[Proposal] Remove liquidity from SHARE-USD pool

Summary:

Its been a pain to pay two gas fee to buy or sell SHARE.

Problem:

To get best rates for buying/selling SHARE one needs to do the following:

for buying SHARE from USDC
USDC-USD
USD-SHARE

for selling SHARE for USDC
SHARE-USD
USD-USDC

USDC is just an example.

So one need to pay gas twice to get best rates.

Considering high cost of gas, its double expensive for small investors to get SHARE.

Solution:

Remove liquidity from SHARE-USD pool and improve liquidity of SHARE-ETH pool.

Pros:

  1. pay less fee for buying or selling SHARE.
  2. with more liqudity on SHARE-ETH pool burning USD will be efficient. see: [Proposal] Remove SHARE-USD pool to improve USD burning efficiency

Cons:

  1. Liquidity for SHARE goes down initially.

Other Details:

SHARE-USD pool is not used by uniswap directly. Liquidity in this pool are created by protocol (so its coming out of thin air). may be thats the reason its not being used by uniswap.

@Robert said anyone can create SHARE-USD pool as creating pool is permissionless in uniswap. so i said let them create it as for creating a pool they need to buy our tokens. it helps if others buy tokens to provide liquidity. i think no one will create a pool if its not used by uniswap.

@Robert said This pool is used for calculating SHARE price and he said he can use SHARE-ETH pool to calculate the SHARE price if this pool is removed.

@Robert said this pool is immutable. but as i know liquidity from that pool was adjusted recently so removing liquidity from that pool is possible. so i suggested that we remove it and try improving liquidity on SHARE-ETH pool and see how that works out. if it does not work well then he can put the liquidity back to SHARE-USD pool.

SHARE/ETH requires ETH. Who is going to put up the ETH to provide liquidity? You still need a USD/SHARE pool to swap between the two.

ETH-USD and SHARE-ETH pool should be the most important pools. Rewards can be increased to get more liquidity.

You don’t need this pool for swaping USD-SHARE or SHARE-USD. If this pool is not there then it’ll route like USD-ETH-SHARE and SHARE-ETH-USD.

More Importantly Liquidity in SHARE-USD pool is coming out of thin air. May be that’s why burning USD has not been that effective.

Guys you can use the furucombo dapp to make a multi legged uniswap trade in one transaction
This becomes a non issue then

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Its not a good thing to expect people will use a third party solution to swap your tokens.

I think DP is first party uniswap is second party and anything else is third party. It’s uniswap which provides functionality to create pools and do trades. Most use uniswap to trade.

Furocombo is also using uniswap. So it’s better to let users stay in uniswap and avoid furocombo if that’s avoidable.

and more importantly this proposal is a combination of other things too. like

  1. decrease gas fee
  2. remove a pool where both the tokens can be created from thin air.
  3. removing it should have better price impact when you burn USD.

There is no other reason to use this pool except calculating price of SHARE token. thats achievable with SHARE-ETH pool too.

I am just asking to try it out. lets remove liquidity from SHARE-USD and see how it works. if it gives any problem then it can surely be added back later.

You never answered my question on who will provide SHARE/ETH liquidity.

I said Rewards can be increased to get more liquidity into this SHARE/ETH pool.

Who provides liquidity in other pools and why do they provide liquidity? its because of rewards they provide liquidity. so increasing it should help getting more liquidity into the pool.

Its people who will provide liquidity if there is more rewards.

2 Likes

Bad thing - you dont benefit from positive rebase in ETH-SHARE pool. Hard to incentivise people to stake there.