[DIP-26] Incentivize a DFX/WETH liquidity pool on Arbitrum

Overview:

This proposal outlines a go-forward plan for the bootstrapping of liquidity of DFX tokens in Arbitrum via DFX incentives and how to finance it.

Motivation:

1. To bootstrap DFX liquidity on Arbitrum
2. To increase the overall exposure of DFX to a wider audience.

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Specifications:

75,000 DFX tokens from the Treasury will be used to establish a liquidity reward program for a DFX liquidity pool over a 3-month period.

Implementation

A liquidity pool would have to be created first–on Uniswap, SushiSwap, or Camelot. Open to suggestions. Rewards will be assessed and potentially extended and/or changed by the DAO after the 3-month reward program period.

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Pros:

• Provides an easy way to trade DFX on Arbitrum
• Allows DFX to be distributed to those providing value in the form of liquidity.

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Cons:

• Additional 25000 DFX/month inflation