Proposal: Extend LM rewards on 0Chain (ZCN/BNT)

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.

  1. The majority of our liquidity is hosted on Bancor

  2. We are eager to provide ZCN, for 0Chain LM rewards, once supported by Bancor v3.

  3. 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!


the thing with this pool is it doesnt create any volume. with current sediment i see no chance for it to get extended

1 Like

I hope the liquidity remains to accommodate volume uptick as the project transition through the mainnet phase.


I support an extension of the LM rewards for this pool. It makes sense to provide LM rewards in conjunction with the 0chain mainnet launch. After having conducted thorough research on 0chain, it is reasonable to assume after 4 years of development that this mainnet launch will attract considerable attention to the project. It is not unreasonable to assume that 0chain could become one of, it not THE, top decentralized storage protocol. As a BNT holder, I believe it is in best interest of our community to be the pre-eminent liquidity provider for 0chain upon their mainnet launch.

-Johnny Crypto


Some stats below:

We are by far the DEX with the most liquidity for this token:


Essentially, there is no competition anywhere else:


The current weekly fees and volume for this token since the week of 5/17:

Compared to other tokens that have an ongoing or had an LM campaign, the total fees for different time periods:

~90 Days ago (since the week of 5/17):

symbol total_fees
ZCN $13,060.51
NDX $21,900.25
MPH $29,715.22
REN $66,020.99
UNI $71,865.52
OCEAN $87,033.17
GRT $89,589.49
BAT $132,062.42
ROOK $190,810.62
YFI $195,565.20
MKR $196,857.14
AAVE $222,521.77
ALPHA $228,964.17
WOO $269,816.88
SNX $293,324.27
wNXM $303,785.95
ENJ $672,342.71
MATIC $1,064,582.94

~60 Days ago (since the week of 6/14):

symbol total_fees
NDX $8,263.33
ZCN $9,199.62
MPH $15,060.67
UNI $18,798.14
REN $28,181.26
YFI $41,986.28
MKR $43,292.67
GRT $46,888.60
OCEAN $50,982.66
BAT $74,202.60
AAVE $90,374.06
wNXM $109,093.64
ROOK $117,773.10
ALPHA $118,155.76
SNX $158,966.72
WOO $167,946.95
MATIC $227,041.22
ENJ $375,759.61

~30 Days ago (since the week of 7/19):

symbol total_fees
ZCN $4,424.97
NDX $4,610.69
UNI $6,439.08
MPH $10,024.08
REN $11,766.30
YFI $16,659.02
MKR $17,350.26
GRT $18,670.76
BAT $23,436.30
OCEAN $24,292.22
AAVE $29,395.16
ALPHA $44,968.99
WOO $53,346.24
ROOK $56,685.52
wNXM $64,915.34
SNX $66,527.35
MATIC $83,487.10
ENJ $142,832.85

Volume and Fee data since the week of 5/17/21:

symbol time Conversion Fees in USD Volume in USD
ZCN 5/17/2021 0:00 $1,746.83 $871,669.65
ZCN 5/24/2021 0:00 $866.73 $432,496.01
ZCN 5/31/2021 0:00 $557.10 $277,990.50
ZCN 6/7/2021 0:00 $690.24 $344,428.41
ZCN 6/14/2021 0:00 $1,030.74 $514,341.01
ZCN 6/21/2021 0:00 $1,798.61 $897,507.44
ZCN 6/28/2021 0:00 $502.69 $250,842.28
ZCN 7/5/2021 0:00 $662.23 $330,453.94
ZCN 7/12/2021 0:00 $780.36 $389,401.84
ZCN 7/19/2021 0:00 $924.79 $461,470.11
ZCN 7/26/2021 0:00 $680.21 $339,422.61
ZCN 8/2/2021 0:00 $1,093.73 $545,771.17
ZCN 8/9/2021 0:00 $1,316.18 $656,773.10
ZCN 8/16/2021 0:00 $410.07 $204,624.47
1 Like

My input on this proposal, at a minimum we emitted 120K BNT in the 12 week time (10K-20K per week) span or 240K assuming that everyone stayed in for the full campaign and got 2x rewards. 30% of these rewards went towards the TKN side (ZCN).

The range in rewards quantity for the TKN side is about 36K-72K BNT or roughly $144K-$288K assuming BNT price of $4.00. Given the fee data for this pool, I don’t think another campaign is warranted but I do greatly appreciate the ZCN community reciprocating back to the Bancor community with the following potential collaborations:

  1. LM Campaign as part of V3
  2. 0chain wallet integration with out DEX

I think from our end, the Bancor community has shown that we would like to keep building ties with ZCN (given single sided staking with IL protection capabilities for ZCN, co-investment increases, and 12 weeks of LM rewards). Option #2 could also potentially lead to more volume in the future for ZCN-BNT and I think the community would be more receptive at that point in time for another LM campaign (depending on the volume). Thanks to the OP for bringing up this proposal.


Definitely supporting continuation of the collaboration BNT and ZCN. I sincerely hope and expect it to HIGHER growth of trading volume on bancor DEX as mainnet coming closer


Based on what i read above i feel like we should extend. They really seem to be going for Bancor. The volume now is lackluster but according to the telegram mainnet should (unironically) be nearby. As far as i can tell the tech is very solid and i feel like it’s a good match for Bancor!


As a holder of both BNT and ZCN, I think this stands to benefit both sides well. I know fees have been lackluster, but with mainnet being imminent I can’t see how that wouldn’t increase substantially. Also, the proposals to continue to build and collaborate with BNT are enticing.


I’m for extending it, I think it’s beneficial for both sides. When I think of getting ZCN, it’s Bancor. It’s actually what made me migrate to Bancor myself, so this likely applies to other ZCN holders as well.


I will vote “FOR”. The reason is that although the volume isn’t that great, I expect exponential demand for the token once Mainnet is out. Large enterprises that will use 0Chain will need the liquidity to trade, so I am in favor of supporting this pool!


@glenn If the LM were 6 weeks would you support? I’m also on the fence here.

It’s a lot of BNT. We are talking, if 12 weeks (is that the default?) - thats 240,000 BNT - well over a million USD.

But the wallet and ZCN rewards are good too.

I would for sure vote for this if it was for 6 weeks. 12 weeks I’m gonna need to think about.

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I am not sure how much ZCN rewards they are willing to incentivize the BNT-ZCN pool with (I don’t think that has been made clear) so it is hard for the DAO to judge how much rewards the pool will receive and for how long.

On the wallet side, as far as I can tell it is already out and available for download:

but there is no guidance as to timelines for when swaps will be integrated (I am assuming that’s dev work on the 0Chain side). I think the DAO has acted in good faith by providing a 12 week campaign to this token pair and I think it is fair for us to wait on another round of LM until swaps integration are in place which could potentially boost the volume in this pool (my opinion, others can vote at their sole discretion).

Note that using coingecko historical data for ZCN, the average volume the past 90 days has been $159,295.15 across all listed markets (including us). Assuming we capture all of that (we already capture a large majority since we have the most liquidity), then that’s roughly $320 in fees daily which is very minimal.

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My instinct is to stop LM on this pool for now.

If we have the majority of the volume, and LP’s have built up IL protection I don’t see many moving to a different pool. So, unless there are staking rewards (??) , why would a LP remove liquidity?

When v3 allows dual rewards we can look at restarting.

1 Like