Deploy a Uniswap V2 fork to every chain we go to

Bloomberg: “absolutely brilliant idea”
Times: “chad move!”
CNBC: “big brainers”

Proposal: Deploy a Uni V2 fork to every chain where we go. Preferably use Coingecko token list. Preferably have swap interface on the same page as farms, just below the farms.

Rationale: I see a big potential in deploying Uniswap V2 without the fee enabled. On each chain there are forks with the 0.05% fee enabled. It is a large fee. In returns protocols are giving liquidity mining rewards but these protocols are dying. Sushi, Quickswap, Traderjoe will eventually die and the liquidity mining reward will be lower than the confiscated 0.05% fee
There are no V2 forks without the fee enabled because everyone is grabbing that free money! Even Uni is forcing everyone to use V3 and removed V2 from the interface on Arbi and Optimism.

Proposal: Deploy Uni V2 and promise to never enable the fee.

Benefits: large publicity. Since we’re going to many chains, users will know that if they want to have liquidity without fees, PickleSwap will be there and always without the fees. Maintaining the interface will be easy, it can be forked easily. It comes at no cost to us and could be a massive success.

Why users need V2? Existing V2 forks have fees enabled and the rewards on these are dying. Just In Time type attacks don’t work on arbi and opti but will probably work in the future. V2 uses less gas. Is more battle tested and possibly more secure. If one day V3 gets REKT, PickleSwap could be the most robust and secure AMM in crypto. Mindblowing!

This proposal works very nicely with the DegenZone farms getting deployed to all chains. Our interface and code will be present on all major chains like Sushiswap. But with 0 fees :slight_smile:

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There is currently a market hiatus on Arbitrum and Optimism with no V2 fork that does not take 0.05% fee.

Sushi gives almost 0 rewards on Arbitrum but collects the 0.05% fee.

When Uni enables extra Uniswap protocol fees on V3, PickleSwap could gain a lot of popularity. Massive publicity for free!

0 fee swaps are the future of defi
Instead of pretending that 0.05% fee is the future or that V3 is brilliant, let’s face the future - defi protocols with 0 fees will dominate at some point in the future. We can capture this dominance at almost no cost

facts:
MIM deployed arbi farming on Sushi, Sushi got a lot from the 0.05% fee and provided nothing in return, did not offer any significant sushi rewards

In presence of PickleSwap on Arbi, they would have possibly launched on PickleSwap

There are other farms on Sushiswap that get no benefits. They will happily migrate to PickleSwap to make it more profitable for their LPs

V3 liquidity mining is bad
gives rewards for current price LPs, does not reward tail end liquidity providers

this breaks the incentives, there will always be demand for V2 type providers and rewards through the currently popular masterchef contract

let’s address the demand and copy-paste Uni V2

I’ve god a lot of replies on Discord and nobody believes that a 0 fee exchanges will dominate Defi. I have expanded my thesis in this writeup:

Theses:
1 there will be large demand for exchanges with 0 protocol fees (0.05% sushi fee, Balancer and Uni V3 fee currently set to 0 with plans to be enabled in the future).
2 the exchange interface will not be a moat. Currently you lose money if you are not using aggregators. This will get more exacerbated in the future with coincidences of wants. Nobody will use single exchange interfaces. Everyone will trade through 1inch, cowswap, matcha, paraswap, metamask swap. Majority will not know or care that they are trading on PickleSwap.
3 if your product saves users money, you don’t need to pay them to use it or boostrap it. Arguing that users will not save money by using your free product is like arguing that Linux should have failed because it has not been a pay-to-play ponzi. Just because you see Uni V2 fork bootstrapping everywhere and you’re getting rich, it does not mean that these forks will last.
4 there is nothing wrong with Uniswap V2. It has many benefits over V3
5 Forking uniswap (preferably with a 1% and/or 0.5% fee) and deploying it to chains that we support will be worth the effort. Users will provide liquidity on Pickle.finance and learn about us. This will give us a lot of publicity and legitimacy.

