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RE: Gauntlet's report on Thorchains use of slip-based fees.

in LeoFinance • 5 years ago

Decentralization and income earning equality

I can see how making it more profitable for liquidity providers to be on Thorchain with this key difference, combined with the reduction in impermanence loss at least in theory and the removal of the need to wrap your tokens to participate is a winner. More in my blog...

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5 years ago in LeoFinance by
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     5 years ago  

    The key is making this higher profitability for LP's sustainable. I think that will be a big difference between Thorchain and some of the defi copy-paste projects popping up. A "governance" token that shows a short term massive APR, but is practically worthless in a short time due to huge inflation is a very unsustainable model.

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     5 years ago  

    True. Traders will have to “Buy-in” to the importance of security in cross chain swaps and Investors in Rune coin will have to believe the project has a future and as you say, is sustainable. I am unsure if just favoring the Liquidity Providers will be enough, but it’s going to be an interesting experiment.

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