Totally understand your concern. To clarify though :
so you are asking for an unsecured loan the size of the community pool?
- There is no unsecured loan. A loan implies Duality would have ownership over the funds and be able to use the funds at will, while being required to pay them back after some time frame. This is not how the liquidity injection works though. Noone at Duality Labs will custody the funds at any point, nor will they be able to use the funds at will. The funds would only be used as described in the proposal with no participation from Duality Labs and the funds go back to the community pool afterwards.
- As for the size. 500K ATOM is not the size of the community pool. The community pool has more funds and this is only a fraction of those. It’s also worth noting that the community pool still has rights over the temporarily LPed funds so they are not being stripped from the community pool.
by farming i mean a repetitive process of harvesting liquid tokens (atom’s CP) in exchange for some intentionally/unintentionally useless inflationary token.
- There is no useless inflationary token being exchanged for ATOM in this proposal. ATOM would be liquidity provided, and the community pool would receive the swap fees from that liquidity provision.