Proposal to Whitelist arNXM
Voting objective:
For: add arNXM to the Bancor whitelisted tokens with 500k BNT coinvestment liquidity provider rewards
Against: do not add arNXM to the Bancor whitelisted tokens
Quorum needed: 40%
The Armor ecosystem: DeFi cover, reimagined.
Project Website: http://armor.fi/
Project Documentation: https://armorfi.gitbook.io/armor/
Armor is a coverage broker for DeFi, that offers “pay as you grow” coverage for smart contract bugs and attacks. All Armor cover is underwritten by Nexus Mutual.
The benefit to the DeFi ecosystem and its users is that Armor cover is:
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permissionless (Nexus requires KYC), and
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flexible with regard to coverage amounts and policy duration (“Pay as you Grow”).
Armor coverage is enabled by the arNXM yield vault.
The arCore Smart Cover System tracks the user’s funds and allows cover that is based on the exact holdings, while being billed per second with no cancellation period.
The upcoming arShield product offers LP/Staking cover that is paid directly from the LP/Staking rewards, offering secure staking for liquidity providers without any upfront costs.
Both arCore and arShields will utilize coverage underwritten by Nexus Mutual, and thereby, the arNXM yield vault.
arNXM tokens
arNXM is the yield bearing token for the arNXM vault.
The arNXM Vault accepts the Nexus Mutual wNXM/NXM tokens and puts it to work to produce yield. This is done by unwrapping and staking the wNXM (or NXM) tokens in the Nexus Mutual ecosystem.
Upon deposit of wNXM/NXM, users receive arNXM in return. arNXM can be traded freely, just like wNXM, but it also accrues staking rewards. arNXM produces yield in terms of the underlying token. Holders will arNXM will enjoy:
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Additional yield from staking rewards
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Price exposure to the underlying assets (wNXM/NXM)
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Armor’s coverage for coverage providers’ for minimal risk staking
Armor in numbers.
For detailed stats on Armor.fi (coverage, staking, premiums paid etc.), please visit: https://duneanalytics.com/armor/armorfi
Benefits for Bancor:
Armor Liquidity mining rewards
The token distribution model for ARMOR includes special provisions for kick-starting liquidity on decentralized exchanges. This has already been implemented on 4 popular AMMs and we want to add Bancor to that list. It is anticipated that if this vote passes, Bancor would become one of the largest, if not the largest LP for all arNXM liquidity pools.
Current AMM liquidity and trading fees
Only a month after launching, the various arNXM pools on Uniswap, SushiSwap, 1Inch and Balancer (pooled with ETH, wBTC & Dai) have already attracted about $30m in liquidity.
Uniswap alone has $6.2m liquidity divided over the different Armor and arNXM pools, with a trading volume of over 1m daily. The total trading volume is close to $4m daily, generating significant fees for the liquidity providers.
The price of arNXM is dynamically changing with respect to wNXM (which is already whitelisted on Bancor) based on change in assets under management (because of staking rewards, or during hack payouts, and debt payments). This creates opportunities for arbitrage traders due to an imbalance between arNXM/wNXM prices, which will massively increase volume for both tokens and thereby fees.
8 million Armor in rewards
During the first run of this proposal, it was agreed that the Armor would contribute 1,000,000 Armor tokens as staking rewards for ARMOR:BNT and arNXM:BNT pools upon successful whitelisting. This will be in addition to BNT rewards and will not only benefit our current BNT holders and liquidity providers, but it will also attract many new ones to the Bancor platform.
With this proposal, the Armor team will do even better:
Armor will offer 100K Armor per week in farming rewards for the arNXM pool to start, with 0.51% decrease per week, for a total of over 8m Armor over 2 years!
We would like clarity on how the 500k BNT rewards will be implemented on this plan.
Armor rewards will match BNT rewards.
BNT rewards allocation:
70% to BNT LPs and 30% to arNXM LPs
Armor rewards allocation:
70% to arNXM LPs and 30% to BNT LPs
This means 2.4M Armor tokens will be awarded to BNT LPs and 5.6M will be awarded to Armor LPs over the course of 2 years.
BNT: the DeFi coverage token trading platform
Due to our existing relationship with Nexus Mutual, and the recent success in stimulating growth on the wNXM pool, the addition of arNXM to the whitelist schedule could position Bancor as the default trading platform for DeFi coverage tokens.
This could be an important niche, and Bancor is uniquely poised to capture it. It is worth noting that the active Armor community -The Armor Knights- is highly motivated to make this vision a reality; many are already BNT holders, and are active participants in our DAO already.
Note: the above has been proposed before recently (proposal #34, 17-20 Feb) and 100% voted in favor. We were unable to reach quorum due to high gas fees. This time, we trust that the Bancor community will help the proposal across the finish line.
Contract Addresses:
arNXM: 0x1337def18c680af1f9f45cbcab6309562975b1dd
Available Audits
The Armor smart contracts have been audited by Haechi, and the reports are available for review via the ArmorFi GitHub page: https://github.com/ArmorFi/Audits
Market and Trading Data
arNXM
Market cap = Fully Diluted Market Cap: $20,548,208.09
Circulating Supply: 432,669.72
24 Hour Trading Volume: $137,084
Exchange Availability
Top exchanges for arNXM are Uniswap (V2), Sushiswap, 1inch Exchange, and Balancer.
Information, sources and socials:
Armor ecosystem documentation: https://armorfi.gitbook.io/armor/
Coingecko arNXM: https://www.coingecko.com/en/coins/armor-nxm
Medium: https://medium.com/armorfi
Twitter: https://twitter.com/armorfi
Telegram: https://t.me/ArmorFi
Discord: https://discord.com/invite/8HuTB22
