It's time to increase protocol HDX liquidity

10mos ago

1 Comments

Content
AI Summary

I believe it's time we increase protocol owned HDX liquidity.

I intend to submit a proposal but want feedback on how much, if any, others think is appropriate. My current thinking is to increase protocol HDX liquidity by 50%.

Reasons to increase:

Attract larger investors
Increase volume to market cap ratio
Reduce volatility
Attract CEX listings
Omnipool is advertised as deep liquidity ocean

Reasons not to increase:

Creates exit liquidity
Reduced price increase per dollar invested
Treasury will lose HDX

Please leave me your opinions in comments.

Additional note:
I think HDX should be valued much closer to ASTR. Current 2% slippage for ASTR on Binance is $200k-$400k. If HDX market cap was magically increased to ASTR level without removing any HDX from omnipool, our 2% slippage would be about $200k. So we are not too far off from where we need to be, but we need to account for HDX that will be drained from the omnipool during our journey to greatness.

Edited

SubSquare is thinking about increasing the amount of HDX liquidity. Here are some reasons why they might want to do this:

To attract bigger investors
To reduce how much the price goes up and down
To get listed on more exchanges
To make Omnipool look like it has a lot of liquidity
To make the amount of trading volume bigger compared to the market cap

Here are some reasons why they might not want to do this:

People might sell their HDX
The price might not go up as much for each dollar invested
The company might lose some HDX

SubSquare thinks that HDX should be worth more, but they need to be careful about how much HDX they take out of Omnipool. They want people to share their opinions in the comments.

Comments

7NzN...tBec

For now I don't think it's the right time to add more liquidity.

The split trade for now fulfills its function and helps in case the trade is large

and even so 20k trade per 2% slippage seems good for me