[Proposal] Remove SHARE-USD pool to improve USD burning efficiency

This post is to understand the use of SHARE-USD pool and propose a solution to what i think is a problem causing inefficient USD burning, which does not affect USD price much.

I see one problem with SHARE-USD pair.

Current SHARE-USD pair is just used to sell the SHAREs received after burning USD to get more USD.

That basically means USD holders burnt some USD and taken out some extra USD from that pool. i think this pool is owned by the protocol/robert so it basically means USD supply is increasing instead of decreasing (increasing in a sense that locked USD coming out from that pool). i think its inefficient as it does not affect the price much and there is always a chance that extra USD can be dumped to get ETH or something else (which has downward pressure on USD price).

But if there is no SHARE-USD pool and only SHARE-ETH pool then when people sell SHARE to get USD uniswap should route like SHARE-ETH-USD. so it will pull out USD from ETH-USD pool which should push USD price higher and it will keep decreasing USD from that pool then moves to other pools lke SHARE-ETH-LINK-USD, SHARE-ETH-YFI-USD etc. so USD supply will go down from the pools which should affect the price for sure. if USD is taken out from a pool then selling the same USD should not give much return. so people may choose to hold instead of selling.

So i propose SHARE-USD pool to be removed and SHARE-ETH pool should have similar mining rewards as ETH-USD pool to increase SHARE-ETH pool liquidity.

Its my thoughts, let me know what are your thoughts about this?

If SHARE-USD pool can not be removed because of its utility then please let me know what do you think is the utility of SHARE-USD pool.


but removing it currently will cause one problem. thats SHARE-ETH pool does not have enough liquidity.

burn will only be effective if SHARE-ETH pool has enough liquidity. so i am not sure how its liquidity will increase. may be we need to add few eth liquidity to this pool.

number of ETH in this pool will keep going down and number of SHARE will keep going up during the USD burning process. so the value of ETH from this pool will move to other pool which will provide USD. but not sure how many ETH of liquidity you may need to drain out enough USD from the pools to push USD to peg.

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As far as I know from what Robert has said, this pool only serves to allow share USD trading. But since uniswap doesn’t use this pool as first resort it’s effectively useless.

I agree we should remove it.

Worst case we just put it back if things get worse. It’s made up of share USD which are coins the protocol is totally in control of so burning it and or recreating it is straight forward

Yes, i agree with you. it can be removed and if required added back later.