Do not forget about about the impermanent loss. Obviously, huge price fluctuations in the crypto market are waiting for us in the near future, and even in fact it does not matter in which direction they will be.
A pool is maximally profitable only if the prices of the assets at the time of closing in it are sufficiently close enough to the opening price
But from historical experience, we see that HOPR practically did not correlate with Etherium in the previous growth segments, nor did it correlate in the previous fall segments. Which is easy to verify.
If it were simple enough to create a pool with ETH or say BTC and the asset price would start to correlate, then I think everyone would do so and we would see the same or strongly correlated charts on all assets. But obviously, this is different from the current reality
In addition, we have a pair of HOPR/ETH on gate.io . And there the trading volume does not exceed 5k$. So I don’t see an acute shortage of liquidity in this pair.
Such a pool will only create opportunities for arbitration and earnings on it. But this earnings does not appear out of thin air, it is paid from the pool. And high commissions within the etherium network will prevent smaller retailers from fully using this pool.
I think that the losses inside the pool will exceed the positive moments that it will bring. I think it would be more rational to direct these funds to the development and promotion of the project, as well as to expand the provision of liquidity by supporting proposals 1,2,3.
I think it will be possible to return to the discussion of creating such a pool when the project starts working as a product and becomes an integral part of web3
I think this is a reasonable suggestion. Suitable for lovers of ETH, not stablecoins. $500,000 is the optimal amount, no more. I would also suggest introducing a pair with USDT in addition to or instead of DAI.
We may keep 50% of the liquid on this. Most active users are still on Ethereum chain. The rest of the liquid will be converted to HOPR-xDai pair on Uniswap on xDai chain
So, apparently I was misunderstanding the size of the liquidity we are talking about this time.
We are only talking about 15% of the current HOPR-DAI liquidity on Ethereum, which is a much smaller portion than I initially thought and changed my view.
I strongly support the proposal 1 (SushiSwap) and 2 (Swapr). There is no question that we need more liquidity on GC.
As for the proposal 3 (Uniswap), I basically support this but I would suggest to use the portion of the $500,000 in liquidity either to add more liquidity on Sushiswap and Swapr or keep it in the current LP until Uniswap on GC is finally implemented.
I am also in favor of the proposal 4, however, I would be careful how it affects the volatility of $HOPR. I am an amateur in DeFi and have no idea how much it would have an impact. But since one of the main functions of $HOPR is as utility token for the HOPR mixnet, high volatility would negatively affect the HOPR mixnet users. In such a case, we might need to consider creating another token for that…
There is a problem with a HOPR - ETH pairing in that you pay capital gains tax twice. This would be for any gains in HOPR and when you cash out into ETH there would be a further tax implication. The xDAI option due to its peg is a better option based on tax liabilities, but as the major section of the retail herd uses fiat and stable coins such as USDT/ USDC / USD, etc this would be a far more effective on board ramp to increase the demand for HOPR tokens and therefore an increase in price longer term.
eth should be considered as an intermediate link in any token exchanges via uniswap. on the gate, this will naturally not be noticeable. but for uniswap, this will significantly reduce commissions and increase exchange options
Concerning the discussion of ETH->DAI->HOPR swap route, decreasing the liquidity, and the high gas fee in this proposal, here are my opinions. I have a feeling some have a negative feeling about this proposal because of some misunderstandings. (I myself might be misunderstanding too. So, please correct me, if I am.)
High gas fee
HOPR is mainly existing on Gnosis Chain. Once we add more liquidity on GC suggested in the other proposals, we can trade $HOPR in a more stable manner on GC where the gas fee is much lower. We can now choose not to use Ethereum to swap HOPR unless you are an arbitrage trader or running a bot.
Is there any tax applied to HOPR DAO?