This draft has been approved by all members of the SPS Foundation board unanimously.
Purpose of Proposal
It was brought to my attention a few months ago that the service the Splinterlands team has been using to track account balances in the SPS:BNB pool was going to start to charge for API access. We've been trying to make it work by using some makeshift solutions, but ultimately it's come to the point that we're either going to have to start paying for access to monitor the wallets in the pool so that we can calculate the rewards or we'll need to turn them off.
The DAO is already providing about $750,000 worth of liquidity for SPS:BNB, so we're arguably creating inflation to incentivize a pool that actually hinders the DAO's earnings on it's largest LP position. Couple that with the fact that we're going to also have to start paying a $100-200 a month in service fees to do that, it seems reasonable to assess whether or not the DAO wants to continue providing the LP rewards. If it does want to do so, we'll need to make a proposal to cover the cost of that service.
Proposal
If this proposal passes, the SPS DAO will stop the incentives that it is currently paying for users to provide liquidity in the SPS:BNB pool. This will reduce monthly SPS inflation by 400,000.
good proposal, seems like the pool isn't worth continuing to me but could be convinced otherwise. Do we think many people onboard money through bnb?
Oh they definitely do, that's why the DAO has 750k deployed in SPS:WBNB already. If the incentives are removed, some people will probably pull liquidity from the old v2 pool and that's okay. We already have the backup in place.
What's the liquidity like on PancakeSwap? Not sure if this pool is needed, if there is another way.
This v2 pool is around $250k, the DAO has a v3 position with over $750k already deployed.
Sounds like you're well prepared. Thank you!
I think an easy way to get funds from BSC to HIVE is valuable.
But also, Monster Market bridge is valuable for this.
Anyways, not sure if we need the incentives, but I think having liquidity is important.
Just to be clear, the DAO has 750k USD worth of liquidity in a SPS:WBNB v3 position on pancakeswap. This proposal is only to remove incentives from the old v2 pool, so if the liquidity in the v2 pool drops too low, the AMM should just prioritize routing through the v3 position for less slippage.
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Solid prop. Why bother with v2 when we have v3 liquidity already.
As long as we maintain support for SPS through BSC, then I'm good with whatever works best for the SPSDAO!
The proposal is sound. Reducing monthly inflation should be a priority. Other ways to reduce inflation should be explored.
We need tariffs against other blockchains! We've been getting ripped off left and right, terrible deal, yuge mistake, the only way forward is to tank the global economy!
This doesn't have anything to do with the bridges, it would just stop printing tokens for holding liquidity in the old v2 pool and most likely lead to more trades routing through the v3 position the DAO has with triple the liquidity depth.
The bridge and the pool are separate things. The DAO may launch its own bridges and then it can set the fees itself, but that's a whole separate issue than what's being discussed in this proposal.
The DAO has over 750k liquidity in a SPS:WBNB v3 position, which is 3x more than what's in the v2 pool. Shouldn't really make much practical difference on a 8k trade as you were likely using the v3 position to buy from anyway. The smart router determines the best rate, which on an $8k trade would very likely be the v3 position as it has deeper liquidity (less slippage).
Maybe grok can explain it better than me:
Well, unless we're going to start paying a monthly fee for API access, we pretty much have to make some change here. If you can find some funds I don't know about that the DAO owns to put in the liquidity pool let me know. We have like maybe 100k we could put in tops and we more or less need that to pay for the developers the DAO hired, so it kind of just is what it is at this point. I really don't think it's going to make much practical difference on an $8k trade though. Maybe a few bucks plus or minus. With a 750k position you should be able to buy 7,500 in one clip with a 1% price impact.