# Shutter DAO 0x36 Proposal Deploy a DEX Pool on a Low Cost Chain (Part 2) **URL:** \ **Category:** SD 0x36 Proposals\ **Created:** [April 8, 2024, 2:13pm UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358 "2024-04-08T14:13:45Z")\ **Posts on this page:** 15\ **Page:** 1
**Author:** ![Cornelis](https://avatars.discourse-cdn.com/v4/letter/c/67e7ee/32.png) [@Cornelis](https://shutternetwork.discourse.group/u/Cornelis)\ **Post date:** [April 8, 2024, 2:13pm UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/1 "2024-04-08T14:13:45Z")
| Proposal Title | Author(s) | Phase | Type | Date Created | | --- | --- | --- | --- | --- | | Proposal to Deploy a DEX Pool on a Low Cost Chain (Part 2) | Cornelis Theodorus van der Klooster | I | On-chain | 08.04.2024 | # Title Proposal to Deploy a SHU/USDC DEX Pool on a Low Cost Chain (Part 2) ## Proposal We propose Shutter DAO 0x36 deploy and fund a SHU/USDC pool on a DEX on Optimism Mainnet. Note that anyone can deploy DEX pools, but we recommend Shutter DAO 0x36 focus on one chain to reduce liquidity fragmentation. ## Parts / Process Part 1: Select a low cost chain (Snapshot Vote) (DONE - see links below) Part 2: Select a DEX (Snapshot Vote) (current proposal) Part 3: Deploy and fund a SHU/USDC pool on selected DEX / chain (Fractal) (if Part 2 passes) ## Motivation Shutter DAO 0x36 voted in favor of deploying a DEX pool on Optimism Mainnet in a recent “temp check” on Snapshot. Now we propose that Shutter DAO 0x36 selects which DEX pool to deploy and fund on Optimism Mainnet. There are 3 options (listed in order of trading volume / market share): - Uniswap v3 - [https://coinmarketcap.com/exchanges/uniswap-v3-optimism/](https://coinmarketcap.com/exchanges/uniswap-v3-optimism/) - Velodrome v2 - [https://coinmarketcap.com/exchanges/velodrome-finance-v2/](https://coinmarketcap.com/exchanges/velodrome-finance-v2/) - Beethoven X - [https://coinmarketcap.com/exchanges/beethoven-x-optimism/](https://coinmarketcap.com/exchanges/beethoven-x-optimism/) See overview at: [Top Cryptocurrency Decentralized Exchanges Ranked | CoinMarketCap](https://coinmarketcap.com/rankings/exchanges/dex/) ## Background Shutter DAO 0x36 Proposal Deploy a DEX Pool on a Low Cost Chain (Part 1) “Temp Check” on Deploying a DEX Pool on a Low Cost Chain [https://shutterdao.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-1/341](https://shutterdao.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-1/341) Optimism Mainnet - 51.12% ✅[https://snapshot.org/#/shutterdao0x36.eth/proposal/0x6f5ffa38a7a4840bb5ac1115b29ae7caffba975de292e344ba8708eef2a6a7e9](https://snapshot.org/#/shutterdao0x36.eth/proposal/0x6f5ffa38a7a4840bb5ac1115b29ae7caffba975de292e344ba8708eef2a6a7e9) ## Platform Snapshot (ranked choice voting) ## Voting Options - Uniswap v3 - Velodrome v2 - Beethoven X ## License CC0: This work is marked with [CC0 1.0](https://creativecommons.org/publicdomain/zero/1.0/) as dedicated to the public domain. ---
**Author:** ![Baer\_DAOplomats](https://dub1.discourse-cdn.com/flex017/user_avatar/shutternetwork.discourse.group/baer_daoplomats/32/203_2.png) [@Baer\_DAOplomats](https://shutternetwork.discourse.group/u/Baer_DAOplomats)\ **Post date:** [April 8, 2024, 3:05pm UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/2 "2024-04-08T15:05:52Z")
Hey @Cornelis, thanks for making this proposal progress without much delay. Uniswap has always been my favourite dex when it comes to making a new pool; this is not because of the Lindy effect, but because of the innovative model they provided in V3 and eventually in V4. > [@Cornelis](#): > > - Velodrome v2 > - Beethoven X What do I think of the other two? I don’t have any specific feedback on Beethoven X, but I would like to get more info as they are a Balencer