I strongly agree we need a stable coin pool that is part of the XLP program because I don’t want to see my XLP value go down significantly when we hit the next bear market. Analysts are saying the next bear cycle could start as early as 6 months from now, as late as 18 months from now. Once that starts to happen, if we only have XIO/ETH as part of XLP, my choices will be limited to:
- Leave the XLP program and convert to more stable assets to prevent value loss
- Stay in the XLP program and strap down and prepare for possibly up to 80-90% losses at worst point before next bull cycle kicks in in a few years… doesn’t sound very appealing to me. If we had a stable coin instead, this potential loss of value would be significantly less.
I would vote for the USDC stable coin. I would vote against the USDT stable coin. I am indifferent to DAI.
Per a conversation earlier today, with the UniswapV2 blackhole issue, USDC, DAI, USDT are the only 3 good stable coins choices due to being part of their 6 tokens that don’t have blackhole issues (BTC, ETH, and another I think was Maker, of the 6).
I know that I personally want to ride the ETH wave a little longer and wouldn’t want to be forced into a USDC/XIO pool today, so this makes me want to suggest we give people the choice.
Simple answer: add USDC/XIO as another official XLP pool. The XIO Team can provide a migration plan in the future on how to allow this to happen fairly and properly.
A more complicated answer might include: officially announce now that the ETH/XIO pool will no longer be part of the XLP program as of the last minute of 2021. Give people time to migrate.
If we allow up and coming projects to be part of official XIO’s XLP pools pairs, I think they will have even more volatility than BTC and ETH and we may be re-introducing a bigger version of the same problem we are trying to get away from by eventually moving away from ETH and only to USDC. That moving from ETH to other non stable coins might introduce a less stable XIO price.
I would opt for temporary liquidity mining rewards with other tokens such as “For the next 30 days we have set aside 100,000 XIO that will be rewarded only to those who have added liquidity to YAM/XIO pair”. I think this could achieve about the same end result of marketing, but without affecting the XLP program. XIO for the Liquidity Mining could come from the Foundation wallet instead of the XLP wallet. To me, the Foundation wallet funds is meant for this sort of thing since this feels to me like a marketing and promotion thing.
Random and possibly bad idea: if we went 100% only to USDC… this could give us an opportunity to rework the XLP program to be based on total USDC value. Such as: earn 10-30% per month of your Moving Average USD value. This would peg the XLP rewards to the actual true value per month, no longer based on the total XIO you happened to add at some point before, which completely ignores price value changes over time, hurting some who added when higher price and helping others who added when price was lower vs now. If we wanted to do this, I think it could possibly be an easier way to explain and implement a smart contract based solution too.