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RE: SPS Governance Proposal - Restructuring DAO LPs

in #spsproposal4 months ago

https://debank.com/profile/0xdf5Fd6B21E0E7aC559B41Cf2597126B3714f432C

You can check the pool in question at the link. #1250953

What happens is it only has one token when it goes beyond that range. This actually happened with the other DEC:USDC pool when DEC fell below peg. We had a position with millions of DEC and no USDC. In short, it could only sell DEC, not buy.

We have a pull that can only buy DEC (for 0.00083) right now. It has no DEC to sell.

Having a pool from 0-0.00101 means that it has liquidity to buy or sell DEC all the way up to 1% over peg, then it can only buy DEC. You end up with 200k buy pressure which makes it harder to drop far from peg.

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Good context and appreciate your time explaining. Looks like I have some more learning to do :)