[Tip Request] Integrating Omnipool into PrivaDEX’s DEX aggregator

1yr ago

22 Comments

Content

AI Summary

Contribution period: 2023/03/01 - 2023/04/14
Requested tip: [Updated] 1,640,000 HDX ($7,400 USD) ~~4,100,000 HDX (~$18,500 USD)~~ to 7KnNvPwcYg7sAMgp9SK3knZavx2PkK9AJ1UQAdE3PhrmCWZa
Time spent: 185 hours
Summary: 1-click swaps to ANY Omnipool token from Moonbeam, Astar, Polkadot (or vice versa)

Our ask

We request 1,640,000 HDX ($7,400 USD) ~~4,100,000 HDX (~$18,500 USD)~~ for 185 hours of development work, at a rate of $40 ~~$100~~ USD/hr and using the current HDX price of $0.00451 USD. We did not find any comparable technical development HydraDX tip requests, so we are referencing (and discounting) the $125 USD/hr figure cited in similar Polkadot treasury requests. Please see https://polkadot.polkassembly.io/treasury/210, https://polkadot.polkassembly.io/treasury/223, and https://polkadot.polkassembly.io/treasury/199 for reference.

Context: PrivaDEX is the only cross-chain DEX aggregator on Polkadot

For context, PrivaDEX is the only cross-chain DEX aggregator on Polkadot: it is live at https://app.privadex.xyz. Before integrating HydraDX Omnipool, we only supported EVM DEXes on Moonbeam and Astar. HydraDX Omnipool is our first Substrate DEX. Now, users can swap from/to any Omnipool token to/from any token on Moonbeam, Astar, and Polkadot relay. More concretely, a DOT holder can swap their relay chain DOT into HydraDX HDX in one click - a use case we have already seen Omnipool LPs use.

About us: We have been developing in Polkadot for the past 7 months. We received a level 3 Web3 grant to build an MVP DEX aggregator (see the proposal at https://github.com/w3f/Grants-Program/blob/master/applications/PrivaDEX_aggregator.md), which we successfully delivered in January.

Summary: 1-click swaps to ANY Omnipool token from Moonbeam, Astar, Polkadot (or vice versa)

All in all, we put in 185 hours of development work over the course of 3.5 weeks. We spent most of March focused on this integration; we spoke to several core members of the HydraDX team in early March, who gave us advice and pointed us to development resources. We released Omnipool support in early April (see our April 4 announcement at https://twitter.com/doprivadex/status/1643045167098925056). When HydraDX ambassadors notified us that ZTG, iBTC, and USDT were added to Omnipool on April 13, we added support into our aggregator within 24 hours (see our April 14 announcement at https://twitter.com/doprivadex/status/1646688608458534912).

Quantifying Technical Work Done

Lines of code are a notoriously bad way of quantifying work, but for what it’s worth, we added over 3700 lines to our code base. Below are a few of the major technical components we added:

Index the Omnipool so we can compute price and swap quotes in real-time. Due to the interfacing with LRNA, Omnipool’s quote formulas are different from the Uniswap equations we were familiar with coming from Moonbeam and Astar EVM DEXes.
Add HydraDX-specific constants and configurations to our static chain and DEX registries. These are factored into everything from estimated fees for our quote estimates, to extrinsic encoding mechanism for our execution engine
Support for constructing HydraDX-specific pallet calls: balance and token transfer, XCM transfer, Omnipool send and buy
Support for detecting and parsing completed HydraDX extrinsics for each of the items in (3) above - e.g. how much of a token was sold or bought or transferred. Every Polkadot chain produces a slightly different set of events that has unique parsing logic.
Supporting a Substrate extrinsic as the initial and final transfer from/to the user. Earlier, because we only supported ERC20 and XC20 tokens on Moonbeam and Astar, we only supported ‘Eth’ sends and ERC20 transfers
Deduplication logic of a transfer extrinsic from the user. This is a security measure to ensure one user transaction kicks off exactly one flow. Note that earlier deduplication logic was simpler because Ethereum transaction hashes are known prior to sending, while Substrate extrinsic unique identifiers (block + index) are only known after block inclusion (extrinsic hashes are not necessarily unique)
Add configurable extrinsic signature encoding because HydraDX signers are encoded as a plain public key instead of as a MultiAddress, which is the standard for Polkadot relay and Astar

Update: 2023-04-26

Thanks for the community responses below and in particular for those who voiced appreciation for the work we've put into this! We realize that the initial request is too high given current market conditions and lack of cross-chain trading traffic. We have thus slashed our initial request to 40% of the original one. I'd love to reopen feedback on our tip request.

