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RE: DEC-DAI Uniswap Pool & Other Updates

in #splinterlands5 years ago

Well I took offense at the part where you said that we are doing something at the expense of the people in the ETH pool. We are doing this FOR those people specifically. DEC is a stable-priced asset (for the most part). ETH is an appreciating asset, which will in all likelihood continue to appreciate significantly from here.

Previously, people's ONLY option to earn LP rewards in Splinterlands was to participate in the ETH pool and be subject to significant impermanent loss. The system as it stands now benefits the players (ETH prices increasing brings more value to DEC prices) but it was at the expense of players in the ETH pool.

If we left it with just the ETH pool, people would continue to lose more and more ETH over time. We don't want that, so we're providing another option. Now people can choose which pool they want to participate in based on the risk/reward ratio of each.

I understand gas fees are a problem w/r/t switching pools, but there's nothing I can do about that right now.

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there is an expense/impact for rewards ... but there is a great benefit for stabilizing the asset. So I'm glad you're doing it in general.

I felt like i was answering the questions about the rewards which people were asking... but it's important to give the full context so they understand the additional benefits that impact their contributions to either pool because of the introduction of a stable asset pool.

In theory If all that goes into the DAI pool is $100 beyond your contribution then they will earn 100k dec a day. So we all hope that people are motivated to move to dai. Motivations (and expenses for inaction) are indeed part of this equation.

I assume that eventually incentives like this will motivate a sort of equilibrium or perhaps more reward to those that are on the riskier pool which sounds like the eth pool?