Proposal: Extend LM Rewards for BNT-ENJ pool

DAO Archive (SUBMITTED)
1

This proposal is expected to appear on Snapshot for voting on Monday May 24th

2021-05-24T15:00:00Z

This proposal relates to extending the LM rewards for Enjin (ENJ) for an additional 12 weeks.

Enjin coin is a key tool for the management of virtual goods; used as a stored reserve value being locked up when items are created and released when they are destroyed.

Enjin has brought c. $70m of liquidity to Bancor and consistently had one of the highest daily fees by token (up to $100k per day) and strong volume (up to $20m per day) underpinned by a 0.50% swap fee. The LM rewards mechanism clearly attracts ENJ liquidity providers while providing a high amount of liquidity for traders.
The extension of this pool will ensure that Bancor continues to attract a diverse range of liquidity providers and traders alike. Thank you for considering this request for extension.

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Just appending here to give some data to the community. The BNT-ENJ pool has roughly $52M in liquidity and we are by far the largest as compared to other DEXes (not much on sushiswap/balancer):

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We are about seven times larger than the next biggest pool which is on Uniswap. The ENJ liquidity in this pool has been roughly the same since the week of 3/8:

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image1339Ă—474 19.2 KB

which means that the pool size in terms of ENJ tokens hasn’t changed much. The fees collected by this pool peaked a few weeks back and have since tapered:

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image1341Ă—523 23.4 KB

which matches with the volume decrementing:

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image1342Ă—527 21.1 KB

With that said, here is the total fees collected since the week of 2/15 for the different tokens that have come up for renewal since then:

symbol sum
GRT $181,760.84
REN $251,521.16
AAVE $332,835.42
SNX $344,110.55
YFI $394,028.74
wNXM $757,702.68
MATIC $935,885.24
ENJ $1,488,746.75

Note that these results are subject to change since the week of 5/10 hasn’t concluded yet.

I saw the following blog post from Enjin last year:

Are there other ways that we can continue to build the relationships between our communities?

full data below:

symbol time Conversion Fees in USD Volume in USD
ENJ 2/15/2021 0:00 $5,087.14 $1,012,341.70
ENJ 2/22/2021 0:00 $9,857.93 $1,961,727.15
ENJ 3/1/2021 0:00 $39,873.44 $7,934,813.80
ENJ 3/8/2021 0:00 $222,362.29 $44,250,096.25
ENJ 3/15/2021 0:00 $218,151.56 $43,412,160.94
ENJ 3/22/2021 0:00 $116,336.44 $23,150,952.43
ENJ 3/29/2021 0:00 $55,996.33 $11,143,269.81
ENJ 4/5/2021 0:00 $377,913.62 $75,204,810.36
ENJ 4/12/2021 0:00 $117,257.80 $23,334,301.76
ENJ 4/19/2021 0:00 $142,241.14 $28,305,987.57
ENJ 4/26/2021 0:00 $100,799.23 $20,059,045.84
ENJ 5/3/2021 0:00 $57,842.76 $11,510,710.02
ENJ 5/10/2021 0:00 $24,825.75 $4,940,324.32

Note that the week of 5/10 hasn’t completed yet and hence the total fees might still increment in the next few days.

4 Likes
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ENJ is one of the strongest pools. the write up by glenn is quite good about showing that, will support.

5 Likes
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I’ve been an LP in this pool for awhile. Full disclosure. That said, Bancor is attracting Enjin holders and gamers. Bancor has by far the biggest market share compared to other DEXs. Let’s keep that first “go to” mindset in the Enjin community. Once gas costs go down (with ETH upgrades in a couple of months … ) LM incentives can decrease or be eliminated, but Enjin community will stay loyal and word will spread which will attract much more volume and higher fees.

3 Likes
5

ENJ have has a Bancor pool forever - im happy to support them

1 Like