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RE: SPS Governance Proposal - SushiSwap Bonding Protocol Launch Partnership

in #spsproposal2 years ago

. The only yield those buyers would get is the 5% discount.

and if I understand this right, the buyers of the bonds get a 5% discount for 30 days and then they can get out. If so, then that means we are back to no liquidity unless we do another bond for another 30 days.

Is this correct?

For your understanding, I am drilling down on the sustainability of this model. I do love the idea that we stop paying liquidity fees to the LPs at some point, but I really don't understand how this will incentivize money to stay invested in the LPs.

My read on it is that we will get people to buy the bond for a guaranteed 5% for 30 days, then they will cash out (I would too). From there I think we got liquidity for 30 days, but then we lost the liquidity after the 30 days. So I see no sustainability at all.

Again I'm not upset or anything, I really can't see where this gives us a sustainable model at all. In fact it seems more expensive than what we have currently.

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I think we addressed this on Discord, but to try to clear things up here...

The buyers get literally nothing but the discount on the tokens they buy. If they buy 100 dollars worth of SPS, $95 is proceeds which goes into the liquidity pool, Sushiswap would own 5% of those proceeds and the DAO owns the rest, let's call it 90 cents on the dollar after everything is said and done.

There is no ongoing commitment from the buyer. After 30 days they can do whatever they want with their SPS. The liquidity is owned buy the DAO, that's what they use to purchase the discount tokens. The DAO is free to do whatever it wants with the liquidity that it is essentially buying with SPS.

yes we did clear it up on Discord and I appreciate you clearing it up here too Clay. Thank you!