RE: SPS Governance Proposal - Establish BASE LP
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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.
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".
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.
Then I'm for letting the community earn the fees. I'm voting Yes.