I noticed a big chunk of liquidity has been pulled from the Uniswap pool. Now I’m not a Uniswap expert, but it might be worth investing if it might be more interesting to set up a 1% fee pool to make providing liquidity more attractive?
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The liquidity provider who pulled its token was being annoyed to be victim of arbitrage and lose eMAID token over time. The fee made on providing liquidity did not compensate for the impermanent loss and arbitrage friction.
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What would be ways to increase the liquidity on uniswap without having the liquidity providers suffer from losses? Again, not a Uniswap expert so sorry if these are stupid questions. I do know a ton of people relied on Uniswap for their bigger entries and exits which helped the overall volume
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If many people offer just a small share of their holdings, e.g. 5 or 10% to provide liquidity for the market it will also allow price to rise as more people can buy/sell it. You can actually also provide just for one side (e.g. only lock eMAID above the market price or only lock USDC).
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I personally wouldn’t mind helping out by providing some liquidity, it’s mainly my lack of knowledge which prevented me from doing so. Additionally the 0.3% fee seems a bit low for the risk involved (but that may just as well be my lack of knowledge).
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I would also be willing to provide liquidity, but I don’t really understand how it works. In my mind, it doesn’t make sense to provide liquidity when I’m buying all the emaid I can. Does it make sense to provide liquidity and buy emaid? Am I buying my own emaids?
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You can provide liquidity only whit USDC - so when the price goes down you buy, then you can take out the EMAID and put in new USDC liquidity. See more here how exactly it is done -
“How to: Add Liquidity eMAID using Uniswap”: [How To]: Buy/Move/Store ERC20 eMAID
Privacy. Security. Freedom
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okay that makes sense.
Is it safe to provide liquidity? Let’s say I put in 20k USDC and in a month I want to withdraw it, is it feasible? Or are there penalties for withdrawing liquidity? Is there a risk of losing the USDC?
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There is no risk with the smart contract, there is a risk of Impermanent Loss: Impermanent Loss - Techopedia. But in your case, in my opinion, since you will put only USDC, there is no such risk, because you will have bought eMAID at an average price. For example, if you set to provide liquidity between 20 cents and 10 cents, at a price of 20 cents and up, your 20k USDC will be 100% in USDC, and at 10 cents, it will be 100% in eMAID and worth about 15k USDC (this is an example, I haven’t checked if that’s exactly how much it turns out), but the percentages are correct.
Privacy. Security. Freedom
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Sounds good, I’m going to try it.
thank you 
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You said on 1Inch it is also possible to create a limit order for DEX? Will this also show up as liquidity pool? E.g. I put 1K USDC at 0.20 cent, if it drops to that price or below I want to be full into eMAID and not swap back to USDC if price goes up again?
No, those requests are kept on their server and is invisible as far as I know.
@DeusNexus scratch that - there’s a public api that lets you access limit orders:
Privacy. Security. Freedom
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Personally I think it would be good migrating from the 0,3% pool to a 1% pool (1% is the max available, right?). Liquidity right now is quite low and I feel liquidity providers should be rewarded more. I think for the ones buying, the 1% doesn’t matter a bit. I know that the average buy on the Uniswap pool would move the price by 5%+ on Bittrex anyway.
I think everyone would benefit from having bigger liquidity on Uniswap and it’s worth setting up. The market can organically move liquidity back into the 0,3% pool if the liquidity and volume on the 1% is getting to massive to profit from anymore. I would’ve set it up already if I had the knowledge (or time to learn). Anyone else up for it?
Something else I’ve been thinking about is maybe the pairing isn’t ideal either. Price of maid is BTC, when eMaid is connected to USDC, you now have two volatile markets you need to take into consideration. (When BTC price rallies, there is a hedging opportunity. And also when Maidsafe rallies). When pairing with something like wrapped BTC the price moves along with Maid rallies only. Not sure what the adoption of wrapped BTC is, but another option worth exploring is if we can get Maid to be paired with USDC or tether on Bittrex (I’d advice instead of BTC pairing because of the low volume/liquidity already). I can imagine Bittrex wouldn’t mind cooperating here as they too benefit from increased liquidity and the workload for swapping pairs is near 0.
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It’s on the way
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That’s great to hear! Will it replace the btc pair or will it be added as second pair?
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Second pair
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I would be a bit worried that some of the BTC liquidity (which is already quite low) would move into the USDC liquidity. Leaving 2 illiquid trading pairs. I’m sure you guys thought about this as well. Is there anything in place to have liquidity on both pairs?
Not that I know much about this but if people buy with low liquidity price should go up and then people will wish to sell and liquidity will come naturally when the price is high enough to tempt people to cash in some of there coins
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Great move to ad example USDC. It would also be wanted in the future to get SNT/MAID paired with USD, EURO and GDP. Maybe it comes automatic with large Volume. Hope the work getting SNT/MAID added to exchanges and similar continues after launch.
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This is pretty much how it works, there is a small nuance though. Because if you look at the current price range, there isn’t much (genuine) selling going on (most is algoritmic trading). You could argue to push the price up, letting people sell into you ar higher prices. The issue with that is now you pushed the price up to increase the liquidity on one side, but now the buying liquidity dried up because prices have been pushed higher because of it. Now, if you want to exit the market with the coins that you bought earlier, you would have to push the price down again to create buying liquidity. In high liquid markets, these ranges are +0.1% to the upside and downside. With illiquid markets, like maid, 10% and above isn’t that far fetched. Because of this, you cannot enter this market with big capital without the risk of losing a ton of money with just the entry/exit, which in turn result in low liquidity in the market. It’s the typical chicken and egg story.
Therefor I would argue it’s going to be better to focus on one trading pair (usdc on both bittrex and uniswap (1% pool) as this would create the biggest liquidity on the pair and allows for bigger players to comfortably enter the market. Which is good for everyone within the project really.