Preface
HAPI Token has a limited exposure to the BNB Chain network through exclusively Pancake Swap Decentralized Exchange. Uniswap has recently allowed their users to trade on the BNB Chain blockchain. In the last weeks, we also have noticed an increased activity on the BNB Chain and as such community is given a vote to decide which Decentralized Exchange suit them best. In the case of vote for Uniswap, all of the liquidity will be trasferred from Pancake Swap to Uniswap.
Case to be made for the transfer:
- Access to a Different Market: PancakeSwap and UniSwap are both decentralized exchanges (DEXs), but they operate on different blockchains. PancakeSwap is built on Binance Smart Chain (BSC), while UniSwap operates on Ethereum. By transferring liquidity to UniSwap, you can tap into a different market of users who prefer to trade on Ethereum-based DEXs. This could potentially increase the exposure and adoption of the “HAPI” token among a new set of traders and investors.
- Greater Liquidity and Trading Volume: UniSwap is one of the largest and most popular DEXs in the cryptocurrency space, with a substantial trading volume and liquidity. Transferring liquidity to UniSwap could provide access to a larger pool of potential buyers and sellers, which could result in increased trading activity and liquidity for the “HAPI” token. Higher liquidity can lead to tighter spreads, reduced slippage, and improved trading experience for users, making the token more attractive to traders and investors.
Case to be made against the transfer:
- Established User Base: PancakeSwap is one of the leading DEXs on the Binance Smart Chain (BSC), which has gained significant popularity and adoption among the BSC community. If the “HAPI” token has already established a substantial user base on PancakeSwap, transferring liquidity to UniSwap may risk losing that existing user base, which could negatively impact trading activity and liquidity. PancakeSwap’s user base may also have a strong familiarity with the platform, making it easier for them to continue trading the “HAPI” token on PancakeSwap.
- Avoiding Market Disruption: Transferring liquidity from one DEX to another may disrupt the existing trading dynamics and liquidity provision for the “HAPI” token. It may take time for users to transition to a new DEX and for liquidity to build up, which could result in decreased trading activity and liquidity during the transition period. This disruption could potentially impact the token’s price and trading volume negatively.
Something to note
It’s important to note that transferring liquidity from one DEX to another involves various considerations, such as tokenomics, community sentiment, and market conditions. It’s essential to carefully assess the potential benefits and risks, and consult with the appropriate stakeholders before making any decisions related to transferring liquidity.
Proposal Type Explanation:
Type 8: Token related changes including liquidity transfer, utility implementation and other potential changes to the tokenomics or token related activities
This type of proposal refers to any changes related to the tokenization of the HAPI Protocol as well as any adjustments to the liquidity on Decentralized Exchanges.
Stages:
- PROBE - low threshold voting to detect general interest in a proposal.
- IMPL - high threshold voting for a particular set of changes that should be implemented.
