Hey Eth_Man,
I appreciate the time you have taken to review our proposal and weigh in some of your concerns! I think itâs important to consider all opinions and look for solutions wherever possible. In response to 1 + 2: I understand that crypto market correlation and liquidity depth has been a talking point among the crypto space. I think that most of the issues revolve around an unwarranted pairing such as two tokens that do not stimulate each other within the economy. Pairing with stable coins will make the asset in question more hard and less volatile, xDAI/COLD is our largest liquidity pair locked with Unicrypt as I took the time to grow our stable coin pair as a solid foundation for COLD. After listening to the feedback from many of the 1Hive members who have supported us we realised that the main token used in exchange for COLD and many other tokens on Honeyswap is HNY similar to the way that traders on Uniswap use WETH to trade as a base currency for other tokens. After some consideration we felt that using our funding from NFT sales to buy HNY and pair with COLD was a great way to support 1Hive and our CTC community. Many of our artist are from 1Hive and we intend to make use of Gardens + Celeste in order to secure our Governance and Protocol as we have good faith that the 1Hive community and that HNY holders will have our best interest at heart.
" 3. There simply is not enough value in HNY to support the fragmented liquidity in the LPs which will invariably make trading difficult, slippage higher than it needs to be."
Using our NFT sales to buy HNY is giving it the direct value and liquidity HNY needs, this is a solution to that problem as we consistently add value to the protocol not extract it! We do not not rely on HNY to derive our value but correlate with it in a way that strengthens us both economically.
Now about the suggestion made changing the primary LP from COLD-HNY to COLD-xDAI, this would result in us selling a treasury worth of HNY for xDAI and I cannot support any kind of HNY selling around here! Honey is money and has far better properties than any stable coin can offer and this why we use our xDAI treasury to buy it.
Also take note that the soul purpose of this proposal was not just to have more liquidity, this is what we decided to do with the HNY if the proposal were to pass. The amount requested is for the hard work and achievements we have accomplished with an action plan on how we will continue to do so, I see a lot of projects ask for funding before a product or value is established so we wanted to set a good example of how to do that first.
