End Temporary ICHI Liquidity Reduction (Return to 2M $BNT Trading Liquidity) and Increase Trading Fee to 1.3%

This proposal is expected to appear on Snapshot for voting on 2/21/23 at 6:00 PM GMT. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

Proposal reviewed by @primalglenn.


  • Bancor to update the ICHI-BNT pool fee to 1.3% to increase protocol revenue
  • Bancor to revert back ICHI on-curve liquidity to what it was prior to the temporary reduction in July 2022 (scheduled increase included) which was 2m $BNT

Background & Rationale

  1. ICHI trading liquidity limit was increased to 1M BNT on February 2, 2022 with 49.08% quorum and 100% for votes.
  2. ICHI trading liquidity limit was increased to 2M BNT on April 3, 2022 with 46.99% quorum and 89.53% for votes.
  3. Temporary ICHI trading liquidity decrease on July 20, 2022 with 46.99% quorum and 100% for votes.

Since the most recent Bancor vote, ICHI has launched 40+ new vaults with partners locking in over $13M in TVL and automated liquidity strategies on-chain using Chainlink Keepers.

ICHI plans to work with the Bancor DAO to increase Bancor protocol revenue through increasing the pool fee tier to 1.3% and increasing on-curve ICHI liquidity to enable higher volume of trades to be routed to and executed by the BNT-ICHI Bancor v3 pool.

Benefits to Bancor

  • Increased protocol revenue due to higher fee tier
  • Deeper liquidity leading to higher trading volume on v3 pool

Growth Schedule

Current trading liquidity is 45,385 $ICHI and 422,870 $BNT.

Suggested $ICHI trading liquidity growth Schedule:

  1. 45,385 $ICHI
  2. 90,770 $ICHI
  3. 181,540 $ICHI
  4. ~220,000 $ICHI (based on price targeting the initial $2M in $BNT)

Note the growth of $ICHI trading liquidity is based on what is currently on the bonding curve and it is always doubled from its previous value.

For: Approve growing trading liquidity on the $ICHI pool to 2m $BNT and increasing pool fee to 1.3%

Against: Do nothing


If all the ICHI was to move on curve, how many BNT would be required to pair with the ICHI?


Thank you for the proposal @dhtal . I’d prefer to see the trading liquidity increases showed in BNT numéraire as was done in past proposals, so the DAO can get an understanding of how much BNT would be minted if the proposal passes. Another suggestion is to specify a target % of the TL.


Hi Steven!

There is 694k ICHI in V3 that can be made available for trading and at current price of $4.22 per ICHI this means that this is about $2,928,680. At a price of $.474 per BNT, this means that ~6,178,649 BNT would be required to make all this ICHI available for trading.

Note that this proposal is seeking to only increase the trading liquidity to 2m BNT which is about 1/3rd of that. (screenshot for context)

photo_2023-02-17 16.58.13


Hey Tiago!

This proposal is seeking to increase the trading liquidity to 2m $BNT for the ICHI pool (the previous amount prior to reduction). Per the screenshot, this is an increase of 1,769,000 BNT of the “BNT Funding Limit” and about ~1,585,431 increase in the "BNT Trading Liquidity. (attaching a screenshot for context)

photo_2023-02-17 16.56.11


Hi Daniel, thank you for posting the information. The largest increases in Trading Liquidity proposed so far on any pools have been of 1m BNT at a time. I’d personally prefer to see a proposal for a 1m BNT increase vs 1.769m, and then a future proposal to increase the trading liquidity.

FIY the whitelisting and quorum requirements for this proposal are >40% quorum and >66.70% supermajority.


Hi Tiago!

Thanks for the comment. I will say - this is returning the pool back to the state it was in just a few months back and not looking to whitelist something new or grow the on-curve liquidity to something it hasn’t been before. With that in mind, I am not sure it is directly comparable to other proposals seeking to grow liquidity to new levels. To me this seems great for Bancor because it has multiple ways of growing protocol liquidity.

Could you please provide specific reasons you’d prefer the liquidity grow slower and over what timeline if that is the case? I’d want to understand the reasoning behind that strategy a bit more. :slight_smile:

1 Like

Thank you for your reply Daniel. I agree with the statement that it isn’t comparable. Furthermore, any associated risk with trading liquidity increases is reduced at the moment since the ILP is paused.


I agree with Tiago here; using historical precedent on liquidity changes is the fairest way to do things.