Edited

Comments

7Nws...fAUQ

Are there fees associated with PrivaDex? Is the relationship between Omnipool and PrivaDex mutually beneficial somehow? I have not used your service but am interested in some clarifying questions, did web3 grant fund your projects aggregator protocol? If so, was the grant to build out this multi chain aggregator or something else? If the grant was to build out this function, do you feel this tip request is double dipping for work that is already funded for?

Up 1

7MB6...v7Vt

I would suggest that funding costs need to be carefully considered.
$100 an hour is too expensive. . .
Based on the current community, all holders lose money. . . . .

7LQF...hYnJ

When the devs realize that the result is not the embodiment of their ideas in the code? The result is an active use of what they have done. Let's say if I am a client and I order certain functions, the devs do according to the terms of reference and receive payment. Ok. Another thing is when the devs themselves come up with a job for themselves, execute it and then come with an invoice for payment. Don't you think that in this case it is necessary to prove that what you have created is in demand, it is used. You talk that this win-win. Ok, I suggest we wait for the proof of use, proof of win-win.

7MN4...NqGS

I appreciate the work done, this has the potential to be very valuable for all parties in the future. That being said, I think the amount you are requesting vs the amount of value it currently provides do not align. Especially in the current state of the market and the current state of DeFi on Polkadot. Had this been proposed ahead of time, as a form of an "investment" by the protocol at this rate, I likely would have voted nay because I don't think the expense is worth the investment at this moment.

I do think your work is worth a tip, but at a reduced rate. I'm also open to the idea of tipping more in the future when PrivaDEX has proven itself to generate value for HydraDX, which I'm positive will happen.

Up 1

7KnN...CWZa

@Greta_Hydra @DAKAUAIGUY Agree with the sentiment here that usage is the gold standard for measuring impact. I do think, however, that waiting for proof of use before any payment punishes longer-term or more ambitious projects. We are in a bear market and cross-chain trading is still really immature, but we envision a cross-chain future for Polkadot and increased cross-chain trading volume in the next bull run. That said, it will likely take several months for Polkadot to reach this cross-chain trading volume, which is a long time for a small full-time team with limited runway.

More philosophically, community contribution is the lifeblood in any open-source project -- and particularly so for Web3. Our team works full-time to build (in the bear market) in the Polkadot ecosystem because we are bullish on the long-term future and we want to contribute to that future. Tying tech contribution to immediate business gain renders unviable full-time teams like ours.

To be clear though, we are happy to adjust the hourly rate. What do you recommend? As for tipping more in the future, I imagine it would be difficult to retroactively apply that unless such a process is established.

7Jgi...61gm

just to clarify, why if you were thinking of charging for the work, not asking the community beforehand if they were willing to pay for it at this time

I really appreciate the work and I think it will have potential too

But are you thinking of charging for each integrated parachain? although isn't that the point of being a Cross-chain Aggregator?

You deserve a tip without a doubt, but maybe if you communicated it beforehand, the community would decide to say NO to the integration and wait for a better moment or more demand

So maybe it's best to pay a lower amount and set a few milestones in terms of Users or volume? for a future payment?

7Jgi...61gm

@7KnNvPwcYg7sAMgp9SK3knZavx2PkK9AJ1UQAdE3PhrmCWZa

yep, being a DEX Cross-chain Aggregator it is essential that all possible chains be integrated, and in that case obviously we want to be there, but if a tip was going to be asked for the integration (this is a full payment - should be the fair if was an partial payment for it), surely it could have been discussed better

I repeat, I do not deny that you deserve a tip, simply the amount will not be the one requested, it is an integration that is mutually beneficial cause you charging a % for each tx

Will you think of making a full payment/Development request to each parachain you integrate?

Edited

7KnN...CWZa

Thanks for the feedback to everyone above. We have slashed our tip request to 40% of the original one. Please leave your comments on the new request!

7NfV...JhFv

I think a polkadot treasury tip or funding for more would be the route to go as it's a great tool for the entire eco to be developed. I think the right number is probably 5-7K looking at some of the feedback in various corners.

7NzN...tBec

Hey sirs the tip for Privadex is now on chain, and and now each Council based on the feedback and its own opinion, will decide its amount, and the average result will be what is distributed

must achieve a minimum of 7 Council

Link to the tip:
https://hydradx.subsquare.io/treasury/tip/2433210_0xb321ebc4161f1bcd724fb41d92e37cb92d7138e3cf6911f7c289f99cc255fb0d

7NzN...tBec

This tip has already been closed and distributed

the final amount to this was: 1168421 HDX

thank you so much

https://hydradx.subscan.io/extrinsic/2458485-3

Edited