information

Amount of BRIGHT requested:
$50k WXDAI equivalent. (With another $50k proposal planned.)

Ethereum address where funds shall be transferred:
0xb5f50e42ad28fb4bfc25b6b4c5a34aad30649fc0 - Gnosis Safe with members of the Water Liquidity Board.

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Major progress has been made on the create of the $Water token since BrightDAO passed the 1st of 2 funding proposals. Proposals and Forum posts are up in most of the other DAOs considering joining and community feedback is promising across all so far.

The 2nd funding proposal for BrightDAO is now up.
(Gardens)
It is for $55.858.55 xdai worth of $BRIGHT in order to target $100,000 of total funding.
The value of the 1st funded amount is down to $44,141.45

More information about the $WATER launch plan can be found here:

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