"Soft Unstack" Feature - Avoiding price dumps

General Discussion
1

Hey folks, to avoid the recent price crash from happening again that we had I’d like to propose a feature called “soft unstack”.

So, how it’s supposed to work?

Based on the protocol liquidity, an algorithm calculates what would be the maximum quantity of tokens that can be sold in the market by a particular user, without causing a huge price impact.

Let’s say you have 1 million TIME and the algorithm analyses the current liquidity and determines that you can only sell 250k tokens per hour without impacting the price significantly.

Essentially your tokens will be gradually unstacked once you hit the “unstack” button, being released every “X” hours for you to sell as you should.

This will avoid:

  1. huge volatilities due to panic selling.
  2. Whales manipulating the price, buying large sums amount of TIME just to dump it later, causing FUD , and then rebuying from a lower price (this strategy is already happening in some smaller liquidity DAOs)

I understand that this is DeFI and there should be “no limitations”, but in fact, we’re not limiting anyone’s ability to sell. We’re just creating a mechanism to avoid harming the smaller investor and the overall ecosystem!

Thanks

1 Like
2

So this sounds good in theory, nice intentions I’m sure, but please no.

When I sell my millions of TIME, am I getting the original price or the price of when it sells (if the “soft unstack” is done) ?

I get what you mean, but this is legit stopping someone from selling their assets when they want to. What if the algorithm says you can only sell 0.0005 TIME cause to price is already crashing and if anyone sells it crashes even more ?

What happens when multiple people try to sell ? It split how much they can sell ? Or the first one gets all of it and the second one cant sell ?

This makes me think of the whole Robinhood drama that happen with AMC and Game Stop when people couldn’t sell…

Also, that’s 100% a lie… You are literally suggesting putting limitation on someone’s ability to sell

We should find a better alternative (if there is one) IMO.

3 Likes
3

No. Just no. Let the market work as it should. Pretty sure you couldn’t do any of this anyway.

2 Likes
4

NO, please dont!
I don’t agree with this.

You should be free to do whatever you want with your TIME/money like in any other market (that I know of) and I think this is part of Daniele’s vision too, for you/we to be free to do as we please.
By doing that YES WE ARE LIMITING PEOPLE ABILITY TO SELL.

Again… Its a BIG FAT NO from me.

3 Likes
5

So you’re limiting someone’s ability to sell if they sell too much.

6

No no no. People should be able to buy and sell how much when they want. This really goes against the essence of DeFi to begin with.