Hxro Network Grant Request: Automated CLP Management Vault Integration
A more efficient way to provide liquidity to $HXRO, by Stacc
I saw that there is a proposal for a grants/bounty program for Hxro Network. I have been a big fan of the Hxro project for a long time and am happy to see there is an opportunity for Solana developers to now participate. I am writing to request a 3,000 USDC grant for an innovative and automated solution to increase $HXRO token market liquidity for the Hxro Network. As the network continues to scale, it is crucial to maintain a high level of liquidity for the core token, $HXRO. This is and important and vital initial step to supporting the ecosystems network mechanics, attracting new users and further participation from existing users.
To address this challenge, I propose the development of an Automated CLP (Concentrated Liquidity Position) Management Vault, which would allow users to deposit $HXRO, $USDC, and $SOL. The Vault would then run on-chain threads using Clockwork’s infrastructure to provide liquidity on $HXRO/USDC and $HXRO/$SOL whirlpools listed on Orca while keeping the positions in an economically profitable and competitive range. This process would ensure deeper liquidity on the $HXRO token and make it easier for users to swap in and out of the network’s core token with less slippage.
This is a v0.1.0 implementation of a much larger network of position management vaults. They will draw liquidity from people with different risk aversions as well as preferred tokens to hodl.
To further incentivize deposits to the Vault, a portion of the revenue generated from DEX trading fees would be used to buy $HXRO off the market and stake it to the network at its maximum staking term of 3 years. As this will give the vault LP’s the greatest possible reward per staked HXRO. The staking rewards earned by the Hxro Network would be distributed to the Vault Depositors’ reward pool, creating a perpetual $HXRO token accumulation that the Vault would always own along with its staking rewards. Additionally I would like to request 50,000 HXRO for the seed-ing of this staking vault.
The proposed Automated CLP Management Vault solution is a strategic approach to improve the HXRO token market base liquidity on Solana and help support a sustainable growth path for the Hxro Network. The innovative design and use of on-chain threads and Clockwork’s infrastructure would ensure that the Vault operates in an efficient and automated manner, leading to optimal liquidity for the $HXRO token.
I believe that this rather de minimis grant request will provide ane extremely positive ROI for the network and for all HXRO holders (especially those who participate in the vault) where the long term benefits to the network will far suprass the size of the grant. Thank you for your consideration, and I look forward to doing my part in providing a valuable component to the network.
Grant Amount: 3,000 USDC
Seed of the Staking Pool: 50,000 HXRO