This proposal is expected to appear on Snapshot for voting on June 26, 2022. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
To pass, this proposal needs a quorum of 35% and 66.7% FOR votes.
● Impermanent loss protection (ILP) is not currently enabled on the Bancor Network
● Two protections that are in place - the cooldown and the withdrawal fee - may be removed while ILP is not active without apparent risk to the protocol
The cooldown and the withdrawal fee are proposed to be removed while ILP is not currently enabled.
Vote FOR to remove the cooldown and withdrawal fee while ILP is not enabled
Vote AGAINST to take no action
Just as clarification, would those currently in cooldown automatically be advanced to allow for immediate withdrawal?
Ready to vote yes on this
I am from the Lyra core team (a DAO using Bancors pools with treasury funds) and I fully support this proposal.
Many users entered bancor with the promise of IL protection, now that IL protection is no longer active BIP21: DAO Multisig Intervention Policy , users should be able to choose if they want to accept the current haircut to withdraw without being held for another 7 days potentially incurring a larger loss or keep their funds in bancor pools in the hopes that IL protection is turned back on. Many DAOs have entrusted their treasury funds with Bancor and need to mitigate their own risks while waiting for a Bancor recovery plan. Nexus Mutual Joins 30+ DAOs Adopting Bancor’s DAO Treasury Management Solution | by Bancor | Bancor . Those who have experienced little to no Impermanent Loss are at risk to suffer heavily from IL if the price moves and the withdrawal window is not changed.
Allowing immediate withdrawals helps Bancor by forgiving some of the IL protection owed to users who choose to leave the pools while allowing users who do not wish to stay to leave. The reason for the cool down window is to prevent manipulation of the IL protection mechanism. While IL protection is turned off, there is no need for the withdrawal window. Since IL changes from block to block and liquidity is still active during the cool down period, this creates an unclear picture of what funds will be able to be withdrawn at the end of the period.
I’m in favor of the proposal generally. However, I think increasing the fee on the BNT withdrawal makes sense. There’s an equity consideration related to timing. People who get out of BNT earlier (and swap) could increase losses for those who are less quick. Having a temporary barrier (increased withdrawal penalty) to withdrawing BNT would allow users to make more informed decisions on withdrawing their TKN sides…
Hi there, I’m cube, elected council member serving Lyra’s DAO.
I strongly support the proposal to cancel the cooldown. As ksett already mentioned, we funded a Bancor pool using treasury funds due to the IL protection.
The 7 day cooldown serves no purpose now that ILP is disabled. Removing the cooldown is better for all stakeholders in Bancor as existing LPs who don’t want to withdraw, benefit from more withdrawals as the protocol’s ILP liabilities are reduced.
I do not have a strong opinion on the 0.25% fee. I believe if this is contentious, and I think it may be, it’s better to make this proposal without the withdrawal fee component, to de-risk the chances that this gets rejected.
Proposal has my support for the reasons stated by @foxsteven.