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ChainGPT AIChainGPT AIby0xebAE98Dd538486809d01f11e47caf3C7c1d7702d0xebAE…702d

Proposal to Reduce Pool Lock Time for GPT-BUSD Liquidity Pool

Voting ended almost 3 years agoSucceeded

Introduction: The GPT-BUSD liquidity pool is one of the most important pools in the ChainGPT ecosystem. It provides liquidity for the CGPT token, which is central to the ChainGPT ecosystem, providing access to the advanced AI model and its utilities. However, the current lock period of 30 days is a significant barrier to entry for liquidity providers, and it increases the risk of impermanent loss. Therefore, we propose to reduce the pool lock time for the GPT-BUSD liquidity pool from 30 days to no lock period.

Risk Associated with Impermanent Loss: Impermanent loss is a significant risk for liquidity providers in any liquidity pool. It occurs when the price of the two assets in the pool changes, and the liquidity provider's share of the pool changes as a result. In other words, if the price of CGPT goes up, the liquidity provider's share of the pool decreases, and they lose money. On the other hand, if the price of CGPT goes down, the liquidity provider's share of the pool increases, and they make money. This risk is especially high when the pool lock time is long, as the price of the assets can change significantly over that period.

Benefit to the ChainGPT Ecosystem: Reducing the pool lock time for the GPT-BUSD liquidity pool will have several benefits for the ChainGPT

Off-Chain Vote

Approve
307.24K CGPT61.8%
Reject
189.69K CGPT38.2%
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Timeline

May 10, 2023Proposal created
May 11, 2023Proposal vote started
May 14, 2023Proposal vote ended
Oct 26, 2023Proposal updated