Fork. However, using Velo could attract us some liquidity in the short term if we provide incentives, but this will dry out as soon as the incentives are over. Furthermore, active management of liquidity through ranges isn’t available in that DEX. ## The Pool selection > [@Cornelis](#): > > Part 3: Deploy and fund a SHU/USDC pool on selected DEX / chain (Fractal) (if Part 2 passes) Can you please give your rationale behind choosing the pool with a stablecoin? The UNI pool uses a version of x\*y =k, this is mostly true for all the UNI forks and AMMs. Where x is the price of SHU and y is the price of the pair. In these pools, we will risk of Impermanent loss and loss of funds, which isn’t realised. It’s pretty challenging for me to explain all the concepts in a forum, so let me give you a scenario where we could get IL. If SHU has a significant price increase/decrease and the price of USDC stays the same. IMO it is highly likely that there will a significant price change for SHU. I would consider choosing ETH as the second paid as the price action of Altcoins is heavily correlated with that of ETH’s Furthermore, investigate weighted allocations, as Balancer pools allow you to put tokens in non-50/50 weight, and a pool like 80/20 will give us a lot of leverage in liquidity. ![From Coingecko](https://europe1.discourse-cdn.com/flex017/uploads/shutterprotodao/original/1X/6acf57bc9f2f7e837cfdaa983c4770117d8af049.png) More on IL: 1. [https://www.coingecko.com/en/impermanent-loss-calculator](https://www.coingecko.com/en/impermanent-loss-calculator) 2. [Impermanent Loss Calculator (Examples + 3 Versions) - WhiteboardCrypto](https://whiteboardcrypto.com/impermanent-loss-calculator/) ---
**Author:** ![acidbird](https://avatars.discourse-cdn.com/v4/letter/a/278dde/32.png) [@acidbird](https://shutternetwork.discourse.group/u/acidbird)\ **Post date:** [April 9, 2024, 6:26am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/3 "2024-04-09T06:26:42Z")
fan of Uniswap too, Beethoven has a nice team though, very friendly and responsive guys, fork of Balancer i believe. Velo would be the last choice for me. ---
**Author:** ![jeffery](https://avatars.discourse-cdn.com/v4/letter/j/c0e974/32.png) [@jeffery](https://shutternetwork.discourse.group/u/jeffery)\ **Post date:** [April 10, 2024, 7:50am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/4 "2024-04-10T07:50:18Z")
jeffery from Beethoven X here. First all, to clarify, the Balancer / Beethoven X joint deployment on optimism is NOT a fork, it is the official Balancer deployment and fully integrated into the ecosystem (including veBAL gauge and the liquidity layer Aura on top balancer pools). I also second the advantage of IL in terms of weighted 80/20 pools, which is imho perfect vehicle for protocol owned liquidity. Happy to answer any additional questions. ---
**Author:** ![methodic](https://avatars.discourse-cdn.com/v4/letter/m/c77e96/32.png) [@methodic](https://shutternetwork.discourse.group/u/methodic)\ **Post date:** [April 11, 2024, 8:23am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/5 "2024-04-11T08:23:17Z")
Hey @Cornelis I’m from the Velodrome team - thanks for considering making Velo your liquidity hub. Firstly, Velodrome has almost 2X the TVL of Uniswap and almost 8X the TVL of Beethoven X on Optimism. We’ve maintained this leadership position on Optimism for over a year because of how effective our model is at helping projects bootstrap liquidity in the early stages as well as sustain/maintain liquidity when more mature. Currently for every $1 in fees generated by pools on Velodrome, LPs receive almost $2 worth of rewards which means getting twice as higher APRs for the same TVL on Uniswap. We are also working with Chaos Labs to boost native USDC on