Create V2 Pool for BONZO/xBONZO 0.15%

Request for Comment
1
  • Title: Create V2 Pool for BONZO/xBONZO 0.15%
    Author(s) : Bonzo Finance and Amplifi Liquidity
    SaucerSwap Voting Interface : N/A
    Related Discussions : N/A
    Submission Date : March 5, 2025

Summary:

  • We propose the creation of a V2 BONZO/xBONZO pool with a 0.15% fee tier on SaucerSwap. The objective of this pool is to increase liquidity for the upcoming xBONZO single-sided staking token which, in turn, should create a healthier market for users participating in BONZO Staking.

Abstract:

  • The creation of a V2 BONZO/xBONZO pool should increase the amount of liquidity in BONZO related pairs, while minimizing price impact users would otherwise incur when swapping in and out of xBONZO if it were established as a v1 pool. Additionally, establishing a v2 pool for BONZO/xBONZO offers users an alternative and efficient route for swapping in/out of both BONZO or xBONZO.

Motivation:

  • With the creation of this V2 pool we aim to attract more liquidity into the Hedera DeFi ecosystem, optimize trading efficiencies, and create alternative and efficient routes for users to swap in/out of both BONZO and/or xBONZO.

Benefits (Pros):

  • Price Supportive: It can help stabilize token prices.
  • Capital Efficient: Concentrated liquidity pools are more efficient in capital deployment.
  • Yield Opportunities: Increase yield opportunities for liquidity providers.
  • Minimal Slippage: Concentrated pools help to ensure minimal slippage and tighter spreads.

Downside (Cons):

  • Risks: Smart contract risk, increased complexity, management overhead, and potential user education challenges

Voting

  • For: Create the V2 BONZO/xBONZO pool with a 0.15% fee.
  • Against: Request revisions for further refinement.
2

Has the audits for the xBONZO protocols been completed?

And how much liquidity would the team provide in initializing the liquidity?

3

The audits for xBONZO contracts are nearing finalization with Halborn and will be completed this week.

The liquidity that will be supplied to initialize the pools should be ~$80-100k on both sides of the pool (xBONZO / BONZO); this activity is not performed by the Bonzo Finance Labs team, but an external 3rd party that works with the Hedera ecosystem around liquidity related activities (Amplifi).