What everyone thinks:
DeFi is all about ponzis. I want to enter a ponzi early and sell higher. V2 fork with no fee is not a ponzi, this does not go 100x up so I don’t want to hear about this. Users are happily paying Sushi 17% of trading fees, often for nothing in return and will always want to pay 17%. Trader Joe, Spooky, Cherryswap have always redistributed free money from VCs to myself and they always will. These rewards will always be large and the stream of money will never stop, because there will always be someone willing to fill my pockets with money.

Benefits of V2 over V3:

  1. V3 is incompatible with the masterchef contract which rewards long tail liquidity providers (V3 rewards are unfavorable for long tail providers in full range)
  2. it is not susceptible to just-in-time attacks which are hard to mitigate (even if you require 1 block LP, they will be possible but will carry extra risk)
  3. will not be susceptible to a V3 fee going to UNI holders that will be turned on in the future
  4. will not be susceptible to regulatory requirements put on Uniswap (already investigated, Uni already removed mstonks from V2 interface)
  5. safe and battletested for years with billions
  6. lower gas (less important for now but Arbitrum One will likely be expensive in the future)
  7. much easier to use, newbies must be confused with V3

What is likely to happen if we deploy a V2 fork everywhere:

3 months timeframe:
A handful of protocols will launch their pool2 mining on PickleSwap, for example a few of these: LYS, OMC, ARVAULT, NYAN, Z2O, Arbis, FLUID. Their users will go to pickle.finance to deposit liquidity and their own protocol website to stake in a masterchef contract like on Sushi. They will trade on PickleSwap or through an aggregator. A few guys will provide PICKLE/ETH on PickleSwap and it could become the biggest source of PICKLE liquidity once exchanges stop giving us free money for using them. Aggregators add PickleSwap to their offering since it’s a big liquidity source for $PICKLE.

6 months timeframe:
Nobody trades on Uniswap, Balancer and Sushi interface. 90+% of trades goes through 1 inch, matcha, cowswap, paraswap.
As liquidity mining rewards from Sushi/Spooky/Traderjoe go down, users will get increasingly frustrated with the 0.05% fee. Some will start providing ETH USD and BTC on Pickleswap.
Balancer and Uniswap V3 introduce a protocol fee (between 0.02% and 0.05%)

1 year:
Farming yields go down, trading fees go down. Many users leave liquidity provision as the fee revenue to impermanent loss ratio goes down. LPs start looking for marginal gains everywhere to avoid Sushi/Balancer/Uniswap fee. Only one such exchange exists: PickleSwap. They start fleeing to us.
Large proportion of volume goes through PickleSwap but majority of users have no idea. Small proportion of users know they trade on PickleSwap. Liquidity providers deposit to PickleSwap on pickle.finance. The have high regard for Pickle for offering 0 fees forever. High legitimacy and publicity brings us loyal users on PickleSwap as well as on the Pickle Farms. Great combo - you deposit liquidity and on the same website you can stake it in a farm…

Extra flavors:
-ComethSwap has 0.5% uniswap fee. We can have Uni V2 with a 0.69% fee. Or 1%. Or offer a few tiers once it’s obvious that everyone trades on aggregators.
-Vitalik, Hasu, Eric Wall and others give us a nod for providing free infrastructure.
-We announce that we’ll fork Uni V3 69 seconds after the 2 year grace period on the license expires.
-if Uni V3 gets REKT we have a chance of becoming the biggest exchange in DeFi

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Interesting thought:
If we deploy a V2 fork, we don’t need to have the traditional V2 front facing interface.

As we gather more volume through the COWswap frontend on ETH, we could deveop further our partnership with COWswap, and every time COWswap deploys to a chain, we’ll be there already, and we swap the traditional UniV2 frontend for COWswap frontend.

As a result, the PickleSwap frontend will get the best price possible across all exchanges with near-0 effort.
COWswap will feel obliged to add PickleSwap liquidity to the list of supported exchanges despite initial TVL and volumes being pathetic.