TIP24: Adding TerraTHB stablecoin

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.

17 Likes

This should not be TIP24. Just ignore the proposal number. Let me know what the community thinks!

4 Likes

Also, thanks to the original text proposal for the impetus for this paramchange proposal.

https://station.terra.money/proposal/28

2 Likes

That’s a great news. Hope to see TerraTHB on exchange listed soon.

1 Like

Do Thai people still be No.1 users Mirror ?
Please list TerraTHB Thank you.

good job.

I think this will drive a new era of spending money rapidly in the real world connected to cryptocurrency Of course, Thailand can now see that it has truly stepped into a cashless society.

Good Job.

Yeah, Thai people need it and not only Thai people for sure, cheers!:tada: