This proposal is expected to appear on Snapshot for voting on 2021-08-22T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
The majority of our liquidity is hosted on Bancor
We are eager to provide ZCN, for 0Chain LM rewards, once supported by Bancor v3.
We are working on a 0Chain wallet and we will use Bancor Liquidity Pools for swaps.
Justification & Discussion
1 - Since the first proposal to whitelist ZCN with a 20k Co-Investment limit, to the 2nd proposal to increase the Co-Investment by 350k with LM rewards, the 0Chain community has seen its liquidity grow exponentially. Over the past few months, the relationship has strengthened, which has translated to a huge increase in the ZCN/BNT pool size (see above). This migration of 0Chainers from Uniswap to the Bancor pool has allowed ample space for Bancor to absorb majority of the total DEX liquidity, while maintaining a substantive incentive for ZCN LPs to buy and stake BNT. The response from BNT LPs has been tremendously warm and rewards have been equally profitable for both communities. Not to mention the amount of BNT that has been taken out of circulation, the impact will be directed on BNT price, ensuring the DAO that ZCN is not inflationary.
2 - With liquidity sitting at a remarkable ~$9,000,000, and current mining reward scheduled to end in 6 days, the extension of the liquidity mining program will maintain liquidity in the short term, while also supporting Bancor as it prepares migrations to v3. 0Chain would be delighted to support liquidity mining on v3 as well with 0Chain LM rewards, and certainly both communities will be welcoming it.
3 - Not only did we see Bancor network become ZCN’s go-to decentralized exchange and liquidity resource, but we will also see an exciting collaboration of our technologies. With 0Chain’s distributed Cloud storage solution and Bancor’s innovative liquidity solution, together will bring forth new & important innovations into the world. In this manner, 0Chain is working on a wallet build that will use Bancor Liquidity Pools for Swaps. This will be done directly without contracts, with our SDK, or via API.
With firm belief, the extension of the LMR program on ZCN/BNT will continue to provide us with constant liquidity, as part of the long-term support for our project, and a friendly environment for Bancor LPs. BNT has become an integral part of 0Chain, and together the communities have formed new and lasting synergies, we would like to go deeper into the vortex, and continue to expand at warpspeed. The value proposition of BNT is clear!