The Debate: Liquidity Concerns and Potential Solutions
Remember when I mentioned a proposal about using the interest from HBD savings to buy DEC? I lost track of it, but it's resurfaced and I've got the full details now.
Splinterlands has a significant amount of BUSD holdings, and there's a plan to move these funds. Some have suggested using the BUSD to buy DEC, providing extra liquidity to the DEC market and potentially helping to peg DEC. Alternatively, there's Hive's HBD, which offers a 20% APR when saved in Hive's savings system.
The stakes; $HBD or $DEC
This seemingly straightforward decision has sparked considerable debate. If asked, I would instinctively opt for HBD, but it's not that simple. Here's what happened next…
Yabapmatt objected, citing the thin liquidity and potential negative implications. This issue has been known for a while, and @edicted has frequently emphasized the need for a decentralized AMM on Hive's internal market with Hive and HBD pairing.
People could provide liquidity and earn Hive in the form of fees or payments from the DHF. The interest from HBD could help peg DEC sustainably if properly directed. However, the lack of liquidity and a liquidity market is a deterrent. This has led the proposal down the path of rejection, prompting my rant.
$HBD wins $Hive wins
It may seem like a big ask, but solving this challenge would be a win for Splinterlands. They could raise a proposal on Hive, hire the best minds for this specific task, hold a public discussion, and implement a solution. If successful, it would be a significant breakthrough for crypto, powered by Hive. A win for Hive equals a win for Splinterlands.
The idea is excellent, and many people know it. But because we lack the optimal solution to implement our tools, it's suddenly a bad idea? Are we going to abandon this?
I understand that Splinterlands has other priorities, but this issue is too important to ignore. I propose we put all other developments on hold until we fix this. If they truly believe in Hive, they should take this seriously. I know Yaba and Aggroed do, however majority of the community haven’t really grasped the concept of HBD and Hive, hence the loud skepticism and reason why the proposal seems to not be passing.
So are we going to abandon this idea and miss out on potential businesses that could benefit from this solution? Have we forgotten that a win for Hive is also a win for Splinterlands? In any case my hope is that if this proposal will be rejected, it should at least be replaced with something better, compulsorily.
In other news it seems the SPS multiplier system from ranked battles have ushered in some level of excitement that is reflecting on the price of $SPS in the past week, as more people try to increase their level of rewards, they need to accumulate and stake more SPS or rent from someone who has but it’s quite an interesting sight to watch the price of SPS gaining some upward momentum. The hope is that it is sustained. My fingers are crossed to see the next sets of changes in developments. May the out come be the most favorable one.
Thanks for reading.
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this can be a good option to improve dec token price so I look forward to see it happens
I also look forward to seeing it happen. It’s our best bet
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