As a potential investor, I am also concerned about impermanent loss. But I liked the explanation about how SOV/RBTC and XUSD/RBTC pools are related.
But, for an investor stable coin pairs in a pool is attractive. As I understand, AMMs help in increasing Liquidity for exchange and lending.
So, why not have a Stable Coins pool? It seems that a XUSD/$NUE pool should be possible in the near future.
However, given that the inflation rates between USD and BRZ may vary, impermanent loss is still an issue or am I reading this wrong- impermanent loss may not be that relevant for fiat currency synthetics. It may be that you also need a different algorithm (other than using the constant on a 50/50 pool). This is a bit beyond me. Love to hear ideas.
Stablecoins have the potential to have âso littleâ change in relative time / valuation that fees can take care of the loss.
I believe over time liquidity will get routed to asset pairs with âhigh correlationâ and âlow volatilityâ, this does not discount Bitcoin or other crypto as they will get less volatile with time and volume will likely increase massively, plus some are already well correlated. But for the time being, in long hodl of volatile LP pairs, you will most likely absorve impermanente loss.
I like a Dollar / BTC pair in the medium term, but a Real / BTC pair is no bueno; as if the dollar increases, so does Bitcoin (in reais).
If the code requirements are already built then maybe we can proceed to Voting.
If you still need more Voting Power to fulfill the 1% requirment to put this SIP upto vote then post your public address so the SOV stakers can delegate their votes.
Just an update, Iâm working with Transfero to start an XUSD/BRZ liquidity pool. Things have to get set up first, e.g. ability to arb & oracles, but weâre getting it sorted out before the proposal to have BRZ as collateral.
Thanks for the update! Would be great if we could get these sorts of updates for other SIPs as well; just a few lines. (In the case of Mintlayer, silence and non-action apparently meant the devs werenât into it, so just hearing that this is not the case with this SIP is helpful.)
Makes sense as this opens up the Brazilian market. Not everyone wants to move back into $ and given the size of the Brazlian market, this would really make Sovryn in the forefront of non-$ based stablecoin liquidity.
This SIP for XUSD/BRZ has been around for some time, with no serious consideration.
Does this follow the âRecommendedâ steps to be added for voting with a SIP submission in the Dapp?
I would support this SIP just to have competition for the USD stablecoins which are threatened by the regulators, and also to encourage adoption outside the US. I hope this will be the first of several new currencies.
Hi guys, I am ready to add this SIP proposal as is to the Dapp. What date is recommended, Saturday 10th, or Thursday 15th?
I will appreciate this is duly informed by the team in the different groups.
Could we get an update on this potential SIP? I thought that Rootstock would have better acceptance from the South American audience, so this would be a great addition to Sovryn.
Would this have requiered extensive dev. work or were there other issues?