Proposal: Enable Deposits Exclusively On-chain

DAO Archive (SUBMITTED)
1

Proposal: Enable Deposits Exclusively On-chain

This proposal is expected to appear on Snapshot for voting on 2022-07-30T23:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

To pass, this needs 35% Quorum and 66.7% FOR votes.

TLDR

  • Deposits were disabled and a proposal to ratify the decision made was voted on here.
  • Liquidity is needed to improve protocol health, drive trade volume and benefit from new fee-generating features. Growing pool depth / onboarding new tokens can increase fees.
  • Enabling deposits comes with risks that may not be easy to understand for less experienced users.
  • DAOs and projects willing to deposit should have a way of doing so.
  • This proposal seeks to enable deposits exclusively on-chain under two assumptions:
    • Users that stake directly via the smart contracts are likely to be experienced DeFi users and understand the risks involved. To minimize this risk, the developer documentation shall be updated with disclaimers for any user seeking information on how to deposit.
    • There is no risk that third parties supporting staking on Bancor with no disclaimers in place would see deposits being enabled with the change herein proposed.

Discussion

  • Liquidity is the key to the protocol’s success and recovery and without deposits the protocol has no means of receiving new liquidity.
  • Allowing users to stake via the UI, even with disclaimers in place informing of the associated risks, may result in users staking in pools with an existing deficit without understanding what it means.
  • There have been multiple projects (CROWN, DBL, ACRE) that have applied for whitelisted status and been approved by the DAO but their pools are not yet live as a result of their inability to deposit.
  • Given continued interest from them and others, this proposal suggests we enable deposits on all pools exclusively on-chain, under the assumption that users who can send a transaction on-chain should be sophisticated enough to understand the risks associated with depositing.
  • A disclaimer will be added to Bancor’s dev docs if this proposal is approved.
  • There are no known third party front ends supporting staking directly on Bancor 3. The involved risk is that users of these platforms wouldn’t be informed of the involved risks with depositing their tokens.

Note: This proposal is specifically referring to the tokens that were disabled as a result of the ILP pause and does not refer to those that were disabled for other reasons.

Voting Instructions

FOR

Enable deposits on all pools (excluding those that are disabled for reasons other than the ILP pause) exclusively on-chain (not via the UI).

AGAINST

Take no action.

5 Likes
2

Thanks, looks good to me. :+1:

1 Like
3

I support this as well

4

looks good.
…and now i need to add few more characters :grinning:

1 Like
5

You could also enable on the website, but just have a sanity check before deposit of “I want to deposit [enter token ticker symbol], and I understand that ILP is disabled, and that I will assume the current deficit of this pool” - this would be a manual input field, instead of a checkmark. You could then have a checkmark with the deficit

1 Like
6

Totally on board with this. But would first like to see something implemented fast that doesn’t involve any development effort and allows some actors to stake.

This proposal can be considered a first step in this direction.

1 Like
7

This a smart move forward, that certainly looks to offer only upside considering all factors considered.

1 Like
8

I think this idea for the UI so that there is enough indication for any LPs that are looking to deposit. Essentially, we want to make them aware of any risks involved before moving forward.

2 Likes