Yes, but try pulling out 300k out of LB when the LP goes down to 2mil.
Then trading the tzbtc for Tez on Quipu/Spicy/Plenty. Slippage will hurt for those who pull out last, and the only ones who can take advantage of this are people who can mint tzbtc (passing KYC for Americans is a NG for all the gate-keepers, even bitpanda exchange ).
Slippage is a setting controlled by the user, at the time they perform a trade. The user can input whatever slippage rate they choose too, they won’t perform a trade and then find out afterwards that the slippage was +5%.
I don’t claim to be an expert in Dex’s, but i’m well aware “Impermanent loss” is a risk you take with any dex (LB, Quipu, Spicy, Plenty etc). I’m suffering it on 1 pool on Quipuswap at the minute for some time and have been waiting for it to go back up.
The LB subsidy offsets IL with a constant stream of incoming funds, not reliant solely on transactions fees to generate returns like other dexs. This makes it less of a risk than others. If you’ve been in LB for a long time and been getting higher than the current 60% APR, I would expect to see little issue with LB withdrawals. Prices on other exchanges would likely fluctuate initially, but with support on multiple dexes, any opportunity for arb opportunities will likely have the prices return back to normal relatively quickly
I’m saying, liquidity will go down when the tzbtc sunset ends in Feb/March. So people will withdraw their LP and trade to tezos if they can. USA peeps will be stuck with TZBTC in their wallet so they will try to trade for XTZ, and there might be a lot of people who need to exchange tzbtc for XTZ meaning someone who can get kyc with the gatekeepers could make a lot off of the arbitrage in this mess.
stuck with TZBTC in their wallet
I don’t believe that the liquidity will simply leave LB and then disappear. As I mentioned above there are other exchanges that accept this. If LB is drained, liquidity holders will likely put their liquidity back into the other dexs to earn rewards. These dexs run off transaction fees, so a large number of people looking to swap would be attractive to liquidity holders, while they hold onto tzBTC. Which should keep the prices up.
People also hold onto tzBTC for other reasons than to be part of LB. Those reasons also won’t disappear with LB. Many will likely just hold onto the tzBTC instead of swapping it back, diversifying their assets, hoping the price of Bitcoin will go up.
Youves also recently announced that you can stake LB liquidity in their tool to earn rewards. This will likely continue as well, so no need to rush out.
gatekeepers could make a lot off of the arbitrage in this mess
“mess” is indeed an excellent word for what happened here. All of this nonsense being spread around about it leading to these discussions is indeed a mess.
I have no guarantees what will happen, if “gatekeepers” will come out better off and XTZ holders worse off, the other way around or everything stays the same hoping LB gets renewed. It depends on what each person does when it sunsets. LB made tzBTC much more accessible to the average XTZ holder than before, so there are opportunities for a lot of people to arb prices if it did go crazy. I suppose any outcome is possible. tzBTC was created long before LB and wasn’t created for this purpose. I don’t see tzBTC being wiped out of the ecosystem if the LB subsidy stops, and I don’t see anyone being “stuck” with it in their wallet forever
Wrong Mack. We’ve been over this with you about 4 different times now. There are no restrictions to tzbtc like there is for Usdtz. Period. I would once again recommend that you read the fine print before spouting out misinformation.
USA peeps stuck with tzbtc? lol no, unlike US peeps cannot even be stuck with Usdtz as it’s still not available for US residents to own. Once again, read the fine print.
@AlexL, are you saying that US persons are able to wrap and unwrap tzBTC? Which of the tzBTC minters listed on https://tzbtc.io/ will allow US persons to unwrap? I ask because I honestly do not know and was under the impression they all only served EU citizens.
No. Only the keyholders/minters can wrap and unwrap tzbtc. (Keyholders (Lexr, Inacta etc) <–> Gatekeepers (sygnum, btc suisse, woorton → Users) I would recommend that you go to tzbtc.io to see the exact process of how this works.
From my memory around last August when I contacted the minters to set up an account, it was btc suisse and I think Sygnum (need to dig through my emails again) that didn’t service US residents.
Alex, please, comment when you have done KYC with the tzbtc gatekeepers so we can all unmint through you. I’ve been waiting about 6 months now with no response.
Once again, I would advise that you go to tzbtc.io and read the process. There is no minting/unminting process done by gatekeepers. Secondly, it’s not like there’s atomex or quipuswap for secondary tzbtc markets or anything, along with soon to be bitpanda…
Ok, yes minting isn’t done by them, they just hold it with muktisig private keys, I get the point. Please focus on the issue at hand.
Please go yourself and see, no Americans can register for KYC. Bitpanda is the same. Quipuswap tzbtc pool liquidity is a joke, same with all the other pools, 0 points for your argument here. With usdtz we have had mint requests for 50k, 70k, Kevin’s company got back to us in a day. Do you think quipuswap could handle that without slippage? No that’s why they go through a mintery/gatekeeper which we cannot do for tzbtc.
A friend of mine is English and tried to kyc with Woorton. A few months later still no reply. Kevins process is much faster.
Please, try to do kyc with for tzbtc and when you get kyc’d come back here and uptalk tzbtc all you want.
Yes, cause anyone who by defacto holding USDtz as a US citizen can at any time get burnt because it goes against Kevin’s own T&C. So what is the point of having that constant threat of potential loss of funds because US residents aren’t even eligible to HOLD usdtz?
Second, tell me, what’s preventing fees from being raised or rug pull of Usdtz? The dubious “multi-sig” that will never be revealed?
When was the last time you used atomex or better yet, buying tzbtc straight from LB? Slippage is far from when it first started, so you might want to go try it again.
Tell me again why aren’t there any US minters for Usdtz? Also, answer me this, why should I or anyone trust Kevin’s multisig when he won’t reveal who the multisig holders are? What happens when these mysterious multisig holders decide to randomly burn people’s Usdtz? (You can’t say it has never happened, as there is already a history of this happening.) I don’t like banks, but I’ll trust banks and institutions 100X over anonymous multisig holders and something that has 0 internal controls published.
Regardless of the back and forth, I’ll push on with getting information from Woorton including their KYC process and if anything changes or is outdated info that I put on here, I’ll correct it with a post.
