Overview
Crypto communities in Thailand have been excited about Terra and projects on Terra (Mirror, especially). This is evidence from the rapid retweets of this tweet calling for TerraTHB.
THB is also #15 by marketcap on [fiatmarketcap.com](https://fiatmarketcap.com/. This is only two spots below CHF and four spots above SGD. Both CHF and SGD are already on Terra.
The proposal
proposer: Tanwa Arpornthip
- BLOCK research team, Prince of Songkla University
- Co-founder of Sabai (We run the StakeSabai Terra node.)
I propose to add THB to Terra swaps.
However, since the liquidity for THB might be smaller compared to existing Terra swaps, the tobin-tax should be adjusted accordingly. According to BIS’s 2019 report, pg. 77, THB’s liquidity is less than the top 10 currencies, but definitely more than MNT. So tobin-tax value between the default 0.25% and MNT’s 2% sounds reasonable.
To find a reasonable tobin-tax for THB, the bid-ask spread as announced by Bank of Thailand. As of the writing of this proposal, USDTHB has a bid-ask spread about 1.2%. Since we want Terra to be competitive compared to traditional finance, tobintax should be less.
I propose THB tobin-tax at 0.75%.
Type
Parameter-change
Changes
[
{
"key": "whitelist",
"value": "[
{\"name\":\"ukrw\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"usdr\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"uusd\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"umnt\",\"tobin_tax\":\"0.020000000000000000\"},
{\"name\":\"ueur\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"ucny\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"ujpy\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"ugbp\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"uinr\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"ucad\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"uchf\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"uhkd\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"uaud\",\"tobin_tax\":\"0.003500000000000000\"},
{\"name\":\"usgd\",\"tobin_tax\":\"0.003500000000000000\"},
+ {\"name\":\"uthb\",\"tobin_tax\":\"0.007500000000000000\"}
]",
"subspace": "oracle"
}
]
Cost / Benefit analysis
Benefit:
If TerraTHB is added, Thai users will receive the following benefits:
- An access to a decentralized, THB stablecoin
- Ability to include THB into a risk-diversified investment portfolio with other fiat currencies
Non-Thai users will receive the following benefits:
- An exposure to a strong currency. THB has been making a strong gain against most currencies in the last 5 years. https://www.tradingview.com/x/EDyG9sWG/
- A potential exposure to a developing-country’s economy in SEA. While SGD is already on Terra, but SG is a developed country. An exposure to Thai economy could help diversify investment in this region.
- Another FX currency to trade on Terra.
Cost:
Oracle feeder providers will have to upgrade software to support the new pairs being added, and validators will have to make sure they run the new and upgraded software. Submitting oracle votes will also now be slightly more expensive.
Next steps
This proposal will sit in agora for the next two weeks before the proposal is submitted onchain.
