Simple actionable Maid-ERC20 Proposal

I asked you where liquidity will come from, you said that people wanting the price to rocket before they sell will provide that liquidity. I don’t think that works. If you know where liquidity will come from, I’d be interested to hear, but I’m not arguing about the need for liquidity. And wherever it comes from, I’m suggesting it be included in the proposal.

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I like it!

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Possibly a dumb question but can someone tell me if all those who have lent their coins in these liquidity pools (don’t fully understand these) can get their coins back quickly if a market rout happens and they need to sell?

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Now I understand your question, thanks for the clarification.

So UniSwap is AMM:

Uniswap is an automated liquidity protocol powered by a constant product formula and implemented in a system of non-upgradeable smart contracts on the Ethereum blockchain. It obviates the need for trusted intermediaries, prioritizing decentralization, censorship resistance, and security. Uniswap is open-source software licensed under the GPL.

Each Uniswap smart contract, or pair, manages a liquidity pool made up of reserves of two ERC-20 tokens.

Anyone can become a liquidity provider (LP) for a pool by depositing an equivalent value of each underlying token in return for pool tokens.

This means that unlike exchanges, when someone adds liquidity, this liquidity does not disappear when someone buys or sells. In the standard exchange, if I sell 1 MAID for $ 1, I take the dollar and the other person takes my MAID and nothing is left.

At UniSwap, if someone buys my MAID for $ 1, that 1 dollar stays at UniSwap for someone who wants to sell MAID.

This is a very powerful mechanism for generating liquidity and the fact that UniSwap literally caught up with CoinBase in 1 year shows it.

I will personally add liquidity in several pairs - for example, MAID / Storj. This means that anyone who trades Storj will go through my pair if the price is better - it’s automatic. I hope this helps.


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Fwiw, im almost in range long term gains cutoff (1 year in US), and 10x my cost basis, so I plan on providing a little liquidity, but certainly not enough to be very significant.

Edit: ew, just saw Biden’s tax proposal…long term gains might not make a difference…

Edit2: oh, nevermind, I won’t be trading anything close to $1M. Lol.

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Thanks for the question @happybeing. I assume by “providing liquidity” you are talking about the amount people transitioning their Maid-Omni to Maid-ERC20, and whether it will be enough to be worth it? If I interpreted your question correctly then there are a variety of incentives that may encourage people to make the leap to Maid-ERC20 (over an above the two poll results supporting the idea):

  • Much wider array of secure storage methods and wallets, better hardware wallet support. It is a more convenient way to store your Maid.
  • Ability to use those Maid.ERC20 on a DEX such as Uniswap and earn fees passively.

The second point cannot be underestimated as an inventive ti encourage liquidity. It is why Uniswap does over $10 billion a month trading volume, so it certainly appears to be working as an effective incentive.

That is the beauty. New users and developers in decentralised tech that will be most interested in this project are already on the outside, and mostly on Ethereum. Whatever Maid.ERC20 is created and put to work earning fees will also be a bridge bringing that liquidity, user and developer mind share to this project.

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Sure, there are many honest people just like you, but they reside in the Ethereum space on one of the many simple mobile wallets it already has. They used one of the many simple fiat bridges that network already has to get in buying with the debit card on a simple interface. Those people just like you want to point, click, buy, and use on their mobile (when SN goes live). One of the main aims of this proposal is to give those push button it just works people an easy bridge into this project, one that Omni is incapable of providing and native SN will not be able to provide for quite some time after launch (allegedly). We want more people like you to be able to onboard!

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@krnelson you explain much better than I do, thank you!

:love:


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I’m not taking about how much will be converted. That’s not liquidity.

By liquidity I mean amounts available to be bought and to be sold on any exchange that facilitates trading.

Dimitar suggests that he will help do this for Uniswap as described just above. I don’t fully understand how that works but assuming he provides some liquidity, I think others will also be needed - on both sell and buy side - for this to be worthwhile. So I think this is something that needs to be put in place one way or another.

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As I said, there doesn’t even have to be people wanting to buy MAID in the beginning. If there are pairs of tokens, there will be cash flow because it is automatic.

If the price of MAID / Storj changes in favor of Storj, someone will get involved in arbitrage and buy the cheap MAID.

This will raise the price of Storj in the pair and again the next selling Storj will automatically go through it. It’s a process.

UniSwap is designed to generate liquidity and does it very, very well - $ 10 billion a month well!


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i agree with dimitar if we want liquidity UniSwap would be great for Liquidity and getting people on the maidsafe bandwagon.

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not to mention that you get paid/rewarded for providing this liquidity in the form of fees from the person wanting to trade your pairs!

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This is true and is ok for people who want short-term profit. I don’t want to sell my MAID and I plan to keep it to the grave, but to help the community I will add liquidity despite the potential for impermanent loss

(I just note that I am not rich and my contribution alone will not be enough)

:dimitar:


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What is advantage of this manual multisig based wrapped maid ?

In my view, the risk is really high but the return is not that much.

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Good question!

The bonus is that the community will have direct control and will not have to comply with laws that a company must follow.

One more advantage is that we will test the future exchange of Safe Tokens for ERC20 wrapped Safe Token.

It is likely that the Safe tokens will be prohibited by law and a P2P solution will be our only option for access to liquidity.


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You can withdraw at any time, but you don’t necessarily get back what you put in.

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It would be possible to bridge directly to Optimism, right? Probably better than going to mainnet, although not proven so more risky.

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I don’t think we can put the ERC20 token directly there. We will have to go through the ETH mainnet. But once inside the fees will be ridiculously small. :happyant:

Traders will be extremely pleased, right @Southside?


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I think it is important to always keep in mind that with this proposal the ERC20 version is not MAID, but a representation of MAID. So I wouldn’t necessarily agree with this point.

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If it is full ERC20 MAID, ie. acknowledged by MaidSafe the Keith statement is true.


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