We currently provide 15,000 BAL/week to the 60/40 WETH/DAI pool. We also provide 5,000 BAL/week to the 50/50 WETH/USDC pool & 5,000 BAL/week to the WETH/USDT pool.
- The USDC/WETH pool currently has $8,800 in liquidity per BAL/week allocated in rewards.
- The DAI/WETH pool currently has $5,453 in liquidity per BAL/week allocated in rewards.
- The USDT/WETH pool currently has $6,267 in liquidity per BAL/week allocated in rewards.
The USDC/WETH & USDT/WETH pools are also more capital efficient due to the weighting.
USDC does by far the greatest volume across the Ethereum ecosystem.
Over the last 7 days (as of this post) there was $46.98m in USDC volume via 0x API ( 0x Tracker ), vs. $15.11m in DAI volume.
On 1inch ( 0x Tracker ) there was $11.42m in USDC volume, vs. $7.96m in DAI volume.
We replace WETH/DAI 60/40 in Tier 1 with WETH/USDC 50/50. Over the coming weeks we phase out rewards for WETH/USDT & WETH/DAI. We potentially direct the T2 slots currently fragmenting our USD/WETH liquidity across multiple pairs towards the WETH/USDC pool, and facilitate other stable->weth swaps via the stablepool.
None that I am aware of.
Primarily that USDC for some reason freezes what’s in the pool’s smart contract. I don’t see this as any greater risk than them doing the same for what’s in Maker’s smart contract, which would cause big problems for DAI.
We also may upset some LPs who can no longer pool ETH with their favoured stablecoin.
- Is it better to have all our liquidity in a single deep USD/WETH pool and facilitate other swaps via the staBAL pool?
What impact would this have on someone trying to trade e.g. DAI for LINK (currently they’d do DAI->WETH->LINK, if we scale down that pool it would require DAI-USDC-WETH-LINK. Is fragmenting USD/WETH liquidity worthwhile for eliminating this hop for some trades?
- Do we think it’s important to have some redundancy in our main WETH-stablecoin pool, so e.g. should there be two main pools in case of some black swan event with a stablecoin, at the cost of fragmenting liquidity significantly?
I propose leaving this RFC to run over the next couple of weeks, before moving to a proposal if there seems to be reasonable support. Please answer the snap poll here on whether you support this proposal or not.
- Yes, it makes sense to replace WETH/DAI with WETH/USDC
- No, we should retain WETH/DAI 60/40 in T1 (Why? Explain)