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Many users entered bancor with the promise of IL protection, now that IL protection is no longer active BIP21: DAO Multisig Intervention Policy , users should be able to choose if they want to accept the current haircut to withdraw without being held for another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liquidity is still active during the cool down period, this creates an unclear picture of what funds will be able to be withdrawn at the end of the period.