As of now, the token OADA is not verified on Minswap let alone it does not have a liquidity pool on Minswap.
Given all the liquidity is on the Splash Dex, the first step would be for Minswap to create a Minswap-native OADA-ADA LP. This can be done using the $min.fee-dao wallet with 250k ADA deposited into Optim for OADA and subsequently paired against 250k ADA, ideally in the stableswap protocol on the backend - someone will need to check my math in this regard such that the peg for ADA-OADA will be 1:1 initially.
These numbers were randomly chosen with the following in mind: it must be large enough to ensure no malicious actor can drain it one-way but, small enough such that an arbitrage opportunity exists for the users
Now, this itself may not maintain the ADA-peg as Optim would not initially support minting into the ADA-OADA pool Minswap directly but, this is where a big marketing campaign can be done to encourage users to arbitrage against the Minswap OADA-ADA LP themselves such that:
a.1. They as the users get to profit off the de-peg (not Optim’s sOADA mechanic)
b.1. Minswap’s batcher continues generating fees
Taking this a step further would be to setup a portion (ideally all but, the stability of the OADA-ADA Minswap LP would need to be tested first) of the $min token LP against OADA instead of OADA such that:
a.2. When trading ADA for $MIN, people are routed through the ADA-OADA LP generating fees for the batcher pools
b.2. It demonstrates the routing feature of Minswap V2
This implementation would serve as a proof of concept for promoting all future token LP’s on Minswap to pair their ADA against OADA and setup their Token ‘x’ in a x-OADA LP. This would amplify the benefits of points a.2 & b.2 above for all future trades on Minswap.
A couple risks & disclaimers here:
- The stability of the OADA-ADA LP is paramount to ensuring such an endeavour is viable. As of now, Optim is not supporting Minswap for their own OADA-ADA arbitrage AMOs such as their implementation with Splash - hyperlinks are to Optim Finance’s official docs explaining the term AMO/integration with Splash. This might be possible to workaround as, should users or bots be able to simply trade the OADA from Splash and use that to arbitrage against Minswap’s LP, the stability can be maintained artificially. For this, I defer to individuals in this forum likely smarter than me to determine it’s possibility. This step is critical.
- The purpose/endeavour behind this approach is two-fold namely a2 and b2 above. As of now, Minswap is still more or less in it’s V1 form except for being faster and and having 2/3 different order mechanics. This would help demonstrate it as a Dex engaging in the broader DeFi ecosystem.
- With such an endeavour underway, it might even prompt Optim to integrate Minswap as a Dex through which their AMO’s are powered to generate yield for their sOADA. The thought flow here is as follows: Should Optim not integrate Minswp directly and, one can actually arbitrage against OADA and generate a higher ROI on their initial ADA than sOADA offers, it would be redundant to be holding sOADA but rather, simply arbitrage on Minswap. This would be a detrimental look on their side so, they would be forced to include Minswap in their AMO suite or, well, if it works out, risk making sOADA seem redundant to hold.
For going forward with this, please discuss point 1 above at length to determine if a peg can be synthesised without the direct ability to mint OADA into the ADA-OADA LP that would exist on Minswap.
This might be able to dummy-trial using a 20k ADA (10k-10k) LP of ADA-OADA through which arbitrating success & ADA-peg of the OADA LP on Minswap is first tested.
For a deeper read on OADA, please defer to the official Optim Finance docs here.