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- Source: inbox/archive/2024-01-24-futardio-proposal-develop-amm-program-for-futarchy.md - Domain: internet-finance - Extracted by: headless extraction cron (worker 6) Pentagon-Agent: Rio <HEADLESS>
3.3 KiB
| type | entity_type | name | domain | status | parent_entity | platform | proposer | proposal_url | proposal_date | resolution_date | category | summary | key_metrics | tracked_by | created | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| entity | decision_market | MetaDAO: Develop AMM Program for Futarchy? | internet-finance | passed | metadao | futardio | joebuild | https://www.futard.io/proposal/CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG | 2024-01-24 | 2024-01-29 | mechanism | Proposal to replace CLOB-based conditional markets with AMM architecture to improve liquidity and reduce state rent costs |
|
rio | 2026-03-11 |
MetaDAO: Develop AMM Program for Futarchy?
Summary
Proposal to migrate MetaDAO's futarchy implementation from Central Limit Order Books (CLOBs) to Automated Market Makers (AMMs) to address three structural problems: liquidity fragmentation from wide bid-ask spreads, manipulation vulnerability through midpoint pushing and wash trading, and state rent costs of 3.75 SOL per market pair.
Market Data
- Outcome: Passed
- Proposer: joebuild
- Created: 2024-01-24
- Completed: 2024-01-29
- Budget: 400 META on passing + 800 META on completion (1,200 META total)
- Timeline: 3 weeks development + 1 week review
Proposal Details
Problem Statement:
- Lack of liquidity: Wide valuation uncertainty discourages limit orders near midpoint
- Manipulation susceptibility: 1 META can push midpoint; VWAP vulnerable to wash trading
- State rent costs: 3.75 SOL per market pair = 135-225 SOL annually ($11,475-$19,125)
Solution:
- AMM with liquidity-weighted price metric (more liquidity = more weight to current price)
- High fees (3-5%) to incentivize LPs and deter wash trading
- Proposers lock initial liquidity and set starting pass/fail prices
- Near-zero state rent costs
Implementation Scope:
- Write basic AMM tracking liquidity-weighted average price
- Integrate AMM into autocrat + conditional vault
- Feature to pause swaps and return positions after verdict
- Feature to close AMMs and return state rent SOL
- Loosen time restrictions on proposal creation (currently 50 slots)
- Auto-revert to fail if proposal instructions don't execute after X days
Team:
- joebuild: program development
- 0xNalloK: frontend integration
- TBD: expert review
Significance
First major architectural change to MetaDAO's futarchy implementation since launch. The migration from CLOBs to AMMs represents a fundamental shift in how conditional markets operate - from discrete order books to continuous pricing curves. The proposal explicitly prioritizes liquidity and manipulation resistance over features like one-sided liquidity provision.
The state rent economics are notable: at 3-5 proposals/month, CLOB costs compound to $11K-$19K annually, making AMMs economically necessary at scale.
Relationship to KB
- metadao - core mechanism upgrade
- 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 - implementation being modified
- futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements - addresses liquidity friction