Temperature check: governance proposal to fund fx-swap liquidity

Hi all,

Do you think it’s beneficial if we draw ~$500,000 worth of $FX tokens to increase the liquidity and TvL of fx-swap for FX-USDT, FX-PUNDIX and/or FX-ETH ?

Upon, say 24 months the funds shall be returned to CSP with gains or losses included. Probability of gain is higher due to trading fees and incentives.

Morning coffee thought.

1 Like

I think it will be a mix-mix situation.

  • Increasing the liquidity will be awesome for the ecosystem and for charts like DefiLlama.

However, the present liquidity providers’ farming rewards will be significantly decreased, and the APR is currently sub 20%. If $500k is injected and the APR falls to less than 15% APR, they might withdraw it, which would diminish the TvL and that will defeat the purpose of trying to increase the TvL.

It will be a very delicate situation because it will require balancing the TvL and APR.

  • Reason: Providing liquidity has its own risk and if the APR falls below a certain point, the risk-reward ratio may not look attractive enough for new users to inject and existing providers to maintain.

To give some context about the Average Farm APR:

  • FX/USDT - 21.65% APR (Excluding trading fees)
  • AVAX/USDC - 59.48% APR
  • BTC/AVAX - 24.66% APR
  • CAKE/BNB - 43.57% APR
  • Cake/USDT - 155.42% APR

I would still say “YES” though as it will be beneficial although there will be a few scenarios to consider if the APR drops too low.

  • Maybe the rewards can be increased in tandem to the injected liquidity so it at least maintains or increases its current reward apr.

Hi Zac !

I’d follow @SCENE point of view, especially considering FX/ETH and FX/USDT.
However, I wouldn’t be shocked to see FX and PUNDIX proposals to add FX/PUNDIX pair TVL.

Again, I’d prefer 1.000 times to see projects being achieved and reinvested.
I mean, what’s the point of increasing TVL 500k$ if we battle around 10-100 k$ funding ZooGames (or refunding a bit of Fox NFT).

We could also discuss airdrops distributed to public validators to attract new users…

Morning coffee thoughts as well…

@FrenchXCore (a.k.a. Mehdi)



Newbie question here, how does the $500,000 FX affect the current TVL?

Does it mean it will increase $1 million in liquidity ($500,000 FX and $500,000 for the other pairs)?

Depends on how the team injects it but most likely would be 500k/500k, split into multiple pool proportionally, I would assume.

I don’t think it will require selling half of the 500k, just guessing.

Can the foundation provide the other half non FX side?

Hi @zaccheah !

Coming back to this topic…

Why do you think increasing FX Swap liquidity would improve the ecosystem ?

Right now, if we were to vote for this (lend 500k $FX to the foundation), you’d need to compensate for the equivalent tokens ($USDT for FX/USDT LP, $ETH for FX/ETH LP, …).
At the same time, it would lower incentives (rewards) for non-foundation users.

At the contrary, we could organize a huge lottery airdropping $FX ( Community Pool $FX or $FX which were not distributed at $FX genesis for example) and incentives towards people farming those with a locked period over FX Swap.

But I’m still convinced that unless we focus on increasing active users (like any company), we won’t see an real and sustainable increase of liquidity or TVL.



if the foundation can provide the pairing ($500,000) and add rewards to avoid APR decrease, it is good. good point from scene.

Hi @moleculeboost ,

If the foundation compensates for the equivalent tokens, then all stakeholders do… Because the project was funded out of stakeholders converting PundiX to FX tokens, or from people buying FX tokens !
As far as I know, the only ETH, USDT, etc. the foundation might have are coming from the project’s funds.
Otherwise, I am missing something huge from an accounting point of view…


Hi all,

Liquidity will help a few things

  • whales buying (or selling)
  • defilama discovery
  • fairer pricing

We can incentize it on Fxswap but also on Uniswap and Osmosis. We do not have any liquidity on Osmosis rn. So it’s a matter of concentrating liquidity on Fxswap or offering more exposure via Osmosis. We can create an ibc bridge to Osmosis if we proceed with latter.

@SCENE @moleculeboost agree we should keep APR attractive if we increase TvL, one way is to deploy more fxswap liquidity mining funds and agree w @FrenchXCore more importantly than TvL increase is active users and true ecosystem value.

Liquidity is best increased for FX-ETH and FX-USDT maybe even FX-PUNDIX. Foundation could fund part of the opposite side (ETH, USDT / PUNDIX), i feel @SiverSurfer .


Will the topic of liquidity on the exchange be discussed!?
The volume of trades is simply absent!
Often the daily volume does not exceed $100!
On the mexc exchange, the volume is 5$)
Less simply nowhere!)

Prospective holders will look at tvl in defilama, if there’s increase in tvl is always a good thing as long as the reward % remains in similar range.

1 Like

Looks like you are talking about FX token volume on centralized exchanges. For L1, if we refer to Defillama, the focus will be on tvl, and the liquidity here will boost the TVL.

I think deploying liquidity outside of fxswap has a bigger chance of bringing new users into fx.

FX-USDC pool on Osmosis will be great. $500k in liquidity will bring FX into the top 15 liquidity providers on Osmosis.

1 Like

This is definitely good!
My question may have been off topic.
But yes, I care about how $fx is traded on centralized exchanges. Could this lead to the token being delisted on existing exchanges?

You brought up a good point about being in the top 15 liquidity providers on Osmosis.

With Osmosis liquidity providers leaving the ecosystem due to their TVL dip, this can be seen as a rare opportunity for FX to take advantage of the situation and be one of the new LP that can bring awareness and exposure to Function X ecosystem. Especially if it’s a USDT pair.

  • Every crisis is an opportunity if you execute it well.
1 Like

I went to dig some data and it seems that Osmosis have a massive drop, is it terra? and did all other cosmos tokens also dropped massively because of terra?

And how do you explain the increase of osmos token tvl, is it just inflationary token being staked ?

Suggestion to increase the TVL:
Deposit ETH and use WETH in DeFi to earn staking rewards (3.8%APR like on other platforms) while exploring additional reward opportunities.

Hi, I agree.

Function X is part of the Cosmos ecosystem, and liquidity on Osmosis is a must.

$500k in liquidity will be enough to include FX liquidity and become one of the top 15 on Osmosis. On top of that, FX liquidity providers can also receive incentives from Osmosis (they need to pass the governance proposal on to Osmosis).

Link: Liquidity Mining Incentives | Osmosis Docs


Howdy, Osmosis is the Uniswap of Cosmos. Function X needs to be available on Osmosis if we want to become top Cosmos projects.

Yes, from me.

1 Like

This is also a ripe opportunity as there are much lesser competitors now on Osmosis. There’s no better time than now.

The true aim of this is to spread awareness of FX and gain a foothold first. +1 for me as well.