Optimism by matching incentives deposited by partners with 12.5K OP tokens per week - if you decide to go ahead with a SHU/USDC pool. [https://twitter.com/VelodromeFi/status/1774847844236845411](https://twitter.com/VelodromeFi/status/1774847844236845411) We can also offer white glove support to build a program to achieve the DAOs TVL targets and take into consideration any priorities around ROI of spend. Helping protocols bootstrap liquidity is our bread and butter and there is a reason why 90% of defi protocols choose Velodrome. FYI we are also the same contributors behind Aerodrome which is the largest protocol on Base with almost 700m TVL. It uses the exact same model as Velodrome. Curious to know - how much Protocol Owned Liquidity does the DAO have that could be put to use on Optimism? ---
**Author:** ![Cornelis](https://avatars.discourse-cdn.com/v4/letter/c/67e7ee/32.png) [@Cornelis](https://shutternetwork.discourse.group/u/Cornelis)\ **Post date:** [April 11, 2024, 1:09pm UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/6 "2024-04-11T13:09:33Z")
very nice to see you put some rationale behind the different options. Just like with the initial proposal as to the chain it should be on, Artis does not really have a strong opinion on where this should take place. It is more so related to the benefits of you all here as you’re going to be the core decision makers in what the pool should inherently be doing both from inner workings as well as to public facing interference. Having the flexibility of a different weighted pool is very nice from Balancer but the overall usability and interference with UNI V3 also has its benefits. To each their own and I almost hate to say it but there are no real wrong or right answers here. When talking about the counterpart to trade against we are a bit on the fence for trading to a volatile counterasset. Yes it pays off in the bull phase but would inevitably have to be swapped over to a stable counterpart when the times change. The calling of this particular trading venue was first and foremost targeted at making sure people can participate with SHU to stable for better rates (as opposed to paying an arm and a leg for smaller trades). The real driver of price will be the established V2 pool though. We are not against setting up ETH now but the early stages of SHU are somewhat of a worry to set it up against a more volatile counterpart. That reasoning also sides with ‘Methodic’ from Velodrome who sees the benefits of the early stage bootstrapping element + maturity sustainability for the long run. Then the nifty addition of matching incentives makes it rather interesting. Just to nail it down: ETH would currently be an interesting pick but inevitably has to change over in due time to make sure the potential benefits are gained and in turn the negatives are negated in the future. I’m sending out the proposal on Snapshot now to get the ball rolling for the DEX first off. ---
**Author:** ![Cornelis](https://avatars.discourse-cdn.com/v4/letter/c/67e7ee/32.png) [@Cornelis](https://shutternetwork.discourse.group/u/Cornelis)\ **Post date:** [April 11, 2024, 1:23pm UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/7 "2024-04-11T13:23:06Z")
Let’s see! [https://snapshot.org/#/shutterdao0x36.eth/proposal/0xd8c06ee35b42344e8e4cda8ae968ac108dc4c3c57bd19d9d8a7b09a84260f4e3](https://snapshot.org/#/shutterdao0x36.eth/proposal/0xd8c06ee35b42344e8e4cda8ae968ac108dc4c3c57bd19d9d8a7b09a84260f4e3) ---
