b9fa48b671
- Source: inbox/archive/2024-01-24-futardio-proposal-develop-amm-program-for-futarchy.md - Domain: internet-finance - Extracted by: headless extraction cron (worker 3) Pentagon-Agent: Rio <HEADLESS>
62 lines
3 KiB
Markdown
62 lines
3 KiB
Markdown
---
|
|
type: entity
|
|
entity_type: decision_market
|
|
name: "MetaDAO: Develop AMM Program for Futarchy?"
|
|
domain: internet-finance
|
|
status: passed
|
|
parent_entity: "[[metadao]]"
|
|
platform: "futardio"
|
|
proposer: "joebuild"
|
|
proposal_url: "https://www.futard.io/proposal/CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG"
|
|
proposal_account: "CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG"
|
|
proposal_number: 4
|
|
proposal_date: 2024-01-24
|
|
resolution_date: 2024-01-29
|
|
category: "mechanism"
|
|
summary: "Migrate MetaDAO futarchy markets from CLOB to AMM architecture to improve liquidity, reduce manipulation risk, and eliminate state rent costs"
|
|
budget: "400 META on passing, 800 META on completion"
|
|
tracked_by: rio
|
|
created: 2026-03-11
|
|
---
|
|
|
|
# MetaDAO: Develop AMM Program for Futarchy?
|
|
|
|
## Summary
|
|
Proposal to replace Central Limit Order Book (CLOB) implementation of futarchy markets with Automated Market Maker (AMM) architecture using liquidity-weighted price over time as settlement metric. Addresses three CLOB limitations: lack of liquidity due to pricing uncertainty, manipulation vulnerability through midpoint pushing and wash trading, and 3.75 SOL per market pair in non-recoverable state rent costs.
|
|
|
|
## Market Data
|
|
- **Outcome:** Passed
|
|
- **Proposer:** joebuild
|
|
- **Budget:** 400 META on passing proposal, 800 META on completed migration
|
|
- **Timeline:** 3 weeks development + 1 week review
|
|
- **Resolution:** 2024-01-29
|
|
|
|
## Technical Specification
|
|
**AMM Design:**
|
|
- Liquidity-weighted average price over lifetime as settlement metric
|
|
- 3-5% swap fees to incentivize LPs and discourage wash trading
|
|
- Integration with autocrat + conditional vault programs
|
|
- Permissionless pause/close functions for post-verdict settlement
|
|
|
|
**Additional Features:**
|
|
- Loosen 50-slot restriction on proposal creation timing
|
|
- Auto-revert to fail after X days if proposal instructions fail
|
|
- Remove 1 META minimum order size (CLOB spam filter no longer needed)
|
|
|
|
**Team:**
|
|
- Program: joebuild
|
|
- Review: TBD expert
|
|
- Frontend: 0xNalloK
|
|
|
|
## Significance
|
|
First major architectural change to MetaDAO's futarchy implementation since launch. Represents shift from orderbook to AMM primitives for conditional token markets, with implications for all futarchy implementations. Economic motivation (135-225 SOL annual state rent savings) combined with mechanism design improvements (manipulation resistance, liquidity bootstrapping).
|
|
|
|
## Risks Identified
|
|
- Standard smart contract risk
|
|
- Uncertain LP adoption: "similar to an orderbook, available liquidity will be decided by LPs. AMMs will incentivize LP'ing, though adoption within the DAO is not a certainty"
|
|
- Migration complexity for existing markets
|
|
|
|
## Relationship to KB
|
|
- [[metadao]] - core mechanism upgrade
|
|
- [[futarchy is manipulation-resistant because attack attempts create profitable opportunities for defenders]] - addresses known CLOB manipulation vectors
|
|
- [[MetaDAOs Autocrat program implements futarchy through conditional token markets where proposals create parallel pass and fail universes settled by time-weighted average price over a three-day window]] - architectural change to this implementation
|