Out-Of-The-Box Uniswap Integration For All Tribes A Good Idea?

in LeoFinance •  last month 

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Image by Cagatay Aydin CC BY-SA 4.0

Introduction

Ethereum is where the decentralized liquidity is. It has a massive 40 billion dollar market cap already. DeFi is a fact of life and I don't think it's going anywhere anytime soon. Even if regulators wanted to meddle with it, it would be quite hard. Namely, the European Union is mulling over a regulatory framework for crypto assets alled Markets in Crypto Assets (MiCA).(1)

The regulations stipulate that crypto-asset issuers must be incorporated as a legal entity in order to operate crypto services in the European Union. This particular requirement, however, could represent a significant challenge for DeFi projects because DeFi tokens’ issuers are “at times unidentifiable,” XReg outlined in an Oct. 5 report.

As part of the proposed regulations, any issuer of a crypto asset should register as a legal entity in some EU member state, issue a whitepaper with mandatory disclosure requirements and this and that. Good luck with that. Anyone is now capable of issuing a token on Ethereum and create pools on Uniswap or any other protocol. So long as the protocol is fully decentralized and the code is audited by credible parties, there is zero need for any "consumer protection" (in reality legacy market operator a.k.a. bank other financial instutution protection) and fraudulent marketing is criminalized, there is no need to require any paperwork.

  1. https://cointelegraph.com/news/report-europe-s-new-crypto-regulations-pose-existential-questions-for-defi

LeoFinance showing the way

Once the entire wLEO codebase has been upgraded for better security, wLEO has been relaunched and it has run for some time, I think it would a good idea to offer automated creation of wrapped Hive-Engine tokens on Ethereum. That would be a good long-term goal because if it's all going to use the same codebase, then the security and reliability of it is paramount.

This would be obviously benefit the entire Hive ecosystem because it would facilitate the creation of wealth centers on Hive as @taskmaster4450 puts it. For security, each of the projects would need to allocate funds to purchasing HIVE in order to power it up an participate in chain governance.

Conclusion

As a long goal, that is worth considering. Because of the technological and financial risks involved, this is something that should be considered perhaps only after the full decentralization of the second layer token infrastructure.

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It is always a good idea to go where the action is.

As you stated, Ethereum is not going anywhere anytime soon. In fact, it is likely that DeFi on the ETH space will just keep growing. Thus, what you propose takes on even greater meaning over the next couple years.

Once the entire wLEO codebase has been upgraded for better security, wLEO has been relaunched and it has run for some time, I think it would a good idea to offer automated creation of wrapped Hive-Engine tokens on Ethereum.

Are you stating that Leofinance offer this as a service to the other tribes? I am a bit unclear how you envision this being handled.

Posted Using LeoFinance Beta

More like the Hive-Engine developers taking the existing code base and launching it as a service to any token owner on Hive-Engine. If the development were funded from the DAO, the Hive-Engine team could hire more developers to get this done.

The inflow of money into the whole ecosystem could potentially be massive. If every Tribe token could have a wrapped counterpart on Ethereum, tens of tokens could see their prices moon kickstarting the creation of the wealth centers that you talk about. There would ultimately be more buying pressure on HIVE as well because the Tribe token holders would want to secure their holdings through participating in chain governance on Hive.

Ah I am with you. That is an excellent idea and the fact that tokens on ETH will go up....I think LEO proved that. The numbers are simply there.

Couple this with some from Ethereum gravitating to Hive front ends (tribes) will only add to this. People then could buy the tokens with ETH directly using the wrapped version.

Posted Using LeoFinance Beta

Yes. They wouldn't necessarily have to deal with the native asset at all to boost its price. Only dealing in the wrapped version would do it. In wLEO we already had a pretty convincing proof of concept (minus the hack, of course). People could remain liquidity providers and earn rewards that way.

Posted Using LeoFinance Beta