This proposal is expected to appear on Snapshot for voting on 2022-07-31T15:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
FOR: Enable deposits for CROWN and increase trading liquidity to 200k BNT
AGAINST: Do nothing
Enable deposits for the CROWN token
Increase the trading liquidity to 200k BNT
The Crown DAO understands the risks & would like to proceed
Trading liquidity can be grown via an external trigger as outlined in this proposal
The Crown DAO is eager to have a liquidity pool for CROWN tokens. While the current situation in Bancor is unfortunate, impermanent loss protection was never the main selling point for Crown - it was that single-sided liquidity frees up Crown’s treasury to fulfill its purpose: buying yield-generating gaming NFTs. As such, the DAO would like to enable deposits & begin bootstrapping the pool. Crown understands the risks associated with depositing into Bancor at the moment and would like to proceed.
Trading Liquidity Increase
When CROWN was originally whitelisted for 50k BNT trading liquidity, the price of BNT made the trading depth roughly ~$70k. Crown had originally planned to go through the whitelisting process, then attempt to increase the trading liquidity to around the $150k mark. With the current price of BNT, the 50k BNT trading depth would be around $25k, therefore Crown asks to increase the trading liquidity to 200k BNT. Note that there are already 256k CROWN tokens deposited in the External IL contract, as per our previous proposal, which can be seen in Etherscan.
We are glad to see Bancor is being pragmatic about things and as Lesigh stated our primary interest has always been that of single sided staking along with the ability for us to simply compound staking rewards for our holders without them having to do excessive transactions.
The insurance was always the cream and as it has been shown to clearly be more of a vulnerability than a benefit we strongly support Bancor taking a much more conservative stance going forward.
Liquidity pools need to be open we are ready to proceed and feel confident that the worst is behind us where Bancor is concerned!
I fully support it and would like to see a 1% fee structure on this pool as part of this proposal. We should also add a clause to this proposal that would let us grow the trading liquidity via the external trigger as well. See:
Once Bancor allows the bulk of the transaction fee to go to the stakers as it was before we can easily up the fee amount. But for the short term Bancor will be having most transaction fees going to Bancor in order to rebalance its books and so charging more to Crown members over the other pools would disincentivize them.