âCan you explain your math here? How are you calculating how many AGVE tokens you should have?â
It was a rough estimate assuming all 10,000 AGVE had entered the pool rather than 1000, the amount you would have received per HNY or xDAI spent for AGVE would be at itâs correct ratio (10x more AGVE circulating) Iâm certainly not suggesting full compensation of those amounts. Just pointing out that the initial pool was at a 1/10th incorrect ratio thus impacting market share of purchases before the weth pool was created.
âAs far as I can tell the AMM worked as it always has, nobody got incorrect amounts, because the amount that they were trading was clear the entire time. There was never any guarantee that the price would remain at the starting ratio, nor any guarantee that it would not dip.â
This is true to an extent, I was more so pointing out the devaluation of the initial 1000 AGVE by introducing the other 9000 AGVE to the weth pool separately, If the roadmap and launch details were followed this devaluation would not have taken place as it did.
âAt the end of the day the communicated amount of AGVE entered the market, and when you were buying you knew what the circulating supply would be and were choosing to buy at the rate that was available at the time. When you bought you were comfortable paying what you paid for that amount of AGVE and that amount of the circulating supply (and eventual total supply).â
The circulation supply was incorrectly communicated, this is what I am trying to highlight here
âI completely agree that the way the mistake was handled and the switch to the other pool was extremely problematic, I think it could have been handled without abrupt and drastically disrupting the market once it had started⌠which is why I think some sort of compensatory airdrop is reasonable, some attempt to remedy the situation is appropriate.â
+1 on this, there are numerous reasons as to why this caused some unfavourable market behavior. I consider it was kind of like a knee jerk reaction. The correct measures could have been to slowly introduce the remaining 9,0000 AGVE and asses the situation more clearly before making any rash decisions to buy and pair with WETH all in one big hit. The same rebalancing effect could have been achieved by other means with less of a volatile impact on on the markets and now heavily misused funds.
âI think this can be rectified relatively easily, by creating a contract and moving the WETH:AGVE LP shares into it. The Contract would then facilitate the conversion of these LPs into HNY:AGVE LPs by selling WETH for HNY at the market rate (while ensuring that this is done in increments that are small enough not move the market price by more than some slippage margin).â
^ I think this is a very appropriate resolution to the current displacement of pools, by doing this in increments.
âProposed compensation for something has to be narrow and well specified for people to agree upon and implement it.â
You are right about this 100% the methods do need to be narrow and specified for people to agree upon it, I just hope that these methods reflect the greater good of project and community that showed up to support it. Too restricted and it may only benefit a select few, leaving out the majority that were effected. All things to take into consideration.
Thank you for contributing to creating a resolution, I feel not many people think about how to remedy such situations and your educated input through experience is highly valuable. Iâd like to hear further discussion from individuals who were involved and present at the launch, as well as those with experience like yourself on how to handle very complex ecosystems. I am not a tokenomics expert, hence why I have someone on my team to handle this, so professional advise is what we need here.
I would like to propose that the wallet addressâs included in compensation only go to:
a. Buyers that did not sell before the weth pool was created
b. Buyers that sold at a loss before the weth pool was created due to the mayhem
c. Buyers that purchased before the weth pool, but sold after the weth pool was created
I feel like this would fairly include the investors and community supporters who come early to support and buy agave that were impacted negatively and excludes those who may have gamed the system during this time of uncertainty. Would love to hear others thoughts on the matter?
As for amounts to be compensated, Iâll leave that up to the agave team and experts to decide