This proposal is expected to appear on Snapshot for voting on Monday May 24th
2021-05-24T15:00:00Z
Proposal to Extend LM Rewards on the Matic Pool for an additional 12 weeks.
The MATIC pool began receiving LM rewards when the marketcap was below $1B. It has now grown to over $8B. This tremendous growth has benefitted the Bancor platform with added liquidity and trading volume. Over 27 million MATIC has been added to the Bancor platform because of the LM rewards. Before LM rewards were in place, less than 1 million MATIC were staked. This pool has grown to $58 million in liquidity at time of writing.
MATIC has consistently had one of the highest trading volumes, with a max daily volume of over $50 million. Typical trading volumes are $10 million+ generating 20k+ fees daily.
Bancor’s growth as a top DEX will continue to benefit from the liquidity the MATIC stakers are providing, it is important we extend LM rewards for another 12 weeks to maintain the size of this pool.
Thank you for your consideration. Look forward to hearing feedback.
Just appending here to give some data to the community. The BNT-MATIC pool has roughly ~$64M in liquidity and we are the largest as compared to other DEXes (including quickswap):
which means that the pool size in terms of MATIC tokens has stabilized these past few weeks. The fees collected by this pool peaked on the week of 4/26:
The MATIC pool’s average volume/liquidity ration has been very high. The extra liquidity in the pool driven by the LM rewards is presumably driving these high trade volumes.
