SenpaiSwap: Partnership Proposal

Background

SenpaiSwap is a DEX that intends to own all of its liquidity instead of renting it from its users like other AMMs do thereby pioneering the innovation of DOL or Dex Owned Liquidity. A few weeks ago on December 14th the SenpaiSwap community voted to re-focus Senpai's attention on a new chain from the Boba Network; that chain is Avalanche. 

At 11.3B TVL as of writing Avalanche has much more Total Value Locked than most other chains. Competition amongst DEX's on the chain is fierce with the largest DEX Trader Joe having over 2B in TVL while Pangolin comes in second with a respectable 332M in TVL. 

While planning Senpai's launch on Avalanche, a unique opportunity presented itself that we think is worth bringing to the communities attention; It is a slight pivot from Senpai's original goal but still very much aligned with its DOL aspirations.

The Proposal

Instead of being a DEX that owns its own liquidity, have Senpai be a market maker that focuses on accumulating the liquidity of other DEXs in exchange for SENPAI - meaning instead of selling coupons for Senpais SLP tokens - it would sell coupons for other DEXs LP tokens. 

Trader Joe would be the first official partner of Senpai.

Notes From the Team

Personally we think that this is the right move for several reasons: 

First of all, it will drastically reduce any friction that Senpai will face whenever it launches on a new chain. All of the large chains like Avalanche already have well established DEX's  -  instead of fighting against them we think it is a better idea to forge mutually beneficial relationships. Senpai will help incentivize users to pool more liquidity on their DEXs while they direct their LP providers to Senpai thus bolstering our treasury.

We believe this route will help ensure that the flywheel gets spun in the right direction every time Senpai launches on a new chain. 

In addition, new/upcoming chains usually don't start off with a lot of liquidity (certainly not billions) right of the bat. It is not sustainable for these ecosystems to support multiple DEXs at inception. By working in tandem with DEX's launching on these chains  a drafting effect will be created in which Senpai is pulled forward by their success.

Closing

As always, which direction SenpaiSwap will take is ultimately up to the community; and although we believe this new direction to be in the best interest of SenpaiSwap, the team can not make arbitrary decisions on the protocols behalf. 

Therefore we are suggesting the community vote on the following proposal:

Should SenpaiSwap pivot to this new model in which it becomes a market maker for other DEX's while bolstering its treasury or should Senpai go forward with its original plan of being a DEX that owns its OWN liquidity?

Thanks everyone, Senpai is really looking forward to 2022, whatever path she ends up taking 💜