SPS Governance Proposal - Establish BASE LP

About

The purpose of this proposal is to present the SPS DAO with an opportunity to expand it's DeFi presence onto a new chain and to potentially take advantage of Coinbase adding support for the BASE chain. Whether or not Coinbase does officially add support for BASE (which is expected to be announced on July 16th), having SPS on BASE still allows for a nearly zero fee solution for U.S. users to buy and sell SPS for USDC.

After speaking with several top stakeholders, many felt that the best way to secure liquidity for this new pool would be to close the DAO's position on ETH. Quite a bit of the volume on Ethereum is simply arbitrage balancing, which isn't bad per say, but is not being used as an on and off ramp for the token. BASE could be a better use of our resources, so it's up to the SPS DAO to decide how to proceed.

Proposal

If this proposal passes:

  • The SPS DAO will close it's SPS:WETH v3 position on UniSwap (currently valued at around $280,000).
  • The SPS DAO will bridge 20,000,000 SPS tokens to BASE.
  • The SPS DAO will bridge 100,000 USDC to BASE.
  • The SPS DAO will open an SPS:USDC v3 position on BASE with a 0.3% fee and an initial TVL of $200,000.


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25 comments
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What if we only close 50% - 75% of the Liquidity Pool and move it to Base. I fully support getting SPS LPs on Base. I'm not sure if we need to completely exit Ethereum.

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A small liquidity pool creates a lot of slippage problems for the users and forces them to trade in small amounts. Which is unpleasant due to the high gas fees on the Eth network. It's best to exit completely. I could understand using Ethereum over 5 years ago when there were fewer options, but it makes no sense that Ethereum is still so popular today with all of its problems.

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That is a very good argument. Since a large amount of the Ethereum volume is arbitrage balancing, large price movements could have favorable consequences. I'm leaning towards voting "Yes".

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If people feel strongly about it I'd suggest voting against this one and then we can reassess. @tidepodoreos already pointed out some of the issues. One thing that I think could be a big win for community liquidity providers is that if the DAO leaves ETH liquidity entirely, then community members could go and create a smaller pool and take all of the rewards if they feel the fees are worthwhile.

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Then I'm for letting the community earn the fees. I'm voting Yes.

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This sounds like a good idea to me. I wish we had it a few years ago. All of the paths to get money into Hive are either unreliable, complicated, or expensive. It would be nice to have an option that is none of these.

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I don't think anyone is making any proposals to attract more users to the game, activate it, and make it more well-known. I think you're taking the wrong approach, and some proposal should be made to attract new players. Those who are voting in favor are currently the ones who have a lot of SPs and are comfortable since they win every day without doing anything. Mind you, I'm not saying that's wrong; what I've seen since I joined the game is that I haven't yet seen any proposals to attract new players. Greetings.

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Like the one we just passed to give 30m SPS and 100,000 Rebellion packs and free accounts to web3 gamers affected by failed projects?

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Free accounts? Where do I apply for them? I've been playing for almost a month and I'm in a guild, so I didn't buy the spellbook. I assume that for an account to be free, it has to have the spellbook. Right?

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You can always write one!

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Well, I hadn't thought about that, maybe I'll make a proposal.

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And what do I have to do to make a proposal, I mean where do I have to go to write it?

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Why BASE, why is it better than ETH? Why not Solana?

It feels we should be given more info, maybe pros and cons and why one versus others. This proposal feels like it was thrown up with no effort.

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I ran several polls asking the DAO what was desired in relation to defi reform. Bridging to BASE was the winner over Solana. More importantly "why" is that CoinBase is supposed to be adding native support for BASE in the CoinBase app. So we could essentially get SPS via CoinBase for extremely little fees. This makes it much more accessible to U.S. users, where the majority of Splinterlands customers are from. This was pointed out in the first part of the proposal explaining why in the "About" section. I'll link the poll where I provided other chain options below.

As far as the proposal being "no effort," well I just can't please everyone. If I put too much information in there people complain and say I'm talking in circles and confusing them and it takes too long to read. If I put nothing but the contents of the vote people complain about that as well.

In an effort to avoid issues like this one, all of my proposals are reviewed by the three members of the DAO foundation and usually several other people before they go to a vote to ensure that they make sense and all readers felt this proposal was good enough to present to the DAO as written. I'm also always available to answer questions as I have been doing. Hope that clarifies things.

https://peakd.com/hive-104500/@clayboyn/sps-poll-should-the-sps-dao-consider-bridging-to-new-chains

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From the United States, Coinbase offers purchase of USDC directly from USD (fiat) bank account. It is free. Also on the base chain, by Coinbase, any transfer of USDC to any wallet address on base chain is 100% free. If you make a pool USDC:SPS, and a bridge that uses this pool, one can move money directly from USD from the US to buy SPS. This is currently not possible in a feeless or limited fee way.

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In addition to the points in the other replies, there is not currently any bridge option for SPS to Solana so that wouldn't be possible yet, while zkCross (the current bridging partner for SL) does currently support Base and can add it quickly and easily.

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I've been using Base more and more lately. As a US user this would be great as their is not cost/friction to move cold hard cash to Base. I do it on a weekly basis! +1 from me 👍

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