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1/ You might be concerned about multiple $RUNE : ASSET pools popping up on Sushiswap. You might think this dilutes Thorchain's liquidity.
Let me tell you why it's in both Sushiswaps' and Thorchain's best interest to have many deep RUNE : ASSET pools on Sushiswap...
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Let me tell you why it's in both Sushiswaps' and Thorchain's best interest to have many deep RUNE : ASSET pools on Sushiswap...
More
2/ Thorchain covers the short-tail (the most economically active pools). Sushiswap covers the long-tail (the small cap gems)
Sushiswap's RUNE:ASSET pools are essentially acting as an incubator for future Thorchain liquidity atm...
Sushiswap's RUNE:ASSET pools are essentially acting as an incubator for future Thorchain liquidity atm...
3/ Yields on Thorchain will be higher than on Sushiswap, with similar pool depths.
Thus LPs are incentivized to move their liquidity from Sushi to Thorchain once the same pool listed on Sushiswap gets activated on Thorchain. Until yields reach parity...
Thus LPs are incentivized to move their liquidity from Sushi to Thorchain once the same pool listed on Sushiswap gets activated on Thorchain. Until yields reach parity...
4/ Eventually we'll likely see a deeper RUNE:Asset pool on Thorchain and a shallower one on Sushiswap. Both will grow in unison once equilibrium has been reached...
5/ In preparation for multi-chain, it's important to get deep liquidity on popular coins, paired with RUNE on Sushiswap. For example ETH, YFI, SNX. This will enable multi-chain to hit the ground running. Because liquidity will be deep from the start...
6/ Deep liquidity means > 
slippage fees > 
volume >yields > liquidity > Etc. Aka the liquidity black hole.
slippage fees > volume >yields > liquidity > Etc. Aka the liquidity black hole.
7/ This doesn't mean The RUNE:ASSET pools on Sushiswap will disappear once multi-chain is live, they will just be shallower than Thorchain's.
Many coins won't be able to get listed on Thorchain due to competition from more liquid coins. Sushiswap offers the possibility for...
Many coins won't be able to get listed on Thorchain due to competition from more liquid coins. Sushiswap offers the possibility for...
8/ smaller projects to grow their liquidity by pairing with RUNE and eventually become big enough to win the liquidity wars and get listed on Thorchain.
As RUNE will be one of the most liquid coins in the cryptosphere, RUNE.ETH might become a main base pair for LPs, similar...
As RUNE will be one of the most liquid coins in the cryptosphere, RUNE.ETH might become a main base pair for LPs, similar...
9/ to ETH, on Ethereum.
The above is all speculation and might not be 100% correct, I'm just thinking out loud. I have no inside knowledge.
Feel free to correct me/comment on the above.
The above is all speculation and might not be 100% correct, I'm just thinking out loud. I have no inside knowledge.
Feel free to correct me/comment on the above.
