In my understanding, the goal of this proposal is to mimic the Savings APR mechanism which should let liquidity providers earn interest without keeping their HBD on saving accounts (and thus allowing them to provide liquidity on the stablecoins pair). Am I right? If so, I don't like the idea as there is already an incentive offered by the pool itself.
You are viewing a single comment's thread from:
The point's not providing an APR to liquidity providers, it's more about 'incentivizing' a pool that will tighten much better the HBD peg.
For example, right now a simple 1000$ swap carries a 1-2% slippage, which is (if you allow me the expression) laughable.
We'll never attract enough liquidity without incentivizing it, and after this step is done, the black hole will just keep feeding itself.
More liquidity -> HBD peg tights -> HBD gains utility (as a 'better' stablecoin) --> more eyes on us & user expansion --> more HBD printing -> More liquidity -> (repeat)
We'll need more liquidity in orders of magnitude to make HBD work properly. This proposal is only a starting point.
Additional benefits:
These are a few but surely I'm missing some. Bihg thank your for your work on the HIVE ledger app @engrave :)
i write a longer post on that in terms of internal market V2. Onchain pool.
If you like you can look at it: https://peakd.com/leofinance/@urun/hive-defi-pool-internal-market-v2--urun-post-about-this-again
I bring that topic up from time to time because that would be mindblowing. But devs told me already, no developer recourse left to build it.
So the only thing i can do is post all couple of month again :D
HBD listing we desperately need! This is an underrated point!
I think hive as a network profits the most from that. IMO savings are worthless for the network.
Liquidity offers value. An onchain pool between Hive and HBD should be also offer way more value then pay simple savings.
We already have an internal market to trade HIVE/HBD.
Impossible to trade larger amounts.