**Author:** ![Baer\_DAOplomats](https://dub1.discourse-cdn.com/flex017/user_avatar/shutternetwork.discourse.group/baer_daoplomats/32/203_2.png) [@Baer\_DAOplomats](https://shutternetwork.discourse.group/u/Baer_DAOplomats)\ **Post date:** [April 11, 2024, 6:20pm UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/8 "2024-04-11T18:20:30Z")
> [@Cornelis](#): > > very nice to see you put some rationale behind the different options. Just like with the initial proposal as to the chain it should be on, Thanks. As a professional delegate representing token holders, I’m responsible for conveying how and why we at DAOplomats vote; you can expect more brain dumps from me. 🙃 > [@jeffery](#): > > First all, to clarify, the Balancer / Beethoven X joint deployment on optimism is NOT a fork, it is the official Balancer deployment and fully integrated into the ecosystem (including veBAL gauge and the liquidity layer Aura on top balancer pools). I’m now more lenient towards Beethoven because of their relative advantage when it comes to how you can structure pools. My voting choices will be 1. Uni v3, 2. Beethoven if you are going with 50/50 SHUUSDC ---
**Author:** ![methodic](https://avatars.discourse-cdn.com/v4/letter/m/c77e96/32.png) [@methodic](https://shutternetwork.discourse.group/u/methodic)\ **Post date:** [April 12, 2024, 5:30am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/9 "2024-04-12T05:30:33Z")
If you’d prefer to manage ranges we also have Slipstream which is adapted from Univ3 with slightly wider tick spacing. So another benefit of just going straight to Velodrome 🙂 You can read more about it here: [Velodrome Development Journal | Slipstream](https://paragraph.xyz/@velodrome/slipstream) ---
**Author:** ![d0z3y](https://avatars.discourse-cdn.com/v4/letter/d/a8b319/32.png) [@d0z3y](https://shutternetwork.discourse.group/u/d0z3y)\ **Post date:** [April 12, 2024, 9:32am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/10 "2024-04-12T09:32:57Z")
The higher rewards from velodrome sound good however whilst the TVL is higher than uniswap, it looks like Uniswap has almost 8 times the trading volume: > **[DefiLlama](https://defillama.com/dexs/chains/optimism)** > > DefiLlama is a DeFi TVL aggregator. It is committed to providing accurate data without ads or sponsored content, as well as transparency. It also looks like over 40% of volume on velodrome is the Velo token: [https://dune.com/msilb7/velodrome-fees](https://dune.com/msilb7/velodrome-fees) Uniswap for comparison [https://dune.com/jiesus/uniswap-optimism-v3-volume-and-fees-collected](https://dune.com/jiesus/uniswap-optimism-v3-volume-and-fees-collected) Happy to be corrected if the above is in error however based on this I would vote for the dex with the higher usage in order to maximise visibility (which looks like uniswap). ---
**Author:** ![Alexander](https://avatars.discourse-cdn.com/v4/letter/a/bc8723/32.png) [@Alexander](https://shutternetwork.discourse.group/u/Alexander)\ **Post date:** [April 12, 2024, 12:08pm UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/11 "2024-04-12T12:08:44Z")
Well, everyone of course is entitled to their opinion, but there is no doubt that Velodrome is the first choice of most projects and LPs on Optimism – by a rather significant margin. ![Screenshot 2024-04-11 at 8.28.08 AM](https://europe1.discourse-cdn.com/flex017/uploads/shutterprotodao/original/1X/77c3011429bdd72ae42b684acf3f286023a34bac.png) You’ll have the optionality to choose your ideal AMM type, get a 2x-3x multiplier on any incentives, gain mindshare from OP native users, and qualify for $OP bonuses via our “Tour de OP”. > [@Baer\_DAOplomats](#): > > However, using Velo could attract us some liquidity in the short term if we provide incentives, but this will dry out as soon as the incentives are over. Furthermore, active management of liquidity through ranges isn’t available in that DEX. Incentives can help you all bootstrap liquidity that you could transition to a Slipstream pool once our ALM is live if that is the preference. Could also use POL to farm back VELO, lock it, and support liquidity that way. Either way, you won’t find better efficacy than a program on Velodrome. ---
