Automated system for airdropping SWTH to new users from Ethereum
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Summary
Automated system for airdropping SWTH to new users from Ethereum
At the moment there is a 1 SWTH fee on deposits and a new user from Ethereum chain has to own or buy SWTH to receive the funds. This is a big barrier in our opinion which makes it hard for new people to initially enter TradeHub.
Description
The tool will be built by the same team who built https://swth.info (including faucet for those who need spare SWTH).
This project will remove the barrier for newcomers from Ethereum (other chains in future) and will airdrop 3 or so SWTH to those wallets which have no SWTH on deposit from Ethereum chain.
We plan to start working early January and finish by the end of that month.
You can see that swth.info is maintained and new things constantly added to it, we are long-term Switcheo supporters and well-known community members.Risks and Benefits
We don't see any risks involved, we have experience with Switcheo chain and Ethereum chain already.
Removing barrier for new Demex users.
Budget:
2000 USD (100% on release)Project deliverables:
- Switcheo txns monitoring system
- Ethereum txns monitroring system (Switcheo Ethereum contract)
- Mapping & balance control system
- Alerts & control system
- Logging system
- Testing
Switcheo TradeHub Wallet Address: swth1vxdnh987wa7l88qlamk899s85fun7n2zr0ppuk
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and +3000-5000 SWTH (at least) to the wallet which will be airdropping.
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Could you elaborate on how the system will avoid double sending airdrops, and also describe the mechanism in which byzantine attacks (which can lead to draining of airdrop supply by one / a few users) is avoided or mitigated?
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@ravenxce I am not sure i understood the question but will try to give more details on how the system will work in the end.
The system will basically monitor TradeHub Ethereum smart-contract and look for transactions with createWallet method. When it finds a relevant transaction it will decode eth transaction and map it with swth1 wallet, then it will check if that swth1 wallet has SWTH available and if not airdrop 3 SWTH (1 is for fee).
Considering the fact that a person has to pay 1-time fee for ETH wallet creation on first deposit and since this will be a 1-time transaction per wallet (this sec check will be in place as well) I don't see any use trying to destruct the system at all.
Did I answer your question?
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@acidbird Yup, thanks.
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We can upgrade the system and add an ability to turn on wallet creation ETH fee refund to it for those who deposit for example more than 1000 USD (or any other amount we decide) worth of ETH or ERC-20 tokens.
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Is the proposal to refund ETH wallet creation fees or to fund accounts getting started or both?
This is effectively putting automation on top of the faucet you already have and would absolutely be beneficial for new users. Is 2 SWTH enough to get done what a Pool Participant would want to do?
Assuming the participant wants to pool ETH/wBTC they can deposit ETH, trade for wBTC on DeMex for free. Then add each token to the pool (1 SWTH) and then stake the LP token (1 SWTH). At that point they will be out of funds and claiming is 30 SWTH and if they want to exit it will be more.
Seems like this is highlighting the fact that the user onboarding experience needs some clear estimates on what a user will spend and need the SWTH for.
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I would also suggest that the rewards go to a neutral 3rd party escrow account so that they can be released upon successful deliverables achieved.
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@Switcheolytics It is a new system for airdropping new Ethereum users which don't have SWTH yet, the code will be published on github. As for the airdrop amount we are still thinking about it, the plan is to start with 5 SWTH.
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@Switcheolytics the tokens will be locked in Community fund wallet and released only after the project is done.
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@acidbird said in Automated system for airdropping SWTH to new users from Ethereum:
Community fund wallet
I'm not familiar with what this is? Is it a multisig wallet? Who controls it?
I might have a solution for this, will update.
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@Switcheolytics the initial proposal was rejected, there is a discussion in validators group on discord happening atm, joint effort to update it and propose again
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@acidbird Understood.
I'm not sure where everyone else is on the subject b/c its impossible for me to keep up with each chat and wade through the toxicity but here is my 2c so that it is a bit more organized here on the message boards.
Goal/Purpose: Help users that don't have enough funds to cover gas costs.
This can be new users (the ideal target) or existing users who accidentally spend to many SWTH.
I can think of a range of solutions to this, I'm sure others have proposed similar so if you have already covered this, apologies in advance.
