Liquidity Pools for Cards - Could this be a new way of price discovery
In 2018, only a few blockchain games were available. When I searched for suitable games on the Internet, I only found Axie Infinity and Splinterlands. The second one I then dedicated myself and do not regret this decision to this day. After a while I searched for more projects and the game Skyweaver came to my mind. This is also a card game similar to Hearthstone, but it is based on the blockchain and you can sell and own the cards just like in Splinterlands.
After a few tries, the game fascinated me a lot and I still like it to this day. Especially the gameplay is very mature and makes every card player really pleased. But that's not the reason for this post, I'm mainly interested in how the game and the ecosystem of buying and selling cards works. Because they use a different model than most other games.
The economy of Splinterlands is much more mature in my eyes, but there is one point in Skyweaver where we can learn something from. This is that they also use liquidity pools for the sale and purchase of cards. At first I found the principle really absurd because I asked myself, "Wait a minute how can you use these in-liquid assets in the liquidity pool approach?"
This was very strange to me and I thought why should one do such a thing? After a few weeks of thinking and pondering, it occurred to me that it can make sense to use liquidity pools for in-liquid assets as well.
Why build something like that for Splinterlands?
In this article the developers describe how their economy or liquidity pools work. (https://www.skyweaver.net/news/market-overview) In short, it is based on the protocol like UniSwap or DieselPools on Tribaldex the same model but here the cards are paired using stable coins like USDC or in our case DEC.
In view of the fact that also in Splinterlands the idea was possibly already communicated by @yabapmatt that they want to use resources generated by land also be bought and sold in liquidity pools and maybe even paired with DEC, I thought that would also be a cool alternative for the purchase and sale of the cards. If you could extend a system or add a new Smart Contract on Hive Engine so that also the Splinterlands cards could be paired as liquidity pools with DEC you would have some cool new features and advantages to offer.
The advantages that comes to my mind would be:
- You could put the inactive cards into the liquidity pool and get some fees. This would be a way to generate returns with your inactive cards outside of renting them out.
- Furthermore it would be possible to find a better pricing for in-liquid cards/assets by pairing the cards with DEC it would be an arbitrage possibility there. If the cards were too cheap or too expensive in the pools people would either sell that into the normal market or buy too cheap cards and then add them to the liquidity pools.
- Thinking even further into the future, this protocol could also be used to loan credit for you cards, as they could be liquidated immediately. if the cards were to lose value too quickly, or if the borrower stopped paying interest, or if the credit limit was not covered. All this could be nice DeFi inside of Splinterlands.
Who and how would such a person develop this.
Since I do not know how far the development of Land has progressed, I can well imagine that such a system would have to be developed anyway for all Land resources. If you could already use some work for this liquiditypoool for cards system, it would certainly help the development of land.
But at the moment I still have some open Questions:
- would such a system be useful at all?
- a possible implementation i think could be done i guess with some assistance from the team this could be developed for sure if something like this is already planned for land this could be added as another feature, the question is who would develop something like this i think this could be a good argument for a DAO project.
- it would also be interesting to know who would provide you with the initial liquidity for the cards and at what price.
- also still unclear would be could you provide only level 1 cards as liquidity or would you have to provide even always only max level cards since you could otherwise not select what level of the card you want.
I would be happy about an exchange and brainstorming if someone of you they could also imagine how that would look and whether such a proposal would be accepted in the community.