Increase the trading liquidity limit in the MFG pool from 400k BNT to 800k BNT & Fee Tier to 1%

DAO Archive (SUBMITTED)
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**Increase the trading liquidity limit in the MFG pool from 400k BNT to 800k BNT & Fee Tier to 1% **

For this proposal to pass, it requires a 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on 2022-05-28T23:00:00Z, . Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

  • The MFG pool has recently been whitelisted (Snapshot).

  • The MFG liquidity balance has recently been increased from 50k to 100k BNT (Snapshot).

  • The MFG liquidity balance has recently been increased from 100k to 200k BNT (Snapshot).

  • The MFG liquidity balance has recently been increased from 200k to 400k BNT (Snapshot).

  • Smart MFG has recently reduced the treasury LP on Uniswap v3 by 25% to attract more users/volume to the Bancor pool

  • This proposal limit increase will be the final precursor before the Bancor v3 migration & upcoming liquidity mining (LM) campaign

  • If this new limit proposal is approved, Smart MFG WILL allocate/fill 25% of the new liquidity balance. The remaining free liquidity balance will be made available for liquidity providers (LP) who wish to stake & participate in our LM campaign.

  • The MFG liquidity balance is currently near full.

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  • The MFG liquidity on other decentralized exchanges justifies proposing an increase.

  • Increasing the pool’s liquidity will improve price impact and help direct more volume to Bancor.

  • This proposal seeks to increase the trading liquidity limit in the pool from 400k BNT to 800k BNT.

  • This proposal also seeks to update the fee tier to 1%.

  • Smart MFG will incentivise the MFG pool on Bancor v3 with liquidity mining rewards.

  • We will also redirect or inform/promote this new LM campaign on our dashboard at https://rewards.smartmfg.io/. Current Uni v3 campaign ended in March and Smart MFG will prepare for the LM campaign after the release of Bancor v3. Official thread announcement found here: https://twitter.com/MFGcoin/status/1509300650970017793?s=20&t=oa2ubZoV8U_4pkkT1doBMg

Rationale

The Deepest MFG pools are:

  • The MFG/ETH 1% Uniswap v3 pool with $275k liquidity, and $23k daily volume [1].

  • The MFG/USDC 1% Uniswap v3 pool with $4.68k liquidity, and $0 daily volume [2].

  • The MFG/DAI 1% Uniswap v3 pool with $264.84 liquidity, and $0 daily volume [3].

  • The MFG 0.3% Bancor v2.1 pool with $988,956 liquidity, and $$9,008 daily volume [4].

The extra liquidity would bring the total pool liquidity to at least ~$2,000,000, if the space in the pool is filled. If this happens, a proposal to increase the trading liquidity limit again should be considered.

FOR

  1. Increase trading liquidity in the MFG pool from 400k BNT to 800k BNT.

  2. Set/Update Fee Tier to 1%.

AGAINST

  1. Keep the trading liquidity in the MFG pool at 400k BNT.

  2. Keep existing Fee Tier

[1] Uniswap Info

[2] Uniswap Info

[3] Uniswap Info

[4] Bancor: Converter 638 | Address 0x349419BcE4181d7D223442Fa48Ba9e611173A745 | Etherscan

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I like the slow and steady approach here

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Thanks @eldude. Yeah, with the guidance/recommendations from the Bancor team, we agreed to do this incrementally as we approach the v3 migration & LM campaign. Thanks again for your continued support. :pray:

4

Any thoughts about raising the fees in the MFG pool to 1%? Typically with the lower cap tokens which tend to be more volatile in nature, a higher fee is warranted.

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Hey @glenn, yes we already agreed with @tfns to increase the fee tier to 1% on v3

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6

Love all the communication and considerations made for Bancor here. Thank you for committing your treasury - will vote for this.

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Much appreciated @tenzent :facepunch:

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8

Can we include it as part of this proposal?

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Hi Glenn, I’ve asked the Bancor team to see if this was ok since we are nearing the v3 migration. Happy to include in the proposal if they recommend. Will keep you guys posted. :+1:

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10

Just updated proposal to include the fee tier to 1% :+1:

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11

love the fee change - very much on board

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12

Glad to see the fee change. Thank you for being so active in our governance forum!

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13

Thanks @tfns for your help :facepunch:

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Thanks again everyone for your support. We just announced the latest vote. :+1:

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