Launch "InvictusSwap" DEX governed by ICAP holders
maaft
What is your opinion on launching a "InvictusSwap" DEX based on Uniswap which is governed by ICAP holders?
It would be Invictus-Token exclusive (ETH/USDC/BTC pairs) The ICAP treasury could be used to provide constant liquidity on all pairs. By doing that, fees can be collected which can be used to grow the liquidity pool further and/or to burn ICAP tokens to redistribute value to holders.
A
Agape
I think that this would divert much attention and funds that could be used better elsewhere. There are already great existing protocols like Uniswap, Balancer, Bancor etc. that keep innovating at a rapid pace. Diverting liquidity from those platforms would be difficult. I think it's better to join the existing liquidity platforms instead of joining the DEX wars.
Herr Rossi
I'm not a DeFi expert at all, but I heard that impermanent loss is a big problem at Uniswap and especially at low-liquidity tokens, so that would be the case at InvictusSwap. I think I would be to afraid of it to provide liquidity.
Or do you think, holders should not provide liquidity but only Invictus by ICAP? Then a token holder would only USE the dex to swap tokens. Invictus would have to sell ICAP for providing liquidity, so there should be also a ICAP market?
Interesting idea!
maaft
Herr Rossi: yes, something along those lines is what I am thinking.
Also, I think there are other protocols which have a solution for the impermanent loss issue. Will look them up later. It doesn't have to be uniswap
mc
Herr Rossi: if Invictus have the iCAP collateral to inject liquidity to balance the pool then yes “impermanentLoss” risks could be managed well and this would give holders of various fund9s) tokens the option to rebalance by swapping whichever wdirection they need to rebalance. this is an excellent idea
J
This would mitigate the problem of impermanent loss, while solving the problem of KYC whitelisting, and also you earn BAL at around 15-27% APR alone.
maaft
To comply with KYC/AML we could use the onchain address whitelist from Invictus (for e.g. C20 redemptions) as Daniel Schwartzkopff suggested