I’m seeing the Sushi pool at ~$700 K, so Uni v2 is second and about 23% of the Bancor pool.
If you look at trade depth, then the 0.3% Univ3 pool is ~ equivalent to v2 pool.
Note, a 0.5% price impact trade in the BNT pool would be ~$27,000 so we have double the depth of all the other DEX pools combined and x4 any single pool.
My understanding is that
- $6,600 trade on Uni v2 would have 0.3% fee and 0.5% price impact (/ slippage ??? ) = 0.8% cost.
- $6,600 trade on Bancor would have 0.2% fee and 0.15% price impact = 0.35% cost (so Bancor is superior for single hop trades)
- $6,600 trade with new fee would cost 0.5% %+ 0.12% price impact (0.62% total and still superior)
At larger trade sizes the price impact becomes a bigger effect than the fee.
- $13,200 on Uni would cost 0.3% + 1% = 1.3%
- $13,200 on Bancor would cost 0.2% + 0.25% = 0.45% (current Bancor)
Obviously, this ignores the gas costs and more likely occurrence of two hops on Bancor.
As trades get smaller, the lower (0.3%) fees get more attractive than the 0.5% fee and so counters our greater depth. I think this would break even at ~$3 K.
Note, This post isn’t a vote against the proposal. I think it’s good to be experimenting, and my understanding of liquidity makes me think that Bacnor will continue to capture the majority of DEX volume. In addition, the 2.5% fees is very tasty.