About
The purpose of this proposal is to explore whether or not the SPS DAO would like to reorganize some of its unproductive LPs to expand our liquidity on BASE. Currently with price impact, buying $1,000 on BASE has over 1.5% fees which isn't optimal for large buys. With BASE being the easiest on and off ramp to Coinbase for our U.S. users, it could be beneficial to the DAO to start expanding our liquidity positions there.
At this point you may be asking which LPs are unproductive and I've been closely monitoring them all for years at this point. We recently tried opening several new pools and pairing them with other tokens to see if it could have a net positive benefit on our token health and my assessment is that it has been unsuccessful and ultimately just led to us generating less fees on all of our BSC positions without drastically increasing our volume.
We've been trying this strategy for four to five months now and while I do still believe it was worth trying, we need to look at the results and be willing to pivot when things don't pan out. The good news is that if we exit these positions now, we're actually profitable, so this whole experiment was not a total waste.
As you can see from the image above, the $200,000 worth of liquidity we deployed is now worth over $212,000, but we've only earned $366 in fees over the duration of their existence. Overall the return isn't bad if you consider the heavy lifting done by the price appreciation of ETH and SOL, but the fees being earned are very minimal.
We could instead opt to use some of these assets to further expand our position on BASE to allow for deeper liquidity for on and off-ramping through Coinbase while rerouting the BSC liquidity to our deeper position that currently has over $860,000 of liquidity there which already serves our Binance oriented users.
Proposal
If this proposal passes the SPS DAO will take the following actions:
Close positions
- Close SPS:ETH position on BSC
- Close SPS:SOL position on BSC
- Close SPS:BTCB position on BSC
- Close SPS:USDT position on BSC
- Close SPS:USDC position on BSC
Sell tokens
- Sell all ETH holdings on BSC for USDC
- Sell all SOL holdings on BSC for USDC
- Sell all BTCB holdings on BSC for USDC
- Sell USDT holdings on BSC for USDC
Bridge assets
- Bridge all USDC holdings on BSC to BASE
- Bridge all SPS holdings on ETH to BASE
Expand position
- Expand current SPS:USDC position on BASE by 100,000 USDC and equivalent amount of SPS tokens at the time.
When I go to the aerodrome site, and try to do a swap to get sps, It is still not listed. I do see a sps/usdc pool when I look at the liquidity page but it has no trading volume yet. And when you go to the voting page, it is not availiable to vote for. It has been this way for weeks now. What is the point of listing on base if we can't use it?
You can use it. I've used it. You can even buy SPS on coinbase now if you have access to the DeFi stuff. Not sure what the issue is for you personally, but there's about 200k USD of liquidity in there right now and the pool works. Do you have ETH on BASE to pay the gas fee?
https://aerodrome.finance/swap?from=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913&to=0x578661e9a09eee6b2cd97d4ded1ccbae7b8516b9&chain0=8453&chain1=8453
Trying to get it to work. I will get back to you right here when i figure it out. And yes I use this site and have the Base eth to make transactions
This is what I get when I try
After you connect your wallet, use the link I dropped above as it already has the contract loaded for you. Aerodrome is not going to officially list SPS and make it searchable unless we're doing millions of dollars of volume. Basically right now we're too small for it to make sense to them.
Alternatively you can put the token contract in yourself:
0x578661e9a09eee6b2cd97d4ded1ccbae7b8516b9
putting in the address lets me swap this coin, thanks for the help
Glad it's sorted and no problem!
I can get to the same screen you do when i follow the link with my wallet unconnected and 0.0 usdc. When i connect my wallet and try to find sps, it no longer is availiable to trade and i can't find it anymore.
Got it fixed for the buy like stated above, Now if I could just vote with my veaero, we could start getting incentives for others to provide liquidity to this.
Canadian here...
Onramps are dwindling. This would mean a 4th platform change for me in >2 years. Not saying this is because of Splinterlands; Binance, CoinEx, Probit no longer do business here. It's becoming difficult to access the Hive ecosystem. So far, I have avoided Coinbase because of the huge fees but
¯\ _ (ツ)_/¯
BinanceCoinExProbitBSCI will vote no and hope for a better solution
Makes sense to me
It's a good idea to get out while you have a profit. People on Binance don't really need all those pools. They can just use BNB-SPS.
I really like the sound of this. Being able to trade SPS on base is huge and should have as small a fee as possible IMO
What if we just close 50% of these positions. That's still $100K extra liquidity to Base.
Currently the proposal seems to have 95% support so I don't plan to change anything at this point, but if the DAO decided it wanted to take that approach instead we could do so.
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