Hi @barbarossa_Arrakis Thank you so much for your replies and explaining how Arrakis PALM functions.
There is a discussion for accepting the two proposals first for limited period of time as a sort of trial
I’m wondering how this sounds for Arrakis, and your thought on this idea.
Furthermore, as you charge annually 1% of AUM, we are wondering how it is going to be if the period is shorter than a year. Do you calculate it on pro-rata basis?
Regarding the plan laid out in this discussion you quoted, I personally find it mostly reasonable. Although, 3 months imo is rather short for testing out strategies that are geared towards long term liquidity management. Long enough time is needed so that the strategies can experience various market conditions and iterate accordingly. Even in a backtesting environment, results from 3 months are never considered definitive. I’d say at least 6 months is needed, and along the way HOPR can progressively add or remove liquidity based on your own judgement. Our launch partner program is for 1 year term. On one hand, we think it’s just enough to reflect the true performance of the strategy without bias over market conditions, on the other hand, it’s the same term we have with other launch partners that we have to abide.
I think there’s concern in being one of the first to try something. What are the details in testing in the wild? What are the differences and reason for going to v2?
I support the offer! This collaboration will be interesting. The proportions are normal, maybe add a little to the HOPR / WETH pair. I hope this will have a fruitful effect on the liquidity and the future of HOPR!
Absolutely. It’s just a matter of less than an hour to deploy on an EVM compatible network. If HOPR community wants it, we follow.
Although, my advise is to prioritize where the volume is.
I agree that we should focus on ETH network. Current situation with liquidity in Gnosis chain seems to be fine for small transactions (restake, cashout staking rewards, etc).
Also it would be hard for DAO to execute such desition to transfer some liquidity into Gnosis chain.
Many thanks for the proposal and clarifications over the last few days.
Can you advise what steps you have in place to control Impairment Losses in the liquidity pool given its between two assets. Thorswap provides IL protection after 100 days so its not an issue after this period and keeps the funds safe moving forward.
Also when your system is balancing the ratio, how is this processed and whats the advantages / disadvantages on token price as you buy / sell the native token.
Definitely Liquidity management has important major role in DEFI, as many projects has failed because of lacking it. I really glad that HOPR team has taken it seriously. Though I think the initial liquidity would be much better to be more than 100,000. In addition It seems to me 50% trading fees that Arrakis charges is high.
Understandable. Testing will never be as same as bigger scale executions. During our testing, so there has to be a point where we need to start with meaningful amount of liquidity. We tested with a small amount in the wild and the strategy performed as expected (especially on the base asset bootstrapping part, as PALM managed to bootstrap enough base asset over a time span of 12 weeks during a bear market).
The reason we developed the new infrastructure is to make it flexible enough to implement all kinds of market making strategies, e.g. PALM, which our previous V1 is not good enough.