Adding liquidity

General
1

The DAO should add liquidity to the market. Currently, there is a low amount of liquidity on Univ2. For this reason, an auction is preferably executed. Another good side of this is if it’s done Governance will own most of the liquidity on an exchange such as Uniswap V2, please give any thoughts on numbers.

The jist of it is that reinforcing liquidity reduces price volatility which helps participants. The basic risk is loss through impermanent loss, but considering the amount of TORN sitting in the Governance contract and the necessity of this it’s undisputable that this has to be done, essentially.

Other than finalizing (if there is something necessary) gozzy’s code, I will also check if there is other simpler solutions.

1 Like
2

Also the reason that gozzy was targeting two pools originally was due to the fact that token swaps either go through ETH or stables usually, so you want to have TOKEN-ETH, TOKEN-STABLE with liquidity such that the swap can hop through those pools.

Not sure whether we should encourage DAI though, we should be looking towards crvUSD I would think, rather.

3

if there is a delisting with binance, the tokens will not disappear, they will come out of there and create liquidity in the ethereum network. Yes, because of this, the price of the token will sink, but judging by the trend, the fact that people are starting to choose dex rather than cex, the drawdown will be temporary. Does it make sense to create liquidity on dex while there is a listing on binance?

4

and my opinion is that we should not maintain liquidity artificially, it will be a temporary illusion that will exhaust itself with time

5

and imagine the consequences if we provided liquidity on dex before the hack? It will be a clumsy system that needs time to make a decision, which can lead to sad consequences in emergency cases.

and we need to understand what binance will do with its balance sheets, in case of sanctions, it can unload its suitcases about our liquidity before delisting, delisting may well happen. Due to the ambiguity regarding the situation with the court and further sanctions, I propose to reduce liquidity on dex, only for the operation of the economic system of relenters and stake holders and not to rush to load liquidity from governance. We need to look at the situation, how it will unfold, in the case of delisting, if there will be one at all.

6

I advise not to add liquidity until the team has sold out of tokens, otherwise the liquidity will be ruthlessly consumed by the team.
After being sanctioned, the team immediately sold off, regardless of Torn’s life. After this attack, the team sold off again. So I don’t recommend adding liquidity to the team’s selling at all.
Recently I supported the destruction option in the forum. But it is not recommended to add liquidity. This may seem contradictory. On reflection, I think both the destruction plan and the addition of liquidity are good, but only after the team has sold out of the tokens, as the tokens currently held by the team are the biggest negative. Therefore, it is suggested that these proposals be postponed until the governance is restored, and that the punishment of cheating Repeaters be prioritized.

7

and imagine the consequences if we provided liquidity on dex before the hack? It will be a clumsy system that needs time to make a decision, which can lead to sad consequences in emergency cases.

The title says “to Uniswap V2 ETH/TORN”, honestly, what do you think is the chance of a Uniswap V2 hack in the coming millenium?

Though, I have also thought about other dexes, specifically a Curve crypto tripool if a factory is possible. TORN-ETH-crvUSD

if there is a delisting with binance, the tokens will not disappear, they will come out of there and create liquidity in the ethereum network. Yes, because of this, the price of the token will sink, but judging by the trend, the fact that people are starting to choose dex rather than cex, the drawdown will be temporary.

Maybe 1% percent of people are willing to risk IL for providing liquidity especially for TORN, you are betting on chances here, I am looking for certain outcomes.

and my opinion is that we should not maintain liquidity artificially, it will be a temporary illusion that will exhaust itself with time

What is artificial about providing liquidity, “a temporary illusion”, if there is a liquidity shortage putting liquidity on the market reinforces it, what is the temporary illusion?

I advise not to add liquidity until the team has sold out of tokens, otherwise the liquidity will be ruthlessly consumed by the team.

More analysis needed. I’ll check it out.

8

Check the above out and look for yourself what the liquidity status of the DAO is. That looks horrible. I consider it a large priority that liquidity is provided somewhere. I’ve planned out mostly how this is best done, and I’ll be working on it.

2 Likes
9

I am going to target solving this as soon as possible. Stay tuned.

10

my concern is that if someone has big quantity of token and dry the pool, then just burning the governance torn. but still i didnt really fully understand the whole logic behind, just raised out my concern here.

11

Where is the ETH used to increase liquidity?

12

the proposal to make a crvusd anonymity pool, after adding torn-crvusd liquidity. There is a dai anonymity pool, but the rewards do not go to the stake holders from the relayers

13

Yup but inverted order because infrastructure for pools are almost done.