RE: Convert BUSD DAO holdings into DEC-DAI LP
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Thanks alot for your vote, every vote matter’s. :) to you point no matter if i agree or not, as i discussed it with some community members this is not obvious decision for all members. Some dont want the DAO to hold DEC at all, and some like in you case would love to convert 100% into DEC.
My answer to it is: „its a compromise“ this way bouth groups should be happy some DEC is bought and also the stable value of a stablecoin is held. The important goal is achieved. -> Get rid of BUSD.
There is already a DEC-DAI Pool an Ethereum the important thing is that compared to other pools its still small. I tried to swap 10k USD in DAI and i would lose almost 500 USD because of price impacts.
Also i would like to add, most of the thing's cost DEC to buy ingame and not SPS, thats the reason we should stick to the DEC-DAI pool and not use another because the simplest way to buy stuff (especially expensive stuff) is to buy DEC and move it ingame. Compared to SPS that you would need to swap somehow for DEC (mostly hive-engine) tus adding an additional step.
And for your last point, impermanent los should be that bad, this is a stable pool so way lover risk then other pools paired with volatile assets. And this could also go in our favor. If the DEC price rises we get more DAI in our position.
Thanks for the response. I 100% expect this to pass so I appreciate the effort to talk about it with a lone dissenting voice.
I worked out the math on the impermanent loss and you're right. We'll probably only lose about 3-5%. That makes me feel better about that. I do think it is critical that we get out of BUSD asap.
I wish I understood the objection players have to the DAO holding DEC. Its not like the DAO isn't already holding multiple other coins, but again, you're right. There will be objections to that.
So my last issue is really my first issue, but until DEC hits peg, the whole burning SPS thing doesn't matter anyway. That makes it simply philosophical whereas the DEC pool right now would help some people bring money in (or take it out).
OK, I'm changing my vote. I still don't love it and would rather any of the other options I stated but I do want this money out of BUSD ASAP.
Thanks for doing the math on the impermanent los, i know it should be that bad but i hadn’t the correct numbers on hand.
Yeah same, i just want it out BUSD, and with this i think i could get a fast consens.
Thanks for taking the time :)