Increase Akita Inu liquidity on Avalanche (TraderJoe)

Summary
This is a proposal to increase the Akita token liquidity on Avalanche (TraderJoe). Current liquidity is approximately $20K. The suggestion is to increase it to $50K. The liquidity should be added within two weeks of the approved proposal, unless we are short on funds due to other already approved proposals (in which case the liquidity should be added as soon as possible).

Intro
Akita inu is available on Ethereum mainnet and Avalanche. Our liquidity is quite low in Avalanche, so it could be a good idea to increase it. Especially considering Avalanche is getting more popular and many investors seek to avoid the current gas costs on Ethereum mainnet.

Furthermore, Avalanche foundation recently announced they will be buying and supporting meme tokens. That in itself could be a good reason to increase the liquidity. Link: https://x.com/avax/status/1740538202346381605?s=46&t=bzN_t_UBNKlRAW7bp5BVMg

Execution
The liquidity is added from the Akita DAO treasury, by the DAO stewards or treasury manager.

Budget
The total liquidity on Trader Joe should be increased to $50K (at the time of writing we have approximately $20K liquidity, meaning we would need to add ~$30K in Akita + $30K in Avax).

Timeline
The liquidity should be added within two weeks of an accepted proposal, unless we are short on funds due to other already approved proposals (in which case the liquidity should be added as soon as possible).

4 Likes

Furthermore, Avalanche foundation recently announced they will be buying and supporting meme tokens. That in itself could be a good reason to increase the liquidity

Sounds like a good reason to me. I’m in.

3 Likes

Great proposal . $30k in AKITA tokens + $30k in Avax . It would need 60k totally

2 Likes

But it will be just a waste . While there are better(popular) chains for AKITA , no one will trade it on Avax . Akita can be on Base , BSC , New chains like Inj , solana

1 Like

Maybe Solana or Base would be better.
But let’s not call it a waste to increase the liquidity on Avalanche. Avax has been very popular recently.

1 Like

But not for memes like AKITA . We can use that money to launch on new chains that can really bring volume and attention

1 Like

Based on the information in their announcement, I don’t understand why you’re saying they won’t select Akita?

“The Avalanche Foundation intends to start using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme coins by purchasing select Avalanche-based meme coins to create a collection. […] The selection process for this collection is based on several key criteria, including the number of holders, liquidity thresholds, project maturity, principles of a fair launch, and overall social sentiment, among other factors”.

I am the one who recommended we launch Akita on Base or for example OP/Arb too, so another idea could be to increase liquidity on Avalanche by $10K and also launch Akita on another L2/sidechain. Thoughts?

3 Likes

As a current LP token holder on Avalanche, I definitely encourage this proposal. However, the Multichain bridge is currently not operational and Multichain has lost control of their DNS, meaning the website is likely compromised. (Back story here)

I am not a blockchain expert, and this is something the DAO can discuss further on how to approach, but without the bridge to the Multichain generated token contract, then I don’t think we would be able to bridge any of our AKITA over to the network. I’ve posted questions in the Avalanche Bridge Support channel of their Discord, as well as messaging our previous Multichain contact. However, we may not hear back until after the holidays. Can anyone else verify this or suggest a solution?

If there is no other solution, in order to increase the LP, we’d have to bridge over assets (USDC, ETH, etc) utilizing the Avalanche bridge. Then we’d need to market buy the AKITA that we would intend to pair with AVAX, as well as the necessary amount of AVAX to pair with the AKITA.

  • e.g If we wanted to add $10K total to the liquidity value, that would be $5K of AVAX and $5K of AKITA(AVAX).

Regarding the budget for this particular proposal to increase liquidity on Avalanche, $10K-$30K is within our scope at the current price point of AKITA.

1 Like

Agree. Increase current liquidity 100% or even more sounds perfect.
Akita avax side need more attention.

3 Likes

I didn’t mean they won’t choose us . I meant we can also use a prt of it for other chains .

Yes , $10 avax + $10k Akita total $20 for Avalanche chain makes sense for now .

1 Like

Following results of latest Snapshot here the DAO has chosen to forego facilitating the launch of AKITA on Solana, and has stated that it only wants to explore adding more support for Avalanche network based AKITA (a-AKITA). Below is some research I have done for the DAO on this topic.

  • Note for future Solana discussion: I was successful in using Wormhole to wrap AKITA and send it to Solana and back to Ethereum as unwrapped AKITA, so the function of a bridge is existing. Liquidity for trading, price feed alignment between networks, custom UI, etc would still need to be explored.

Multichain
Due to Multichain’s ceasing operations due to CEO/tech team being taken into custody, there is no bridge for Ethereum-based AKITA (e-AKITA) to Avalanche. With the Multichain bridge non-functional, there will be no additional minting of a-AKITA. The supply of a-AKITA that exists on Avalanche is limited to roughly 104B tokens. This is likely why there have been larger price discrepancies on TraderJoe vs UniSwap.

Adding liquidity to a-AKITA
In order to add liquidity to Avalanche, the DAO will need to establish a SAFE multisig on the Avalanche network. Our Pangolin multisig on Avalanche is not adequate for interacting with dApps. This will be a different address than our Ethereum SAFE multisig, and all assets from the current Pangolin multisig will need to be transferred to the new SAFE. With the Avalanche SAFE address established, the DAO can then use Synapse, Stargate, or a similar bridge with the additional function of supplying an alternative recipient address to receive funds.

Adding additional liquidity to Avalanche becomes difficult without the bridge for our e-AKITA tokens. In order to add liquidity, we would need to divest (swap) our e-AKITA to acquire ETH or USDC. These tokens would need to be swapped for the necessary amount of a-AKITA and AVAX to add to the LP. In swapping for a-AKITA, the DAO might be losing some value due to the price gap with e-AKITA.

Other Multichain tokens
Some other tokens who were affected by Multichain have chosen to establish a new bridge, minting a new token under a new contract. Because they have full control over their contracts, they are able to pull the LP, re-issue new tokens to replace the old ones, airdrop those new tokens to holders, and re-establish the LP for the new token.

AKITA is an ownerless token, the supply is fixed, and there can be no re-issuing of tokens. The Akita DAO is unable to follow the process of these other tokens.

Alternative Solution for a-AKITA

  1. Akita DAO would need to establish a new bridge through custom development or partnership with a pre-existing bridge (e.g. Singularity DAO which was also affected by Multichain). This bridge would mint a new AKITA token for Avalanche.
  2. The DAO would need to then pull the LP from TraderJoe, withdrawing the old a-AKITA and AVAX from the trading pool. This would require substantial advanced communication to AKITA holders, with plenty of lead time for other LP holders to exit their position. It could be anticipated this will lead to some sell-off and weakening of the overall LP, but it is a necessary step.
  3. Since the old a-AKITA pulled from the LP would be worthless, the value of the LP is essentially 50% of its old value. If the DAO wanted to launch the new token with equivalent or more liquidity, then it must bridge those additional funds to Avalanche.
  4. With a new LP in place for the new token, then Akita DAO could either airdrop the new token to holders, or it would use a Migration tool similar to what Singularity DAO has done here.
  5. A new price feed oracle or other tool must be in place with the new bridge in order to align the new a-AKITA token price with the e-AKITA token price.

Note: I have already established some communication with Singularlity DAO. Their website clearly lists their services, which could also be helpful for Akita DAO – vesting, staking pools, vaults, etc. Akita DAO could reach out to Singularity DAO to discuss possible partnership.

2 Likes