Vote to have WSB as denominated currency for ETPs

This is a vote to have $WSB to replace USDC as the denominated currency for the ETPs!

Let the voting begin!!

9 Likes

it does not make sense maybe you can elaborate and explain why and how it would be beneficial ?

3 Likes

Using wsb as the denominated currency would be a means of exchange for the ETPs. Forcing liquidity to be maintained with WSB amongst exchanges. When some one goes to buy an etp they would exchange WSB for the etp and when selling the ETP they would receive WSB back. This creates traffic for WSB’s volume due to channeling, increased holders for people who would like the ETPs, and of course driving price.

2 Likes

How is this an advantage over UST? WSB is a governance token, not a medium of exchange. This would create a conflict imho as wsb token holder value is increased by fees from other medium of exchange tokens.

It serves as a utility play with WSB. The fees alone from ETPs aren’t enough incentive to drive price. So far WSB serves no purpose other than voting.

3 Likes

Not a bad idea actually.

1 Like

Welcome to the community Hubbzzyy,

The WSBDApp interface currently defaults to buy/sell with $USDC only for now, so replacing this could create further barriers to entry and some technical constraints. Purchasing with ETH or any other asset in an ETP basket is possible directly through the Balancer interface.

Some other thoughts:

  • If there was a way to offer a discount to the ETPs by purchasing them with $WSB could provide an incentive, with the potential to create buying pressure on secondary markets.

  • Would the WSB governance contract hold a supply of ETPs shares to allow for easier purchasing and redemption rather than direct to the ETP contract?

  • If the $WSB token was used to purchase an ETP, would it have to be automatically sold again for $USDC or one of the assets in the ETP so the pool can be balanced correctly? Also, where would the $WSB token go to when purchasing or redeeming?

  • Could the tokens could get burnt when purchasing an ETP, reducing the total supply of $WSB with a deflationary mechanism.

Any ideas around bringing more utility to the $WSB token is great to spark some discussions. I will have a think about how to solve some of the above issues.

4 Likes

I propose that WSB is for ‘Ticket’ to enter the ETPs platform. Tiers can be develop. The more WSB on ‘ticket’ they can buy more ETPs.

1 Like