MIP-0013: ARTHB to ARTH-DAI LP providing incentive

Proposals
1

Hello dear Maha community, I would like to start a discussion to find a way fo people who redeem their arthb to be motivated to add their capital to ARTH-DAI Mahaswap LP. I think that the current solution to attract people to buy bonds is correct, but I also think there is still some room for improvement to incentivize people to transition from holding arthb to investing the same capital into LP pool. Here are my initial thoughts on a solution to achieve this:

  1. A constantly increasing size of ARTH-DAI LP pool would contribute to have each time a more stable price for ARTH.
  2. A way to achieve this would be to enable a one click conversion from ARTHB into ARTH-DAI LP as long as ARTHB is redeemable. As people who do this would be contributing for the project to keep growing, the one click migration from ARTHB to ARTH-DAI LP could eliminate MAHA fees from selling half of the ARTHB into DAI and grab the other half in ARTH to provide that liquidity directly into the ARTH-DAI LP.
  3. This way, I consider a smoother transition from contraction to expansion would occur. People who are trying to support the project would be rewarded by avoiding MAHA fees for converting half of their ARTHB into DAI in order to provide liquidity to ARTH-DAI LP pool and Mahadao team would be sure that the intention of selling that portion of ARTH into DAI is to further contribute to the project and not to dump ARTH’s price.

Hope to see your thoughts on this topic and discuss about it!

Cheers,

Giussseppe

3 Likes
2

I like the idea, but it might create a loophole for avoiding the 1% fees in Maha since nothing would stop them from just unbonding once their bonds convert to LP. I personally would like the option to do so, but also want to consider ways it could be abused.

3

Hey, yes there´s the possibility that anyway they want to then sell after converting to LP. Even though, if they want to sell ARTH, they would still have to pay the MAHA fees for that half of the capital they had initially on ARTHB. I am just trying to find a way in which we as ARTHB redeemers can convert half of our ARTH in order to participate in ARTH-DAI LP.