Solution 1 - most complex and out of communities hands and dependent on dev team but would be a good user experience
Change the core protocol to convert or spend potential rewards on the claim or transfer function. The thought being if it takes 30 SWTH to claim rewards from the liquidity pool and you were going to receive 1,000 SWTH then there could be a function to use 30 SWTH from the reward pool as part of the claim. Another option would be to give the user an option to spend some of their non-SWTH token to automatically convert to SWTH and pay for the transaction. Obviously these are quite complex and IDK how you would mine this transaction without having the funds but it could be something like an flash loan that is handled on chain. Which leads me to....
Solution 2 - medium complexity and seems like it could be built by the community
For the lack of a better term I'm going to call this "Gas Saver" or "Gas Savior" that would be a service a user could go to that would offer to loan the user funds but charge a small fee (perhaps free at first) to execute their transactions. This would require a couple of mechanisms that would check funds on chain and if the user could pay it off but should offer a good experience. This could look like, directly paying for transactions, converting funds to pay for transactions, etc.
Solution 3 - low complexity and something it appears you already have working
A faucet that covers more use cases than the current version. This would need to be promoted a lot and probably isn't the best experience for the user. It is also open to abuse/sybil attacks but there could be some loose guidelines around the validity of asking for funds. Similar to Solution 2 you could check to see that the user has funds on chain and that they aren't abusing the request system. That is similar to what you are proposing here but would cover a wider range of use cases.
Look forward to the next iteration!
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@Switcheolytics we built solution 3 already, it can be found here: https://swth.info/faucet
as for this proposal it is slightly different, the goal is to make sure new ppl from Ethereum have enough SWTH at start, meaning they have 1 SWTH for deposit (receive button), for making/cancelling first trades and this is done automatically by the system tracking Ethereum contract (wallet creation) and mapping it with SWTH1 addresses, checking if the wallet has spare SWTH or not and airdropping them. In future when we finish this part we can for sure execute Second and even First solutions and build even more complicated things.
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Updated proposal (changes in Budget and Distribution sections):
Summary
Automated system for airdropping SWTH to new users from Ethereum
At the moment there is a 1 SWTH fee on deposits and a new user from Ethereum chain has to own or buy SWTH to receive the funds. This is a big barrier in our opinion which makes it hard for new people to initially enter TradeHub.
Description
The tool will be built by the same team who built https://swth.info/ (including faucet for those who need spare SWTH).
This project will remove the barrier for newcomers from Ethereum (other chains in future) and will airdrop 3 or so SWTH to those wallets which have no SWTH on deposit from Ethereum chain.
We plan to start working early January and finish by the end of that month.
You can see that swth.info is maintained and new things constantly added to it, we are long-term Switcheo supporters and well-known community members.Risks and Benefits
We don't see any risks involved, we have experience with Switcheo chain and Ethereum chain already.
Removing barrier for new Demex users.
Budget: Upon approval of this proposal 130k SWTH will be dispatched to a 3rd party escrow address managed by the GoT validator. These funds will be used as follows:
- 100k SWTH (dev incentive) converted to USDC by the escrow upon receipt:
- 30k SWTH (for airdropping to new accounts) held in escrow
Distribution schedule:
- Advance payment
- 50k SWTH (USDC equivalent) advance payment upon approval of the proposal
- On product delivery, after code review by Devel484 and Billie
- 50k SWTH (USDC equivalent) payment on delivery + 30k SWTH for the airdropping wallet
Escrow wallet: swth16ke4n7xenpxr8984g324jzxde7qplzkruq4h84
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@acidbird my point is that there are ways to solve this long term and what I try to lay out are 3 varying options on how to solve it. The solution proposed here is basically the 3rd option but not as robust.
I do think some solution is needed here so will be watching the vote. Thanks for the updated proposal as well!!
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@Switcheolytics did you check https://swth.info/faucet?
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The code can be viewed here: https://github.com/SwitcheoCommunityFund/ethereum-switcheo-tradehub-airdrop
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https://swth.info/airdrop-log - here is the log with statuses and info, we can even see number of TradeHub wallets with ETH wallets activated now.