The purpose of this proposal is to explore whether or not the SPS DAO would like to power down (unstake) some of it's HIVE to use for creating a HIVE:USDC liquidity position on the BASE blockchain. After initial feedback from stakeholders in the Shardholder room that indicated there was overwhelming support to do so, this proposal was created.
Proposal
If this proposal passes, the SPS DAO will take the following steps to create a HIVE:USDC v3 position with 0.3% fees on Aerodrome finance:
- Begin a 100% power down of HIVE Power in the @sps.dao account.
- Once $100,000 worth of HIVE has been powered down, stop the power down and keep any remaining HIVE Power staked.
- Bridge the liquid HIVE to BASE.
- Bridge up to $100,000 of stable coins from BSC to BASE and convert them to USDC.
- Create a new v3 HIVE:USDC position on Aerodrome Finance with 0.3% fees.
Notes
This proposal aims to help make HIVE more accessible to U.S. customers via Coinbase. While the bridges have already been built and the tokens are launched, the tokens need more liquidity. This could have some benefits and potential risks:
Benefits
- Help HIVE ecosystem with easier on and off ramp through Coinbase.
- Generate fees from trades utilizing the position.
- The SPS DAO gets 5% of any bridge fees from HIVE to EVM.
- This shows our commitment to helping to strengthen the HIVE ecosystem.
Risks
- Impermanent loss (which would be mitigated to some extent by stable pairing).
- Reduced curation and voting power.
- There's some chance that HIVE users won't care to buy or sell through the position.
and the assumption is there are 100k of stables on BSC chain? Presently just sitting there or we'll have to move them from another function? Curious.
We're in the process of selling BNB. Unless the price of BNB goes under $1,000 we'll have it.
Sounds good to me. More/easier to use on and off ramps is a big step forward.