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[Important announcement]
About liquidity pool change and price dump
This is quite a long announcement, for TLDR ver, please scroll to the next message for the changes that are happening and the action needs to be taken. But we highly advise you to read through the passage to understand the reason behind these changes.
We want to talk about algo-trading bot first. You may not be aware but algo trading bot has been very active in taking advantage of the price difference between the BUSD and BNB price of DND whenever someone puts a relatively bigger trade. These arbitrager bots consistently trade between the two pools automatically which put accumulative loss to our LP providers. The most direct way to deal with it is to retire one of the liquidity pool (decreasing price slippage may also help but not effective). You may be aware that currently even PancakeSwap's farm offers only only one trading pair for each crypto, even for the CAKE itself! (CAKE-BNB). Therefore, in short, to protect our valuable crypto from bot attack, we don't need two liquidity pools. And we need the community consensus to vote which one to keep. The dev's opinion is inclined to keeping DND-BUSD pool because it currently has a higher liquidity, and also more stable pricing. After the community has consensus over which pool to retire, we will then boost the multiplier (and thus the APR) of that chosen pool by migrating all the multiplier of the retiring pool to the chosen.
The other thing is price dump happened today. Some of you thought that was due to panic sale due to the coming airdrop event. Actually the 6500 DND is not too much given our current liquidity considering not all will be selling. The truth is closer to some people who came from other farms during our early times, taking advantage of our high yield (which is much higher than theirs) and then selling our token right away when they have earned some DND token. This is happening because (1) Our farming yield is much much higher than our competitors and (2) Our liquidity is not high enough yet. Therefore to protect against these hostile seller, one way is to boost our TVL by giving more exposure. In that, our team is working very hard to gain exposure and get listed on websites so as to attract new investors. But it takes time and we can promise that we are trying our very best for that. The other way is to adjust emission rate. Just like we did after a few days of our launch, this is a way to protect our current holders by essentially decreasing future supply of the DND token. Therefore, we will temporary reduce our emission rate by 30% to 0.7. However, given the multiplier boost there will not be big impact to the liquidity pool. We may increase it back to 1 in the future if we find our TVL grows to a healthier level compared to our emission rate. Again, these measure are all to protect our holders against hostile seller for the long term development of DungeonSwap. We completely understand that some of you really enjoyed the crazy farming, same for us! But we just have to think for longer term if we want to win big.
Thanks again for all of your support.
[Important announcement]
TLDR (above for detailed reasons):
- We will retire one of our native DND, either DND-BUSD or DND-LP due to algo-trading attack. there will be a vote on this right below this message. Please vote for the LP that you would like to keep. We will thus boost the multipliers of the chosen pool (And thus APR%) and set the retired pool's multiplier to 0x.
Action required: Please vote below for the LP that you would like to keep (The vote will be closed in 24 hours, or earlier if we have good consensus, any changes will only happen 8+ hours after the vote is closed).
- The price dump today was due to some hostile attacker, in response we will be temporary reducing our emission rate by 30% to 0.7. The gains will still be good, especially after the boost of the multiplier for the remaining pool, and we will consider increasing it back to 1 when we have more exposure. This action is for protecting the long term development, and also the price of the DND token.
About liquidity pool change and price dump
This is quite a long announcement, for TLDR ver, please scroll to the next message for the changes that are happening and the action needs to be taken. But we highly advise you to read through the passage to understand the reason behind these changes.
We want to talk about algo-trading bot first. You may not be aware but algo trading bot has been very active in taking advantage of the price difference between the BUSD and BNB price of DND whenever someone puts a relatively bigger trade. These arbitrager bots consistently trade between the two pools automatically which put accumulative loss to our LP providers. The most direct way to deal with it is to retire one of the liquidity pool (decreasing price slippage may also help but not effective). You may be aware that currently even PancakeSwap's farm offers only only one trading pair for each crypto, even for the CAKE itself! (CAKE-BNB). Therefore, in short, to protect our valuable crypto from bot attack, we don't need two liquidity pools. And we need the community consensus to vote which one to keep. The dev's opinion is inclined to keeping DND-BUSD pool because it currently has a higher liquidity, and also more stable pricing. After the community has consensus over which pool to retire, we will then boost the multiplier (and thus the APR) of that chosen pool by migrating all the multiplier of the retiring pool to the chosen.
The other thing is price dump happened today. Some of you thought that was due to panic sale due to the coming airdrop event. Actually the 6500 DND is not too much given our current liquidity considering not all will be selling. The truth is closer to some people who came from other farms during our early times, taking advantage of our high yield (which is much higher than theirs) and then selling our token right away when they have earned some DND token. This is happening because (1) Our farming yield is much much higher than our competitors and (2) Our liquidity is not high enough yet. Therefore to protect against these hostile seller, one way is to boost our TVL by giving more exposure. In that, our team is working very hard to gain exposure and get listed on websites so as to attract new investors. But it takes time and we can promise that we are trying our very best for that. The other way is to adjust emission rate. Just like we did after a few days of our launch, this is a way to protect our current holders by essentially decreasing future supply of the DND token. Therefore, we will temporary reduce our emission rate by 30% to 0.7. However, given the multiplier boost there will not be big impact to the liquidity pool. We may increase it back to 1 in the future if we find our TVL grows to a healthier level compared to our emission rate. Again, these measure are all to protect our holders against hostile seller for the long term development of DungeonSwap. We completely understand that some of you really enjoyed the crazy farming, same for us! But we just have to think for longer term if we want to win big.
Thanks again for all of your support.
[Important announcement]
TLDR (above for detailed reasons):
- We will retire one of our native DND, either DND-BUSD or DND-LP due to algo-trading attack. there will be a vote on this right below this message. Please vote for the LP that you would like to keep. We will thus boost the multipliers of the chosen pool (And thus APR%) and set the retired pool's multiplier to 0x.
Action required: Please vote below for the LP that you would like to keep (The vote will be closed in 24 hours, or earlier if we have good consensus, any changes will only happen 8+ hours after the vote is closed).
- The price dump today was due to some hostile attacker, in response we will be temporary reducing our emission rate by 30% to 0.7. The gains will still be good, especially after the boost of the multiplier for the remaining pool, and we will consider increasing it back to 1 when we have more exposure. This action is for protecting the long term development, and also the price of the DND token.
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