Vote Opens on Adding Locked Liquidity Tokens to Alice’s Portfolio

A proposal that could reshape Alice’s trading algorithm is now up for a vote. The motion suggests that any token forming a locked Bob liquidity pool with a Total Value Locked (TVL) exceeding $100,000 should be automatically added to Alice’s portfolio. The move aims to set a minimum standard for portfolio inclusion, ensuring that only tokens with sufficient liquidity and stability make the cut. The requirement that liquidity remains locked prevents sudden withdrawals that could leave Alice stuck in an undesirable position.

Liquidity pools serve as a backbone for decentralised finance, providing the necessary depth for trades to occur without relying on traditional order books. By integrating more tokens into Alice’s trading strategy, the proposal seeks to leverage arbitrage opportunities while maintaining portfolio integrity. A key factor in this decision is the broader adoption of Bob pools, which proponents believe signals growing on-chain activity. More liquidity pools tied to Bob not only expand trading possibilities but also align with the ongoing narrative of strengthening its ecosystem.

The proposal follows majority backing in a poll conducted on X, reflecting a strong community interest in refining Alice’s investment criteria. If approved, it introduces a structured approach to token selection, balancing the need for opportunity with the caution required in volatile markets. The locked TVL requirement acts as a safeguard, ensuring that only tokens with sustained liquidity are included, reducing the risk of exposure to short-lived projects or malicious withdrawals.

A primary consideration behind the proposal is avoiding exposure to potential rug pulls—schemes where liquidity is suddenly drained from a pool, leaving investors with worthless tokens. By enforcing a locked liquidity requirement, Alice’s portfolio would remain insulated from such risks, focusing only on assets that demonstrate stability. The $100,000 TVL benchmark also creates a natural filter, allowing only projects with significant backing to be included.

The proposal’s supporters argue that its benefits extend beyond Alice’s trading algorithm. More Bob pools translate to increased engagement with the ecosystem, which can, in turn, drive further adoption. The interconnectivity between Alice and Bob pools strengthens the network effect, reinforcing the standing of both within decentralised finance circles. Additionally, investors backing Bob and Alice projects see this as a step toward greater interoperability, making the ecosystem more attractive to developers and traders alike.

While the proposal does not dictate permanent inclusion, it provides a clear mechanism for portfolio adjustments. Tokens that meet the TVL requirement will be added, but they can also be removed via a separate vote. This flexibility ensures that Alice’s portfolio remains dynamic, adapting to shifting market conditions while maintaining the overarching goal of sustainable growth. The mechanism provides a level of governance that allows the community to influence portfolio composition, making it a collectively shaped strategy rather than a rigid set of rules.

Community-driven decision-making is at the heart of decentralised finance, and this proposal highlights that principle. By putting the motion to a vote, token holders retain control over the direction Alice’s portfolio takes. The ability to adapt in real-time ensures that investment decisions remain responsive to evolving market trends. The proposal itself is a reflection of how decentralised governance can shape the trajectory of investment strategies without the need for centralised oversight.

Critics, however, might point to potential drawbacks. While the locked liquidity requirement mitigates some risks, it does not entirely eliminate concerns around price volatility or project legitimacy. A high TVL does not necessarily equate to long-term sustainability, and projects with substantial initial liquidity can still fail due to poor fundamentals. Additionally, the inclusion of new tokens in Alice’s portfolio does not guarantee profitability—market conditions, token utility, and broader sentiment all play a role in determining performance.

Despite these considerations, the proposal aligns with the broader shift towards automation and strategic risk management in decentralised finance. Arbitrage opportunities play a crucial role in market efficiency, and by enabling Alice to tap into additional liquidity pools, the proposal positions her to maximise revenue potential. More trading pairs mean a greater chance to identify price discrepancies, allowing for swift execution of profitable trades. The added diversification could also reduce dependency on a limited set of assets, providing a buffer against market downturns.

For investors monitoring the evolution of Alice’s portfolio, the vote represents an opportunity to shape its future. Supporters believe it lays the foundation for a more robust and adaptive trading strategy, reinforcing the long-term viability of both Alice and Bob ecosystems. Detractors may call for additional safeguards, such as enhanced vetting criteria or periodic reviews of included tokens, to further refine the approach.

With voting open on the NNS Motion platform, the outcome will soon reveal whether the community sees this as a step forward or an unnecessary risk. The result will set a precedent for future portfolio adjustments, establishing whether liquidity-based inclusion is a viable model or if additional considerations are needed. Either way, the proposal has sparked discussion about balancing automation, risk mitigation, and governance in decentralised trading strategies.

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Maria Irene
Maria Irenehttp://ledgerlife.io/
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.

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