LM rewards for Enjin Coin and increase co-investment of 2M BNT

Proposal to activate LM and increase co-investment of 2M BNT for the BNT/ENJ pool

TL;DR

  1. ENJ has been a testament to community loyalty to Bancor, and has remained a valued contributor to the ecosystem over the entirety of Bancor’s product development history.
  2. This proposal seeks to activate liquidity mining incentives on the ENJ pool.
  3. Concomitant with the LM program, this proposal seeks to increase the protocol co-investment limit to 2M BNT.

Voting Instructions

To activate LM on the ENJ pool, and increase the protocol co-investment to 2M BNT, vote FOR.

To deny the ENJ pool from receiving liquidity mining incentives, and an increase in co-investment limits, vote AGAINST.

Meet Enjin

The ENJ pool is a Bancor veteran. ENJ liquidity providers have been loyal members of the Bancor community long enough to witness both the v2.0 and v2.1 protocol upgrades. Their pool is among the most performant on the Bancor ecosystem, and has consistently maintained its status as the deepest non-incentivized pool on the Bancor Network. The pool has recently started punching above its weight; its closest analogue on the network is BAT, having slightly more than half the depth, and the same pool fee. However, ENJ has attracted significant swap volumes, disproportionate to its size relative to BAT. It is apparent that this could be a monster offering, if the DAO gives the pool some room to perform.

In short, ENJ LPs have demonstrated a long-term commitment to the Bancor protocol, perhaps more than any other token community. The pool is highly performant, and there is every indication that this could be an absolute overachiever in the Bancor ecosystem.

Figure 1 | ENJ volume (purple) compared with BAT volume (black) on Bancor.

Details

The ENJ pool has been deprived of BNT co-investment increases since launch, and has had little or zero room for single-sided ENJ deposits. To support the pool’s potential, this proposal seeks to activate liquidity mining incentives with a protocol co-investment increase to 2M BNT. This will create space for all the patient ENJ holders waiting on the sidelines, and add fuel to the growing interest in Bancor exhibited by the ENJ community.

Token contract address: 0xf629cbd94d3791c9250152bd8dfbdf380e2a3b9c

Website: https://enjin.io/

Telegram: Telegram: Contact @enjin

How will this benefit the Bancor protocol?

At the time of writing, Enjin has more than $500mill 24H total volume; the Bancor ecosystem is capturing only $714k of that. Growing this pool should help to access a more substantive share of the market trade volume. Without native staking available for ENJ, providing liquidity at Bancor is an attractive option for ENJ hodlers to earn passive yield.

Enjin has previously integrated Bancor as an exchange option in their own Enjin wallet, giving us the chance to be the go-to for ENJ trading. Enjin has a huge community of traders, with several sub-communities in their adopted Enjin games. By every indication, this is a community that uses the Bancor protocol for its intended function, and the value in improving our product offering for this demographic is self-evident.

About Enjin

In 2009, Enjin launched the Enjin Network, a gaming community platform that boasts over 20 million users. In 2017, following a successful ICO that raised $18.9 million, Enjin began building a suite of blockchain products that enable anyone to easily create, manage, trade, store, explore, distribute, and integrate blockchain assets. Today they are working with the likes of Microsoft, Samsung, BMW and Atari, to name a few.

Comprising the Enjin Platform, Explorer, Wallet, Beam, and other tools and services, Enjin’s tools enable game developers and studios to utilize tokenized digital assets as part of their acquisition, retention, engagement, and monetization strategies. The Enjin ecosystem is fueled by Enjin Coin (ENJ), an Ethereum-based cryptocurrency used to directly back the value of Enjin-powered blockchain assets. For more information, visit https://enjin.io.

5 Likes

Brilliant proposal, I think this would be worthwhile

2 Likes

Great proposal! I’m in. You forgot fresh news about Enjin L2

2 Likes

How about 2m co-investment without LM?

1 Like

I think this is actually not a good use of LM reward investment. We already have a liquidity advantage vs Uniswap and Sushiswap for ENJ.

We already capture a majority of volume from 1inch referrals. We commonly use this metric to view fair routing based on the liqudity share.

Additional liquidity is unlikely to draw more volume to pay for the LM here. The LM for this should instead be invested in other non-existing pools, such as AKRO, DUCK, FTM. We can grow more competitive pools quickly, even in days (see UNI, GRT) with LM elsewhere.

2 Likes

This is a good alternative I would be for as long as no LM.

I think this is a necessary step. Let’s do it.

Great idea! Lessgoooo

I think the LM rewards are unnecessary but i am good with opening up more space in the pool, seems economically sound with the amount of volume and fees it collects.

1 Like

Huge pool size it’s result ENJ price growing (x7 in this year), not the liqudity adding.
Last liqudity adding was 31 days ago and after that only liqudity removing (ENJ Smart Token Relay (ENJBNT) Token Tracker | Etherscan).
Majority pool part it’s Bancor or Enjin team, and in one time can happening what was happens with PowerLedger pool - full removing in 1 transaction
Ethereum Transaction Hash (Txhash) Details | Etherscan
Top holder ENJBNT relay (8 000 000 - 72,9%) 0xde63aef60307655405835da74ba02ce4db1a42fb - it’s not IL contract, IL contract (0xd1d846312b819743974786050848d9b3d06b9b55) have only 2 913 264 ENJBNT relay
ENJ Smart Token Relay (ENJBNT) Token Tracker | Etherscan