HGP-20 [LD] Create Liquidity pool on Trader Joe (Avalanche)

Category

Liquidity Distribution

Summary

• Create a HBOT-AVAX liquidity pool on [Trader Joe](https://traderjoexyz.com/home](https://traderjoexyz.com/home) to increase the possible ways for the community to acquire HBOT tokens
• Include the HBOT bridged to the Avalanche chain through the Nomad Bridge (as established on HGP-16 to be used for governance voting on Snapshot

Description

With the approval of HGP-16 the bridged HBOT token contract has been created on the Avalanche Blockchain.

As a way to kickoff the token liquidity on the Avalanche C-chain, the Foundation proposes to use funds from the Hummingbot Treasury to create the liquidity on the Avalanche Blockchain on [Trader Joe DEX](https://traderjoexyz.com/home](https://traderjoexyz.com/home).

When the TVL of the pool reaches 2x the size of the Foundation initial deposit, this initial position will be removed from the LP and returned to the Foundation treasury.

Liquidity Pool Creation

Using the existing HBOT-USDC Pool on Uniswap as a reference, the creation of this new liquidity pool will abide by the following rules:

• The Liquidity pool will be created on the Trader Joe DEX;

  • Since the pool is similar to the Uniswap v2 style, both sides of the pool have to be added to the pool;

• The Hummingbot Foundation will add 10k USD value in AVAX tokens from the Foundation Treasury on one side;

• Using the last price of the Uniswap HBOT-USDC Pool at the moment the pool is created as reference, HBOT will be added to the pool to match the

  • Example: If the HBOT price is 0.01 at the moment of the pool creation, 10k USD of AVAX and 1M HBOT tokens will be added to the pool creation;

• The creation of the Liquidity Pool will be executed through the Foundation Avalanche multi-sig wallet

Removal of Liquidity from the pool

Since the goal of the creation of this pool is to kickstart the liquidity on the Avalanche Blockchain, The Hummingbot Foundation will remove the tokens from the LP and return them back to the treasury, once the total liquidity of the pool reaches a total value of 20k USD from other participants.

Milestones

• Bridge 10M HBOT to the Foundation Avalanche multi-sig Wallet
• Move 10k USDC to the Foundation Avalanche Multi-sig wallet
• Use 10k USDC and the matching HBOT amount to create the liquidity pool on Trader Joe
• When the total Liquidity value of the pool reaches 20k USD, Hummingbot Foundation will remove the tokens back to the Foundation Avalanche multi-sig wallet

Treasury Allocation

• 10k USD value of AVAX
• 10k USD value of HBOT, using HBOT-USDC Uniswap pool as reference.