The WOOBNT pool has undoubtedly been a success for the protocol. The synergy between the projects and the community is one we should aim to have with more projects in the future.
The WOO community has been asking about a co-investment increase on the WOOBNT pool to open up space. Regardless of my personal opinion, I thought it would be a good idea to debate it here for permanence and to understand whether a proposal should be made. Some points to consider:
- The WOOBNT pool has the #2 highest volume on Bancor, right after the ETHBNT one (Figure 1).
- The pool has the #2 highest APR and #14 highest liquidity in the protocol.
- The pool can cover trades of around 100k WOO with price impact <1%.
- Pool liquidity is the deepest in any DEX right now.
- The co-investment limit was increased to 500k last month .
- LM rewards are a fixed amount/week for the pool, so increasing liquidity will dilute the APY (currently at 9.25% for WOO side and 59.09% for BNT side).
- Increasing liquidity in the pool decreases price impact on larger trades but also dilutes the APR from swap fees if no extra volume is brought due to it (currently at 22.63%).
- We can also experiment increasing swap fees APR by increasing the swap fee %, currently at 0.2% (will need some analysis on what fees other DExes have right now so aggregator volume is still routed through this pool).
Figure 1 - WOOBNT pool on Bancor (taken on the 10th of June 2021)
- 27/04/2021: WL proposal 
- 10/05/2021: Increase Co-investment to 500k BNT 
- 24/05/2021: Active LM rewards