TEMP CHECK - Should MetalSwap Reallocate $100K Liquidity to Linea's Layer-2?

Temp Check is open on Snapshot:

Following the enactment of MIP-5, we continue to enhance MetalSwap’s functionality on Linea’s Layer-2. Our upcoming Temperature Check poses an important question to our community: Should we transfer a substantial portion of liquidity from Ethereum’s mainchain to support our operations on Linea’s Layer-2?

Objective:
This Temperature Check seeks community input on reallocating approximately $100,000 in liquidity from the Ethereum mainchain to Linea’s Layer-2, concentrating on the wstETH/USDC.e trading pair.
This initiative aims to augment the user experience for MetalSwap’s Hedging Contracts users on the new chain.

Details:

  1. Proposed Liquidity Transfer:
    • Amount: Around $100,000: 25k$ from the WBTC liquidity pool, 25k$ from the ETH one, and 50k$ from the USDT one, based on the values of digital assets at the time the transactions are executed…
  • Trading Pair: wstETH/USDC.e.
  1. Reasoning: Since layer 2 has been active on Optimism, the 100% of MetalSwap’s dApp volumes went there, so the liquidity that lies on ETH loses its usefulness.

  2. Anticipated Benefits:

  • Improved user interaction on Linea’s Layer-2.
  • Strategic use of the less active liquidity from the ETH mainchain.
  • Strong backing for MetalSwap’s Hedging Contracts on this new platform.

Participation Eligibility: To voice your opinion in this Temp Check, you must:

  • Own $XMT in your wallet on Ethereum Mainnet.
  • Have $XMT staked in the Active Ethereum Smart Pool or ALPHA CLUB NFT Pools.
  • A 20 million XMT quorum is required for decision validation.

Make Your Voice Heard: Cast Your Vote in the Temperature Check Now!

The vote is open until Nov 13, 2023, 6:06 PM

-DeFiFoundation

2 Likes

If the proposal passed, how much liquidity would remain on the Ethereum network for each individual asset? Thank you

Referring to today’s digital asset price, the remaining value will be $450,000.

Personally, I think that in the future, Metalswap would have to reallocate almost all of that liquidity. I can’t see people using this product on the Ethereum chain with high tx fees

1 Like