Just added more background to the post.
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I didn’t look at the code of abracadabra to know more in detail, but do we need to use the wonderland treasury to liquidate positions ? To my knowledge, usually those liquidation bots take flashloans to do the liquidation (this is one of the more legitimate features of flash loans/flash swaps). What i can derive from your proposal is mainly give special access to the liquidation reward to a bot from wonderland; is it correct ?
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TIME has about $25m worth of sSpell, so we are technically already making money off Abracadabra fees. Idk about the bots or who profits from them.
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Yes. Occasionally you need more liquidity than what flash loans can provide. Either way it’s dumbshit simple to implement and TIME should benefit from its own volatility.
This is pennies compared to the amount a bot earns in liquidation fees. TIME treasury should benefit from the price volatility of the asset instead of a bot.
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I support this proposalđź‘Ť Great effort lad
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Can’t see any reason why you wouldn’t? 90% versus a split of 10%. Sounds like we’re taking on the “risk” anyway. Although collateral is already there so not really a risk, unless slippage is massive I.e. greater than 12.5%. In futures, if I’m right, times of higher volatility that 12.5% goes up. Always did in FX and CL markets.
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Agree w this proposal or some variation.
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Buy you close a transaction in a single trade so there’s not a lot of risk other than slippage. Please share this proposal.
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I agree to create a bot to use the DAO liquidity to buy with a discount and sell immediately. This takes advantage of bear markets as is it now and protect Wonderland Holders in this situations.
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Please share this proposal
i like pROPOSAL PROPOSAL GOOD
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I agree. I like this proposal a lot.
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I agree that Time should have a much greater benefit from abra liquidations. This would make me feel a lot better about any potential self-dealings and conflicts of interest the TIME team might have.
As it is, the owners of spell and spell liquidation bots have an incentive to get TIME to over-leverage and then pump and dump the price to get liquidations. This destabilizes TIME.
If you are going to make it so easy to get leverage by seamlessly feeding TIME holders into Abra and add bit of destablization to TIME in the process, we should get much more of a benefit from when the degens in our community get liquidated. Sure, our treasury holds spell, but this only gets a small fraction of the liquidations as compared to the bots.
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Agree with @Nimrod. Wonderland should develop a DAO owned bot to capture the other side of those liquidation fees.
Unless there’s some sort of benefit in having 3rd parties do them that I’m unaware of.
Don’t agree with having special privileges over other bots though. We should compete like all the other bots.
I can actually see the FUD already like accusations of us PURPOSEFULLY triggering liquidations to canabalize our own degens. Hmmm
would it not help dilution if it simply held wmemo, transferred it back to the treasury rebase helper then useable as part of the next rebase memo supply? reducing the token inflation of the next rebase round?
maybe not but im thinking it would recover MEMO, thereby having the ability to either reissue it at a higher price in the future (think kucoin spot bot spread) or repurpose it during the next rebase.
You should ask around Abra discord about this, i tried to find something they are doing to get fairer liquidations, but i dont remember who said that and what was specifically being work on. But im pretty sure this proposal doesnt align with the changes there.
Agree with this proposal
It is actually already in RFC stage take a look
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@0xPayton ya sadly thats not really wonderlands bag. i mean abracadabra is going to do whats best for abracadabra. this should be posted on the abracadabra governance forum because wonderland cant make decisions for Abra. even though dani runs both of them, he cant run operations that have conflicting interests.