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RE: Liquid Staking Comes to VSC. Let's Understand Some Things Before That Happens.
sHive is a very tricky thing. You could theoretically even apply curation APR to it via autovoting and delegation aspect. Example: Stake Hive on VSC, HP delegated to VSC account, VSC account follows the vote of the person staking 1:1. Problem is what functionality do you want to give sHive. What can you do with it? If you sell, does it transfer the vote follow?
What will be the price of sHive? Liquidity comes into play. It could sky rocket. It could follow the price of liquid Hive. It obviously would be more valuable in functionality than liquid Hive as it would provide HP APR while being able to generate more returns in DEFI, so it could have a higher price.
It opens up a lot of things. The way I see it is that its still early to go this route. Not until VSC gets enough liquidity into its pools and volume starts climbing do i think its a good route to go in.
On the other hand I absolutely hate the HP 3 month powerdown time so getting Hive liquid this way would definitely be refreshing.
Having sHive much more valuable than Hive wouldn't be a great potential side effect. Unless it brings in more desire for HIVE too, so it actually pulls HIVE up too while it goes up in value. That might happen, since HP is needed to get more sHive (other than buying from existing holders).
Hmm, that opens the door to some abuses. On the other side, if you don't transfer the curation APR when selling, what incentive does the buyer have to buy?
A tricky one, indeed.
Yes, enough times the 3-months powerdown can be a deterrent to find new investors, or to keep existing ones long term. We are talking about a space that is mainly moving away from unstaking delays, or making them minimum. We have our limitations, but an sHive would solve the liquidity thing in a major way, if we can figure out the other aspects in a reasonable way.
I also agree that VSC should be well-established and the pools well-funded before thinking to add sHive.