I have some spare BITBTC in my wallet from the BOMB migration. Unforunately I don’t have any fresh capital to pair this with BTCB in the BITBTC-BTCB-LP over on bitbomb.io.
Therefore I thought I may as well put those funds to work in the CZBOMB-BITBTC-LP pool over at czpegs.com.
However, as BITBTC is currently under it’s BTBC peg, converting half of my BITBTC to CZBOMB is classed as a taxable event.
As far as I’m aware, as long as BITBTC doesn’t route through BTCB when sold, it does not harm the BITBTC-BTCB peg.
Therefore selling BITBTC for CZBOMB via a direct route (i.e. the CZBOMB-BITBTC-LP) does not hurt BITBTC-BTCB peg but does however help the CZBOMB-BITBTC peg.
With the sell taxes under peg on bitbomb.io as opposed to bomb.money, doesn’t this negate the main purpose that the CZBOMB token exists, i.e. to help restore/bolster the BITBTC-BTCB peg?
Is there a way to remove taxes when BITBTC is sold for CZBOMB, i.e. if it’s zapped into the LP?
I understand that people could exploit this to sell BITBTC under BTCB peg via first converting to CZBOMB and then selling for something else (although CZBOMB would have to be above it’s peg in order for that subsequent sell to still not be taxable).
What are your thoughts about this? It would be interesting to discuss.