Good breakdown, @rimurutempest The move from idle treasury to active liquidity is a logical step for any network trying to maximize utility, but databaron raises a valid point about the scale.

185k total added to liquidity is modest. While it helps with price impact on smaller swaps (4.9% to 4.1%), it won’t solve deep liquidity issues for whales. But as a first governance proposal, it’s more about testing the voting mechanism than solving all DeFi problems at once.

The impermanent loss risk is real though. If RON keeps sliding toward its ATL while WETH holds steady or rises, the treasury’s value in USD terms could erode faster than the LP fees earn back. That’s the classic trade-off of providing liquidity with volatile assets.

Still, keeping the LP tokens in the treasury ensures they retain ownership and can pull funds if needed. It’s safer than handing them over to third-party stakers.

Governance is just starting, so small steps are expected. Let’s see how the community votes.

#Ronin #DeFi #Governance #Crypto