Greetings fellow SPS DAO people! I've put together a series of polls to help determine what exactly the DAO would like to see when it comes to potentially reworking our DeFi strategy. I plan to take this information and craft a proposal/s to allow the DAO as a whole vote on the future of our LP strategy. You can read this recent post that I wrote if you'd like to learn more about a potential DeFi strategy based on attracting triangular arbitrage.
Ultimately the goal of these polls is to ensure that the community has a say in helping to craft the proposals that will ultimately be voted on. If this stuff bores you or goes over your head, feel free to sit it out or ask questions and I'll try to address them when I have time. Thanks for your time and consideration on these issues and hopefully together we can build consensus on how to move forward and best serve the DAO.
Poll 1
Should the SPS DAO Offer LP Incentives?
One of the oldest debates that has been ongoing for a couple of years now is whether or not we should have any LP incentives at all. Ultimately it's up to the DAO, but my belief is that if we are going to have LP incentives, we need to use them mindfully and strategically to create value for the SPS token and focus on building pools that can sustain themselves with fees instead of token printing. Otherwise, we're just renting liquidity and that isn't a sustainable long-term strategy as we'll eventually we run out of tokens to print and that liquidity will likely move elsewhere when we do.
Poll 2
Should the SPS DAO Create 5 New Pools to Encourage Triangular Arbitrage?
This poll is pretty straightforward. It's just a yes or no on whether or not you feel this strategy is worth trying. You can read my personal thoughts on the potential benefits and risks here.
Poll 3
Should the SPS DAO Consider Bridging to New Chains?
This poll aims to explore whether or not the DAO wants to consider bridging to new chains as part of an expanded DeFi strategy. I included the current highest volume DeFi chains as options to vote on. Expanding to new EVMs shouldn't be too complicated, but if we're going to do that, we should definitely do so strategically. We need to make sure the chains and platforms have volume or strategic partnership opportunities that make sense for the effort required.
Poll 4
What High Volume Trading Pairs Should the SPS DAO Focus On?
In this poll, I selected some of the highest volume and most universal tokens that the DAO may want to consider pairing SPS against. These are tokens that consistently have high volume on many different platforms which could make it easier for DAO pools to attract triangulated volume.
Poll 5
What Fees Should New Higher Volatility V3 Pools Utilize?
This polls explores whether or not we want to utilize high or low fees. Generally low fees attract more volume as it's easier to route tokens through pools with low fees. For example, if you have a pool with a 1% fee, the pool needs to be over or under by about 1% before the trade is net neutral. This is amplified when pursuing triangular arbitrage as you'd have multiple pools that need to be over or under by about 1% to be a viable trading route. If the fee is .01% then nearly any trade that doesn't cause extreme slippage could be routed through the pool, but liquidity providers would earn 1/100th of the fees of a 1% pool, so the pool needs to do 100x the volume to earn the same fees.