|Author||Edson Ayllon (@relativeread)|
The current DHT liquidity is inappropriate for large purchases of DHT. When DHT is purchased in a large amount, traders incur slippage and increase the price, after which arbitrage is done by other users from liquidity of other chains, reducing the price again. This leaves the original large purchase of DHT with DHT at an immediately lower price than they purchased.
Additionally, staking V2 will stop staking on Ethereum L1. This liquidity may be much better utilized on chains where staking will take place.
Currently, the liquidity of the $DHT token is divided into 4 pools, on 3 different chains.
The proposal is to move existing liquidity into a single chain. As Optimism is the chain with the most activity for dHEDGE, liquidity will be moved there and deposited into a DEX such as Velodrome or Uniswap.
Bridging DHT to and from Ethereum and Polygon to Optimism will still be available.
Protocol controlled liquidity will be removed from Ethereum and Polygon, and moved onto Optimism, executed via multisig.