Greetings Riders! As we are now live on mainnet for almost an entire day, we’ve been receiving valuable feedback from the community. One thing that has caused some confusion, around the price of Stablecoins and related rewards.
The price of stablecoins on Wingriders was 5–10% off against the market price. The reason for this unfortunate situation mainly arose from the fact that the bridge that is bridging the stablecoin assets is not publicly available yet and therefore there is no inflow of stablecoins to execute arbitrage on the pools. We expected the bridge to be available to the public shortly after our launch but due to some difficulties, this is not yet the case. We are trying to liaise a systematic arbitrage on the stablecoin pools by an institutional liquidity provider in order to accommodate the demand. The profits earned for the execution of this arbitrage will be used for a donation through our ecology impact fund or similar charity initiative.
There are a few scenarios we’d like to quickly outline — specifically for those who have been trading against the Stablecoin liquidity pools.
- If a Rider bought Stablecoins above the market price due to a price premium, then the best solution is to simply swap back now, before price arbitrage starts being systematic.
- Riders who bought Stablecoins above market and entered the liquidity pool as an LP provider. These Raiders are now earning fees and ADA staking while they are subject to impermanent loss as the pool will be balancing itself out. If you are risk averse, you should withdraw liquidity and swap Stablecoins to ADA.
- Those Riders who provided liquidity to Stablecoin pools and deposited LPTs in the hope of earning WRT. The WRT rewards for these two liquidity pools are currently suspended until the bridge is open to the public — the exact date is not known, but we were informed to expect this next week. If the bridge work is done early enough, there may be some possibility of Farming rewards within this Inception Reward Epoch. If you were one of the few users who had provided liquidity and deposited the LPTs into a farm, the risk-averse approach is to withdraw from the farm and remove the liquidity from the pool and swap to ADA. (side note: when removing LPTs from the farm, you need to set the dragger counterintuitively to 0% to withdraw everything — a small UI bug that we are fixing already)
Important note: Currently the Stablecoin liquidity pools are not incentivised via Farms. Thus no one can earn WRT tokens while they have their LPTs deposited in these two Farms until further announcements. All other pools and Farms besides the Stablecoin pools are not impacted by this issue. They are operating based on the standard AMM DEX parameters. ADA staking is, as well, not impacted.
Thank you for your understanding and apologies to anyone directly impacted. The WingRiders team would like to thank all of our community members for their support during the day. We appreciate your feedback and we will work to further clarify any areas of possible confusion.
