Most AMMs have safety rails to prevent swaps with high price impact. Regular users of other AMMs can and will be expecting such safety rails in station.terra.money/swap and will lose funds. All other AMMs display expected price, not “pair price”. The displaying of “pair price” above the expected price leads to confusion. (I am a very experienced AMM user and lost a lot of funds this way. I have created another separate proposal called “Compensation price impact safety rail” about this.)
Yes, if one knows there are no safety rails and understands what “pair price” and “expected price” are, they possibly will never lose funds. Anyone who gets used to all other AMMs will likely one day lose funds in station.terra.money/swap because when we make many transactions every day, we get used to checking certain signs to know if our operations are ok or not. We don’t have time to double check every single parameter to make sure everything is fine. It is similar to when we get used to our car turning off its lights automatically, we easily forget to turn off lights in a car that doesn’t, and we then find the car without battery. Luckily, that doesn’t cost us 20k.
Proposal:
- Display expected price above pair price
- Display price impact
- Display price impact in orange if above 3%
- Display price impact in red if above 5%
- Prevent swaps with price impact above 10% (If desired, users can simply perform multiple swaps in which the price impact is lower)
Proposal 167 “Price impact safety rail”
I know that many of you are now very rich, please consider taking pity on me and compensating some of the funds I lost. You can see the terrible swap here: 302BAF2AE014AD6BF3FCA43F265CE36E48A195A9EEA88DCF278E0DF15DB5B59E.
It all goes to non profit work I do. https://prosocialise.org/_index.cgi
(the website is not yet fully operational although I have been doing this work for a decade already you can see some of it at https://changingtheworldiseasy.com/)
You can see more of it here: Transition to a Shared World