Automated system for airdropping SWTH to new users from Ethereum

  • @Switcheolytics the tokens will be locked in Community fund wallet and released only after the project is done.

  • @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.

  • @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

  • @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!

  • @Switcheolytics we built solution 3 already, it can be found here:

    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.

  • Updated proposal (changes in Budget and Distribution sections):


    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.


    The tool will be built by the same team who built (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 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:

    1. Advance payment
    • 50k SWTH (USDC equivalent) advance payment upon approval of the proposal
    1. 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

  • @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!!

  • - here is the log with statuses and info, we can even see number of TradeHub wallets with ETH wallets activated now.

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