LM extension with deminishing rewards

I think it would be a good idea to extent the LM progrogram but half the total bnt allocation every month. The growth of the protocol/ increase in bnt price should keep the apy high enough, and that way we would avoid an abrupt change from a high % apy to 0, which might lead to a big decrease in total liquidity on the bancor protocol.
Let me know your thoughts on this

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I’m thinking the same thing, but the program was for 72 weeks so maybe another 100-200 days with full rewards on current pools and then a linear taper over the rest of the 72 weeks?

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Definately need some ideas to decrease the rewards over time, currently fully diluted market cap is about 1/23 of Uniswap, but they have all the volume. There is some room to use rewards to bait LP’s perhaps even specifically making a “one button” swap from an LP on Uni or Sushi over to bancor with an instant bonus that is locked for say 1 year.

Make it “SUPER EASY” to switch?

What about instituting a floor guaranting say minimum of 15% return on ETH or other TKN for a year including (LP fees and Rewards) with a minimum ~5% LP Reward + Fees Generated?

How about returning gas fees to switch as a reward over 100 days to get more LP’s?

Sushi has proven that the amount locked in LP’s or Liquidity does not = a higher number of users.

Should we be more user/ trader focused? Better UI, Better Charts, Profit Brag Tweet links?

Instant ARB to trade bancor vs other L1 DEX’s?

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Sushi has proven that the amount locked in LP’s or Liquidity does not = a higher number of users.

This is an excellent point. It got me thinking, how could Bancor attract more volume?

Could Bancor do something similar to paying for order flow to increase trading volume? While the practice of payment for order flow was cast in a negative light thanks to the GME/Robinhood drama, payment for order flow is proven to reduce spreads. Would it be feasible to create a tiered rebate of fees based on a trader’s aggregate transaction volume through Bancor during some set period of time?

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The quickest way to attract more volume is with lower fees. <0.0075%. Same way binance beat the rest of the exchanges.

Binance had the best user interface too with super fast software.

With the high gas fees, I would hope that a high quality super easy to use user interface would trump lower fees. Compete on quality not price, I believe that nobody wins a price war.

You win by volume. People think they have the moral high ground and thus are more vocal, we weave the story of UI and better service, don’t want a race to the bottom ect.

But most people, the silent majority are practical and if it’s cheap, they will come even if you have horrible customer service, same reason why people cannot resist cheap goods from China.

Edit: It is about setting there right incentive structure. Understanding sociology is the key to setting up good blockchain governance structure.

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What about offering a gas subsidy while gas prices remain at elevated levels?

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The two are independent.

Lowering prices helps us beat other exchanges (ie binance, uniswap).

  • Bancor doesn’t need to pull this lever until it is ready for the load.

Subsidising gas brings in liquidity. I suspect with the current incentive (high APY LM rewards) we are already sufficiently liquid. High gas is also a problem that will be solved by the greater eth eco system.

  • Gas subsidy will bring in more people and result it needing more subsidy which is not sustainable.
  • the established way to bring liquidity (APR/rewards) is a more cost efficient lever

Source: I manage companies and set up incentive to make them do what we want them to do

Only if we continue the high APY LM rewards. Didn’t a renewal vote just fail?

Voting is under 40% but this one only needed 20% to pass, it was 34%.

See: LM rewards extension ETH, WBTC, LINK, USDT, USDC, DAI - #11 by TXSharp

Any possibility of the Ren/BNT pool being extended next? Even if the rewards are diminished.

You’ll have to draft a proposal and bring it forward to be voted on.

Understood on all counts, thanks for the clarifications.