Gonna vent a little bit here because I’ve been frustrated,
Here’s the problem with USDtz LB and it’s the same problem with tzBTC LB. It’s just a dead end. There is no demand for tzBTC, it trades literally nowhere else in the world with meaningful liquidity and it’s hard to obtain and redeem. Of course there will be no volume, because nobody cares.
The requirements for successful liquidity baking are as follows:
- The ability for nearly anyone, large or small wallet, to trade large amounts between pairs
- The ability for arbitrageurs to easily arbitrage the pool
- Both assets in the pool most be highly desirable
tzBTC fulfills none of these requirements, and neither does USDtz sadly. USDC is IMO the clear and obvious choice. It can be bridged to Tezos easily (pegged bridge, so arbitrarily large amounts can be arbitraged), and is widely accepted on nearly every single exchange in the world and over every chain. As a benefit, USD pairs are the most widely traded on dexes and are highly volatile so they collect lots of fees and as a result will burn lots of XTZ.
I get that we don’t want to “play favorites” but this is missing the forest through the trees. The forest being that if we are able to create deep, usable liquidity on chain the pie grows for everyone.