Proposal to charge a fee on the single-sided liquidity providing feature within the XDEFI Wallet Web Application.

Proposal Executive Summary

This proposal is for XDEFI Wallet to charge a 0.25% fee when users enter and exit liquidity pools (and also whenever users add or withdraw any liquidity from those pools) via the XDEFI Wallet Web Application. A large proportion of these fees should then be used to periodically purchase $XDEFI tokens on the open market, that can then be distributed to stakers in the form of rewards (similar to what XDEFI Wallet currently does with the swap fees that it generates).

If you are in favour of this proposal, you can vote by following the instructions here: https://www.xdefi.io/article/proposal-vote/

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Proposal Details

XDEFI has integrated the solution built by Portals.fi to make it quick and easy for its users to provide liquidity to (or remove liquidity from) any EVM pool with a single asset by using the "Invest" tab/feature within the XDEFI Web Application.

(NB XDEFI Wallet's "Invest" tab also provides tools for users to easily monitor and track their assets and investments.)

In order to provide liquidity to a pool, you typically need to deposit a pair of tokens. If you only hold one of the tokens then first you would need to buy the second token (or trade something for the second token), before you can proceed to stake both tokens. So there are a few steps involved here which can be quite confusing and time consuming for anyone new to DeFi.

XDEFI Wallet allows its users to do all of this seamlessly thanks to this integration with Portals.fi. Users can enter and exit liquidity pools in one click (with any necessary exchanges taking place in the background). This allows users to quickly and easily navigate various liquidity pools that exist on platforms such as Uniswap, Curve Finance, Balancer and more.

This feature is currently available on XDEFI Wallet's Web Application and this proposal is for XDEFI Wallet to charge a 0.25% fee whenever users use this feature to (1) enter & exit these liquidity pools and (2) add or withdraw any liquidity from these liquidity pools.

This proposal is for XDEFI to periodically convert a large proportion of these fees to $XDEFI tokens (which will be acquired on the open market) and to then redistribute these $XDEFI tokens to stakers (vXDEFI holders) in the form of rewards (similar to what XDEFI Wallet currently does with the swap fees that it generates).

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Proposal Justification

XDEFI Wallet currently charges fees on its "Swap" feature and a large proportion of these fees are used to periodically acquire $XDEFI tokens (on the open market) that are then redistributed to stakers in the form of rewards.

This proposal is for XDEFI Wallet to also charge a fee on the single-sided liquidity providing feature within XDEFI Wallet’s Web Application and to then use a large proportion of those fees to periodically acquire $XDEFI tokens (on the open market) that can then be redistributed to stakers in the form of rewards.

The more fees that are collected, the greater the potential rewards for $XDEFI stakers and the greater the demand on the $XDEFI token which should benefit the XDEFI Community.

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Key Dates

• 26 April 2023: Proposal to be submitted and the 7 day voting period begins.
• 3 May 2023: Voting period for the proposal concludes (and, if passed, the proposal will then be passed to XDEFI to approve and implement).
• 31 May 2023: If passed then the proposal should be implemented (and so the fee charged) by this date.