Discussion: Change the fee in the vBNT pool

Discussion: Change the fee in the vBNT pool fee from 0.15% to 0.1%.

TLDR

  • The vBNT pool fee was recently increased from 0.75% to 1.5%.
  • Some community members have expressed their concern that the vBNT/BNT pool is an essential piece in using vBNT as a liquidation-free loan against their stake position.
  • Other concerns addressed the pool vBNT distribution, alleging that only a select few LPs that managed to stake in the pool have benefited from the change.
  • Data around the pool’s performance before and after the fee change, as well as its distribution, is presented. A poll in this thread allows to assess the DAO’s sentiment about decreasing the vBNT pool fee from 1.5% to 1.0%.

Abstract

A snapshot of the pool’s holdings 1 week before the change as well as the current ones is provided.


Figure 1 - vBNT pool distribution 1 week before the pool fee change.


Figure 2 - Current vBNT pool distribution (as of the 15th March).

It can be observed that the top 4 and top 10 vBNT LPs by relative position own 53.7% and 72.40% of the pool’s liquidity 1 week before the pool fee change, and 54.4% and 72.70% of the current liquidity as of the 15th March.

The number of LPs that own at least 0.1% of the liquidity is 63 (representing >99% of the liquidity) for the pool 1 week before the fee change and on the 15th March.

Data on the pool 30 days before and 30 days after the fee change was obtained, to understand how the pool fee change has impacted volume and collected fees.


Figure 3 - vBNT pool average daily volume and fees 30 days before and after the fee change.

It can be seen that the average daily volume has decreased $73,685 or 34.79% after the fee change, while the average daily fees collected have increased $472 or 29.5%.

Finally, it should be noted that on Bancor 3, the vBNT pool will not be capped in size, meaning that any LP will be able to provide liquidity to it.

  • Decrease the pool fee in the vBNT pool to 1%.
  • Keep the pool fee in the vBNT pool at 1.5%.
  • Decrease the pool fee in the vBNT pool to 0.75%

0 voters

Pologon hands down better performance

Great idea! Bringing the fee back to 0.75% sounds more than reasonable to me.