Proposal: Launch and Seed New knBONE Liquidity Pools on Shibarium DEXs

General
1

Intro

First, I know it’s typically up to responsible projects and Shibarium users to create and seed LPs, but personally, I’m getting a bit annoyed seeing new pairs created with BONE over and over again, while knBONE, our liquid staking token, is underutilized across DeFi. It’s time for a push, a little wake-up call, so people can better understand what K9 Finance DAO and the Bonecrusher dApp are all about.

1. Introduction and Objective

Currently, most Shibarium DEX liquidity pools are paired with BONE, not knBONE. This limits the DeFi composability and wider utility of knBONE, potentially acting as a barrier for users to adopt liquid staking via Bonecrusher.

The objective of this proposal is to increase knBONE’s utility and adoption by launching and seeding new (and/or increase pools that are low) LPs on Shibarium DEXs, pairing knBONE with relevant tokens and stablecoins. These pools will deepen knBONE liquidity, drive new users to the protocol, and make K9 Finance’s liquid staking product more attractive.

2. Benefits to K9 Finance Community

  • Increased Utility: More LP options means knBONE becomes a versatile asset for DeFi on Shibarium.
  • Boost TVL: Enhanced utility and liquidity attract more users to stake BONE via Bonecrusher.
  • User Engagement: New pools = more yield options, more ways for users to put their assets to work.
  • Market Depth & Stability: Deeper liquidity improves trading and reduces slippage.
  • Strengthen Ecosystem: Makes knBONE central to Shibarium DeFi, raising our protocol’s profile.

3. Proposal Details

WHAT:

  • Launch and seed 5–7 new knBONE LPs on trusted Shibarium DEXs.
  • Initial candidate pairs (to be finalized by poll), for example: knBONE/SHIB, knBONE/TREAT, knBONE/USDC, knBONE/USDT, knBONE/wETH, knBONE/KNINE, knBONE/DND721.

WHO:

  • K9 Finance DAO: Governance, oversight, resource allocation.
  • Dev Team: Handles all technical and treasury management.
  • Marketing Sub-DAO: Drives community engagement, education, promotion.
  • DEX Partners: Hosts LPs, co-marketing where possible.
  • Community: Polls, feedback, LP participation.

WHERE:

  • Start with ShibaSwap.
  • Expansion to Chewyswap and Woofswap.

WHEN:

  • Immediately after proposal approval: Planning phase, community poll for pairs, prep technical resources.
  • First pools live: Within 4–6 weeks of approval (pending dev team workload and DEX coordination).
  • Review & expand: Assess performance after 2 months, decide on further pools.

4. How (Technical & Operational Plan)

Funding Mechanics & Asset Sourcing

  • Treasury address: 0xda4df6e2121edab7c33ed7fe0f109350939eda84.
  • Open question: Best way to fund new LPs? Use USDC (or other stablecoins) for initial seeding? Avoid selling KNINE if possible?
  • Community and treasury managers to advise optimal sourcing and allocations (e.g., min/max per pool).

DEX Interaction

  • “Plug and play” with standard addLiquidity functions on DEX.
  • No custom contracts at launch; basic LP provision.

LP Token Management

  • LP tokens received held in DAO multisig (k9safe.eth).
  • Tracking via a dashboard or shared spreadsheet for transparency.

Monitoring Plan

  • Track pool performance (fees, volume, impermanent loss) via DEX analytics dashboards.
  • Monthly reports/updates to DAO, with recommendations for rebalancing or exiting pools if needed.

Coordination

  • Dev Team: Manages swaps, LP creation, contract calls, dashboards/reports.
  • Marketing Sub-DAO: Promotes new pools, creates guides, shares performance updates.
  • Status meetings or forum posts for transparent reporting.

Open Questions for the DAO

  • Which assets to use for seeding? (USDC, etc.—avoid selling KNINE?)
  • Minimum/maximum allocations per pool?
  • Community suggestions for LP management best practices?
  • Should any pools have short-term rewards (e.g., from reclaimed airdrop KNINE or marketing budget), or just stick to organic growth?

5. Risks and Mitigation

  • Low Liquidity: If pools don’t attract users, the DAO can withdraw/redeploy after trial period.
  • Operational Risk: All actions taken by the Dev Team, tracked transparently in DAO channels.

6. Metrics for Success

  • Number of new LPs launched.
  • Total TVL in new pools.
  • Trading volume and fees earned.
  • Growth in unique LPs and in knBONE supply.
  • Community sentiment and engagement.

7. Budget

  • Estimated funding needed: To be determined based on community/treasury guidance and market conditions, but likely between $1,000–$5,000 USD per pool, depending on paired tokens and demand.
  • Source: DAO treasury (not from selling KNINE if possible).

Conclusion

This proposal aims to kickstart knBONE’s role as a central DeFi asset on Shibarium, not just by building the tech, but by helping people use it. It’s a small but meaningful investment to boost adoption, improve market depth, and showcase what K9 Finance DAO is building.

I look forward to community suggestions on the budget, asset sourcing, pair prioritization, and monitoring!

Let’s show the Shibarium DeFi world what liquid staking can really do!

1 Like
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I can agree K9 Finance DAO could champion 1st party tokens and 2nd party tokens, but I wouldn’t extend that effort to 3rd party tokens.

If the mass adoption is knBone pairs, which I think can be handled through the Shib ecosystem tokens, the other projects would fund their own pair to get in on the volume (we saw this during Bone Crusher’s launch period).

I understand the motivation to adopt knBone better and it’ll come with time, but funding it on our own is risk not needed.

So yes to funding Knine, Shib, Bone, Leash, Treat LPs, and SHI in the future, but no to funding or help fund 3rd party tokens.

It may sound harsh, but even with 3rd party partner tokens. To help fund could lead to “hey, we need a top off” real quick.

Just my thoughts and would love to hear more feedback.

2 Likes
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Yep, I’m with you on most of this, especially about prioritizing 1st party and core Shibarium tokens for DAO-supported LPs. That’s why I built in the poll option for pair selection in my proposal, so the community can always have the final say if/when new LPs are considered.

Yeah, that’s a real risk, if the DAO starts funding outside tokens, it could open the door for less committed projects to ask for repeated “top ups,” and that’s not sustainable or in our best interest. I see the logic in drawing a clear line at core Shibarium ecosystem tokens (KNINE, SHIB, BONE, LEASH, TREAT, SHI), and letting other projects handle their own LP seeding if they want to integrate with knBONE.

At the end of the day, my goal is just to get more knBONE pairs active and visible across Shibarium, and I think community-driven decisions on which pairs to prioritize is the safest way forward. Maybe, as you said, demand for knBONE pairs will naturally grow as usage increases, and other projects will step up and fund their own LPs when they see the value.

So yeah, i would also love to hear more thoughts on this, creative ways to incentivize the community (and partner projects) to bootstrap their own knBONE pools, maybe there are indirect ways the DAO can support adoption without direct funding, like featuring new pairs on the dApp, or doing joint promo with solid partners.

Other ideas to get knBONE pair flooding Shibarium? Bring em on!

4

The correct wallet address to be looking at for Shibarium multi-sig DAO actions is: Shibarium address details for 0x5C3d21D406226F17a06510F1CB9157BD9e751416 | Blockscout

The reason there is a different one is because Gnosis Safe does not support Shibarium & this is the only third party multi-sig that K9 DAO is aware of