Proposal: Co-investment limit Increase on ETH

Co-investment Limit Increase on ETH

This proposal is expected to appear on Snapshot for voting on 2021-06-28T12:00:00Z


  • Create extra space for ETH deposits.
  • Enable a limit change from 30 million BNT, up to 50 million BNT minting limits on ETHBNT pool
  • The limit can only be increased by 2M BMI, only if there is no space to stake ETH
  • There has to be at least 5 days break between each limit increase

Vote “for” to enable this change, or vote “against” not to enable it.


With the acceptance of BIP5 by Governance and the recent contract upgrade, the DAO can now set hard limits for BNT co-investments by the protocol on a per-pool basis.

This proposal seeks to exercise this new feature by significantly increasing the co-investment limits on ETH from 30,000,000 BNT, to a maximum of 50,000,000 BNT.

The co-investment will be increased gradually with 2M BNT tranches. Effect on the network of the underlying limits increase will be tightly monitored.

The anticipated positive effects are:

  1. An immediate increase in TVL.

Increased co-investment limits allow for additional single-sided token staking by both ETH holders. ETH pool currently has a limited capacity to attract ETH in big chunks. We witnessed a higher than usual demand and requested from big market players to stake ETH with Bancor.

  1. An increase in the Bancor Vortex burn rate.

The ETH pool proved a minimal insurance liability during the initial phase of V2.1. Trade revenue on ETH pool is one of the main contributors to Bancor Vortex burning protocol. Increasing the co-investment limit will increase trading volume and Bancor Vortex burns activity.

  1. Passive staking of ETH.

More and more ETH of big players is looking for a safe harbor to part their ETH for an upcoming bear market. Bancor, so far Bancor is one of the safest places with attractive ETH denominated yield. There are other places such as Lido, but this lock ETH until the 2.0 release. Therefore we have seen increased demand for ETH staking


ETH pool is one of the most important pools on BNT. It has been proven a low IL liability with high upside for the network, not only because of accommodating a lion share of TVL but also because of producing relevant revenue and causing significant Bancor Vortex Burn.
The careful limit increase will allow luring capital from big and long term players on the market that will support not only protocol TVL but likely to back Bancor on the media.


This is a CLEAR YES from me

Just to be clear, we’re not talking about increasing the co-investment itself, only how high we can set it? I’m not sure what BIP5 is, I’m having trouble finding it. Is there an archive of BIPs somewhere that I’m missing?

1 Like

Thanks, Michael. Proposal has my support since our it appears that our IL liability is minimal.

We can capitalize on this Proposal: Whitelist Lido's wrapped staked eth (wstETH) Plus 350K BNT Co-Investment Limit there has been large amounts of ETH being parked on Lido and I suspect this will increase going forward.

Increasing the liquidity here should help us capture any ETH-wstETH trades for people that want swap to interest bearing ETH and vice versa. We will see what the appetite is for this pool if the DAO chooses to whitelist.


Really like this prop will vote, also seems like theres a bit of ALPHA written in there, but I could be imagining it. In the future we could maybe look to open up space in some other mega caps.

1 Like

I support this proposal. Could you also discuss (either as part of this proposal, or another) whether the 0.15% swap fee on the ETH pool is worth keeping or lowering back to 0.1%. It has been running for around 2 months and there should be a fair bit of data by now if it is working.


BIP5 let the pool get to a max of 30 mil BNT co investment.

This will allow it to get to 50 mil if the pool has no space in increments of 2MIL

I can’t vote on this one. I’m not confident that I have the necessary data to make an informed decision, since this one references documents that I haven’t been able to find.

1 Like

Wow, i also suddenly cannot find it. odd