How will it work? If all cryptocurrencies (ETH, BNB and HOPR) collapse, for example, by x10, will 66% of the DAO fund decrease by x10 from the current $ equivalent?
2 Likes
Thanks! I’ll look into why the editing function seems to be time limited. We do want to prevent edits to official proposals, but people should be able to edit previous discussion posts.
2 Likes
It’s impermanent loss.
Impermanent loss doesn’t matter much for HOPR Association because they are supposed to provide liquidity as a service, kind of forever, not benefit from it.
However, if they provide liquidity in a certain pair, then there is often a liquidity providing incentive for holders to provide liquidity in that same pair. Holder care about Impermanent Loss.
The less difference in price you have between the two pairs, the better: less impermanent loss.
We expect HOPR to moon together with the rest of the market, at some point. So it is better to couple it with a strong coin that will likely appreciate too, like ETH or BNB. DAI is a stablecoin so if HOPR increases, impermanent loss will be crazy.
Hence the proposal I suggest.
It gives us the choice to provide liquidity with DAI stablecoin on HoneySwap or more volatile assets on other DEX. More variety of options to manage our risk.
2 Likes
Great, any reason to keep the proposal as pending?
1 Like
No that’s perfect. I’ve added this proposal to the official list here: PROPOSAL #5: 33% BSC, 33% xDAI, 34% ETH Mainnet - #2
2 Likes
Moving liquidity to HoneySwap is not a good idea. It will definitely dump the price. We will face the wall of sales from betatesters and there will be nobody to buy those tokens back. The only thing that keeps wxhopr to get dumped is expensive bridge to ETH network. We need to hold these tokens on xdai chain
We can move liquidity there as soon as we need wxhopr for nodes but not now.
1 Like
Why would Genesis DAO people sell the token now when it’s at it’s all time low, and just before the fun begins? Short term I have no doubt PancakeSwap HoneySwap or CEX might be a pump and dump, but long term you gain visibility and you allow people to get on a node and use the token! That’s bullish.
Right now token is dumping without HoneySwap liquidity :/
2 Likes
there is no purpose of wxhopr right now. The only thing you can do with it is convert into erc-20 token or sell on honeyswap. High bridge price is holding wxhopr token holders from selling on Uniswap. Please don’t forget that they bought wxhopr at price 5c/token and they will be happy to collect their profit.
1 Like
They will do it anyway at some point and that’s fine, don’t you think?
1 Like
For those who bought at the price of 5c/token, most likely, the commission does not matter, people just do not want to sell.
1 Like
In any case, from what I understand, your reasoning goes as follows: charge people a lot so that they can’t sell.
But you also charge them when they buy, so people won’t buy too.
Look at all the DeFi tokens that you can stake and have unlimited supply, and that you can buy on cheap DEX. People could have just dump them right? Well maybe they did but the marketing + people buying the dip + passive income made them actually moon.
Hopr is dumping now because no marketing+no way to buy cheap liquidity+no usage of token yet.
Increase usage, marketing and availability, you increase value.
1 Like
The ones who wants to buy can do it on gate/mxc which is almost free.
I got my point absolutely right. We should make some barriers for ones who want to sell. That bridge has prevented immediate dump after token release or at least stretched it over time.
1 Like
Well it still does. Of course we can’t prohibit them from selling their tokens but we should make this selling wave more stretched out over time
1 Like
I couldn’t have put it any better. I think your proposal is practical. I especially agree with the inclusion of PancakeSwap that will get us the Binance Smart chance but why not reduce the allocation for PancakeSwap so we can get on 1inch too ? What do you think? I think it would be a good idea to get on another big DEX on the Ethereum network.
Hi, great that you like the proposal.
Like it here so it goes to next stage:
1inch is cool! They also have a BSC DEX. I do not have strong opinion for the number of dex/chain, the liquidity pair provided or the %.
I mainly think HOPR should be on at least one DEX on Mainnet, one of xDAI and one on BSC.
Personally I am good to make compromise and follow what people will pre-agree upon here:
1 Like
Ah, I see you are right! I hadn’t noticed it before, but now I see DAI everywhere on BSC!
1 Like
how can anyone vote for this? how do you imagine a pair to BNB or ETH ? will the team need to exchange Dai for BNB or ETH ? At what rate and for what purpose? Now at least one of the components of the Hopr/Dai pair is a stable coin. What will happen to the hopr rate on such a fall as now if there is not a lot of liquidity to a stable coin? do you think people will sell hopr for the same ETH falling into hell ? and if you need a constant conversion rate, what is the benefit of such pairs? I am against even discussing such proposals.
Your message shows lots of misunderstanding as to what providing liquidity means, and also on impermanent loss.
I’ll try to clear them.
1/ whatever the pair you choose, anyone will be able to swap any token to HOPR. Right now, you can already swap ETH to HOPR on Uniswap even though liquidity has been added in DAI/HOPR pair. That’s because when you swap ETH the Uniswap “Router” routes it from ETH->DAI and then from DAI to HOPR. It is transparent for end users. The only important thing is to provide HOPR with a pair that is already very used (“liquid”) in the DEX. Both ETH and DAI are very liquid on Uniswap, so both are ok. Similarly BNB is very liquid on Pancakeswap (much more than DAI) so it’s fine.
2/ impermanent loss. You want USD value of both coins to move together and not diverge from each other, so you don’t loose in USD value from what you’d have earnt if you just HODLed the coins. It’s a complex topic, take the time to read about it.
I believe BNB/HOPR and ETH/HOPR will be more correlated than HOPR/DAI in the long term.
3/ it’s actually better for HOPR Association to buy Eth/Bnb with their DAI now as the market has plunged (of course it can plunge even more - but it is for long term anyway…)
are you sure you read what I wrote ? don’t try to show how smart you are by talking about basic things that everyone knows. I will once again explain my position to you. we now have two assets-hopr and dai. all your pools with eth and bnb mean replacing dai with these assets, which is a purchase. and most importantly, why do all this? do you buy assets yourself with eth and bnb, or do you buy them with stable coins? in the end, most people want to earn and buy something, and they do it for USD. so why do you want to exchange dai for eth or bnb? so that then people once again pay an extra commission for the reverse transfer to stable coins? this is your suggestion and your opinion, but I fundamentally disagree with it and I hope now you understand why.
Sorry I don’t understand, to me your messages are not clear at all. Could you elaborate?
I don’t try to “be smart”, stop personal attack please. Maybe I misunderstood your message, but my intention were not personal against you, I genuinely thought you had some misunderstandings that I tried to address, even after you said “I am against even discussing such proposal”.
I don’t have strong opinions, it’s just a DAO proposal anyway.
No need to be so offensive, take the chill pill.
If you don’t like the proposal, just pass, it’s all fine.
1 Like