[Implemented] Proposal for TRYB - USDC Public Pools

Governance
1
  • Title: Proposal for TRYB - USDC Public Pools
  • Author(s): Murat Firat
  • Related Discussions: NA
  • Submission Date: 27/12/20222

Summary:

The BiLira (TRYB) token is a full-reserve Turkish Lira stablecoin that is available on Ethereum, Avalanche, Polygon, Solana, Algorand and BSC networks, issued and managed by the BiLira company and backed 1:1 with the Turkish Lira. BiLira goes through regular audits performed by independent 3rd parties which can be found here. We are proposing to open TRYB and USD stablecoin public pools on Ethereum, Avalanche, Polygon and BNB.

Abstract & Motivation:

BiLira offers a convenient fiat on-ramp and off-ramp solution for crypto traders to combat high price volatility and to support the future applications of decentralized finance.

BiLira is the sole fiat on/off ramp solution available to the Turkish community and is being used since early 2020 as a bridge to the decentralized internet. Having TRYB pools on Hashflow will help onboard many users to the protocol, in turn increasing the liquidity and volume benefiting the whole ecosystem. MENA Crypto volumes grew fastest Between July 2021 and June 2022 — Turkey being the region’s largest market. The Turkish community will also be able to use Hashflow for bridging and accessing better rates for their swaps. With the ability to use different blockchains, the users will have the ability to provide liquidity in their blockchain of choice.

Opening public pools will allow Turkish users to participate in the Hashflow ecosystem with only a domestic bank transfer via BiLira. Hashflow will be onboarding a lot of new users from a very active Turkish crypto community.

Turkish crypto users tend to start their crypto journey via the local exchanges. By doing so, they avoid interacting with the complexities of the blockchain, such as the use of wallets and addresses. The BiLira team believes that the future of finance is decentralized, where users control their assets in their own wallets, without the intermediaries and swift access to DeFi. We want the Turkish Lira and its users to be able to bridge between chains, swap their assets, and provide liquidity to earn rewards.

Specification & Rationale:

With the TRYB public pools on Hashflow, Hashflow gets to onboard the Turkish community and bring in liquidity and volume(both from BiLira and from the community) in turn benefiting the entire ecosystem. By enabling public pools, all parties will be able to bring liquidity over in their blockchain of choice and make it efficient for both MM’s and the daily swap users to get better transactions and also incentive to participate in the Hashflow ecosystem.

Commercial terms:

BiLira is already operational on Hashflow on Ethereum and Avalanche blockchains via private pools for internal MM. If the proposal gets approved, BiLira will bring in liquidity for public pools on each of the blockchains that we are operating on: Ethereum, Avalanche, Polygon, BNB and other chains when we become operational on them. As of now our private pools liquidity is >$50K for ETH and >$25K for the Avalanche blockchains.

Benefits (Pros):

  • Increase the portfolio of non-usd stablecoins
  • Integrate a Turkish Lira fiat bridge via BiLira.
  • It will help Hashflow onboard thousands of Turkish Crypto users and provide access to potential new Turkish crypto users
  • Help Hashflow boost liquidity, market and social interest on all the chains TRYB is operational on by bringing our own liquidity and attracting LP’s.

Negatives (Cons):

Main risk associated with stablecoins is regarding the loss of peg. This is not relevant for BiLira since it is a fiat backed coin and BiLira is the sole issuer. TRYB tokens can be easily minted and redeemed on the BiLira platform. Periodic audit reports are available via the link in references below.

Other remarks:

  • Total Issuance: 5.192.876.480,29 TRYB
  • Total Redemption: 5.150.440.753,83 TRYB
  • TRYB tokens are backed 1:1 with TRY fiat reserves, BiLira (1 TRYB) is always supported by one unit of the reserve currency (1 TRY) in Turkish banks.
  • BiLira has been audited by trusted 3rd parties and requires users to go through the KYC and AML process.
  • There hasn’t been any hacks or vulnerabilities in the project.
  • The contract is verified on explorers.

The total size of the media community is over 50,000+ users across all social media platforms

Voting:

  • Yes means that you support Hashflow to proceed with the above arrangement.

  • No means you do not support Hashflow to proceed with the above arrangement.

1 Like
2

I do not agree with this proposal. The Turkish Lira has a very high inflation rate (83,45% at September).

3

What is the relationship between an asset’s inflation/price depreciation and its usefulness in a Hashflow public pool?
LPs can choose to deposit TRYB and take on USDTRY risk or just deposit USDC and not be exposed to USDTRY risk, or even not deposit at all, completely up to them.

TRYB is down %40 this year.
Some other assets that are in Hashflow public pools with a similar/worse performance against the US Dollar year to date:

  • AVAX (-%89.9)
  • MATIC (-%72.2)
  • ETH (-%70.2)
  • GAL (-%94.2 in 8 months)
  • WBTC (-%67.3)
  • BNB (-%55.0)

Basically all non-USD assets on Hashflow have performed much worse than TRYB. But I dont think this metric is even relevant. LPs can choose what kinds of risk they would like to take, thats the beauty of single-side deposit enabled, no impermanent loss independent pools.

Hashflow should optimize for increased TVL, volume and distribution into diverse and different communities and geographies. This proposal achieves these metrics.

4

I agree with Murat on this point.

In general, BiLira has strong backers and I think the benefits would outweigh the risks here.
I support this proposal.

1 Like
5

I support the proposal since it will help hashflow to reach mass adoption.

some questions I have:
are you able to generate organic yield for LPs? if so, it would be great to show us the proof from your current private Market Making strategies.

second, since it is the first public pool proposal that community should vote, I would like to set a ceiling of USDC deposit to it and increase that limit overtime like 100K usdc at first. this way we are able to test the Market Maker and lower the risk of a possible bankrun etc. I think you should suggest a starting limit for it.

I also ask hashflow foundation to double check on the legal side of this and the reputation of the proposer compony.

6

are you able to generate organic yield for LPs?
yes we plan to share profits from our strategies with LPs. Its quite hard to predict the returns right now as they will mostly depend on the volume that comes through Hashflow. It’s not possible for us to share returns from our proprietary MM strategies, but we have been market making TRYB and TRY against crypto assets for over 2 years across many venues successfully. Strategies are usually delta neutral cross exchange MM.

for the second question:
we’re happy to start off with a limit as well, but to make it more flexible we propose a minimum capital commitment from us of $100k and at least %20 of pool size at all times. So we initially provide 100k then as the pool grows organically to 1m we will increase our deposit to 200k to maintain the %20 level. We will be the first-in and last-out of the pool.

7

I agree with this proposal. After the FTX collapse, Turkish community of TRYB users (including myself) were searching for a swap point for TRYB and trying get yield on TRYB better than Turkish banks offer. With opening a public pool with high liquidity will allow users to swap between TRYB and USDC with much better prices. People can earn yield with providing liquidty as well. Opening the public pool will definitely help onboarding Turkish people to Hashflow. I was using the private pool as well but I can get much better prices with a public pool and I would like to provide liquidty as well. Well done BiLira team, hope everthing works well. I belive that both Hashflow and BiLira will benefit after opening the public pool.

8

thanks for the explanations. I support this
also
please mention some of your current venues where you are Market making.
and
regarding the limits, I did not fully understand how much exactly the total pool size should be at first ?
based on your minimum capital of 100K$, I suggest to set the limit of max pool size of each pool to 200K$ and increase that amount quarterly until 1M$. let me know what your thoughts!