**Author:** ![Tao](https://avatars.discourse-cdn.com/v4/letter/t/f9ae1b/32.png) [@Tao](https://shutternetwork.discourse.group/u/Tao)\ **Post date:** [April 13, 2024, 8:39am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/13 "2024-04-13T08:39:55Z")
Hey all, excited about a potential Shutter \<\> Velodrome partnership. Please consider the following benefits of using Velodrome: 1. For every $1 in trading fees the pool collects, it could attract $2 in VELO emissions, boosting the value the DAO will receive on the LP position. 2. With Slipstream, Velodrome is quickly capturing volume on Optimism: [https://twitter.com/VelodromeFi/status/1778871609388151075](https://twitter.com/VelodromeFi/status/1778871609388151075) 3. Shutter is likely to benefit from Velodrome’s additional incentive programs such as Tour de OP, as Shutter will qualify as an Ecosystem partner. Happy to answer any questions on how Shutter can best leverage Velodrome’s mechanics. ---
**Author:** ![methodic](https://avatars.discourse-cdn.com/v4/letter/m/c77e96/32.png) [@methodic](https://shutternetwork.discourse.group/u/methodic)\ **Post date:** [April 14, 2024, 4:58am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/14 "2024-04-14T04:58:03Z")
Yes all that volume is coming from Univ3 pools We launched our Univ3 style pools about a month ago called Slipstream and still currently still in ramp up stage Its the same core functionality as Univ3 pools but with larger tick spacing and we’re now at 40% of Univ3 volume with only 1 aggregator plugged in 🙂 [https://x.com/VelodromeFi/status/1778871609388151075](https://x.com/VelodromeFi/status/1778871609388151075) Higher usage for key Optimism pairs with univ3 style pools will not somehow automatically maximise visibility for Shutter DAO anyway (sounds like your main motivation to choose uniswap), if you’re looking for the most visibility, partnering with the largest DEX in the ecosystem with and a more efficient and proven model, Velodrome is a no brainer. Looking forward to the outcome of the vote! ---
**Author:** ![miohtama](https://dub1.discourse-cdn.com/flex017/user_avatar/shutternetwork.discourse.group/miohtama/32/105_2.png) [@miohtama](https://shutternetwork.discourse.group/u/miohtama)\ **Post date:** [April 14, 2024, 10:40am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/15 "2024-04-14T10:40:56Z")
Hi all, I voted for Velodrome as #1 - **UniswapX is more-or-less direct competitor of Shutter’s MEV solutions** - although it might not seem it like today, this is where the on-chain world seems to be evolving - less centralised intents and opaque order flow we have, the better - Based on the discussion here and asking my DeFi friends, Velodrome is a raising star - Uniswap has a lot of regulatory uncertainty being US-based ---
**Author:** ![Loring-Brainbot](https://dub1.discourse-cdn.com/flex017/user_avatar/shutternetwork.discourse.group/loring-brainbot/32/535_2.png) [@Loring-Brainbot](https://shutternetwork.discourse.group/u/Loring-Brainbot)\ **Post date:** [April 15, 2024, 8:38am UTC](https://shutternetwork.discourse.group/t/shutter-dao-0x36-proposal-deploy-a-dex-pool-on-a-low-cost-chain-part-2/358/16 "2024-04-15T08:38:13Z")
Snapshot results: ![Screenshot 2024-04-15 at 10.37.50](https://europe1.discourse-cdn.com/flex017/uploads/shutterprotodao/original/1X/8ee57f995cd3f6c532f9008e762bfc0a1acab7f9.png) See details: [https://snapshot.org/#/shutterdao0x36.eth/proposal/0xd8c06ee35b42344e8e4cda8ae968ac108dc4c3c57bd19d9d8a7b09a84260f4e3](https://snapshot.org/#/shutterdao0x36.eth/proposal/0xd8c06ee35b42344e8e4cda8ae968ac108dc4c3c57bd19d9d8a7b09a84260f4e3)