I am very happy to debate the merits of the change at what the change represents.
I just want to clear up, and make sure we are on the same page.
It is perfectly acceptable to say, BALN/bnUSD is more expensive, but we still prefer it because of X,Y or Z.
Thusly the remainder of my arguments are towards WHY buying more of that cheaper portion is better. I have them scattered throughout, but will try and list them again here:
- It is not proven by ANY numbers, that the exact split we have now is ideal. It is surely clear to anyone that cutting BALN/bnUSD by 25%, will make TVL fall by 25%, and increasing BALN/sICX by the same amount, lets say it just moves it, the TVL increases by that exact same nominal value, that that is a worse scenario.
- I have given data above, for very extremely successful DEXs, tend to favour very skewed pools, and this part is critical as well, ALL heavily do not favour platform token/stable. That one trend is very obvious. They also favour ultilising hops, even for pools with (a small amount) of direct incentivication.
- Multiple hops can make the trading experience slightly worse, but can reduce Price Impact, mitigating the negatives to the trader, while increasing fees. Balanced makes fees from more hops, Balanced makes ZERO fees from the trader suffering more Price Impact.
- Higher TVL in BALN/sICX for the same trading experiance, locks up more BALN.
- It is easier to attract liquidity when one side has a much large supply, thats almost always the native token, ETH, ICX, etc.
- Higher TVL is a known marketing metric for DEFI platforms, without any improvement in trader experience, or in fact with a negative trader experience, this, plus point 3 about hop fees, can make it a superior choice.
- Opinion Other DEXs support Platform/Native the most because on a chain the richest people, the whales, are rich in the native token. There are people with WAY more ICX than anything else on the chain, making sure they choose to use OUR platform means the deepest pools should be X/sICX. This is why on other platforms, since they face real competition, all of them favour X/native to be very very much deeper.
Closing
We are buying Quadruple the amount of the liquidity that is double in price to a perfectly valid pair. We can buy a little less, of the expensive one, and more of the cheap one.