# Proposal: Extend LM rewards on MKR/BNT pool **URL:** \ **Category:** DAO Archive (SUBMITTED)\ **Created:** [June 21, 2021, 3:05pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457 "2021-06-21T15:05:35Z")\ **Posts on this page:** 12\ **Page:** 1
**Author:** ![Conw](https://avatars.discourse-cdn.com/v4/letter/c/f04885/32.png) [@Conw](https://gov.bancor.network/u/Conw)\ **Post date:** [June 21, 2021, 3:05pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/1 "2021-06-21T15:05:35Z")
# Proposal to extend LM rewards on MKR/BNT pool ## This proposal is expected to appear on Snapshot for voting on 2021-06-28T12:00:00Z # TL;DR - Extend LM rewards for 8 weeks # Justification Worth trying to gain swap transactions. Currently we are not competitive ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [June 21, 2021, 3:16pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/2 "2021-06-21T15:16:58Z")
The fee reduction proposal is a here: > [@Proposal: Lower MKR-BNT Fees to 0.1%](https://gov.bancor.network/t/proposal-lower-mkr-bnt-fees-to-0-1/2438): > > This proposal is expected to appear on Snapshot for voting on 2021-06-21T12:00:00Z (UTC) Coming from this thread. Making the fees competitive is a good idea as we are essentially pricing our selves out at the moment. We are not the pool with the highest liquidity and hence don’t have much market power. [image] The above doesn’t count Uniswap V3 which has 15M in liquidity on the MKR-ETH pair: Compare to us at ~23M: [image] The fees for these pools are set between .16%-.3% at the… and already live on [snapshot](https://snapshot.org/#/bancornetwork.eth/proposal/QmekgzP1G3DSarj2XzfmKyJQfhKkiFnEFUSSfk3kqHPyFG). Also, why didn’t you modify the original proposal?: > [@Proposal to extend LM rewards in MKR/BNT Pool](https://gov.bancor.network/t/proposal-to-extend-lm-rewards-in-mkr-bnt-pool/2430): > > Proposal to Extend LM Rewards on MKR /BNT pool TL;DR As of now Pool has $23M, and is in our top 10 in terms of total value. Fees generated from swaps are still low as of now so likely will lose most of the MKR participants when LM ceases Current APR is the highest pool for BNT holders at the moment as a %, so it’s a good pool for us BNT supporters propose extending LM rewards in current state for another 12 weeks Thoughts? ---
**Author:** ![mbr](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/mbr/32/3021_2.png) [@mbr](https://gov.bancor.network/u/mbr)\ **Post date:** [June 21, 2021, 4:02pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/3 "2021-06-21T16:02:40Z")
The proposal to reduce the fee is already being voted on. ---
**Author:** ![tenzent](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/tenzent/32/1821_2.png) [@tenzent](https://gov.bancor.network/u/tenzent)\ **Post date:** [June 21, 2021, 8:07pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/4 "2021-06-21T20:07:56Z")
I would reccomend giving the pool a minute to see how the fee change affects volume. As the pool is right now there’s no way it’s getting LM Extended but that might change should the fee change have a major impact on the volume it attracts and total fees it ends up generating. ---
**Author:** ![satoshi](https://avatars.discourse-cdn.com/v4/letter/s/838e76/32.png) [@satoshi](https://gov.bancor.network/u/satoshi)\ **Post date:** [June 26, 2021, 2:53am UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/5 "2021-06-26T02:53:09Z")
What would you say the min fees required daily to give that pool LM rewards? ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [June 26, 2021, 4:12am UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/6 "2021-06-26T04:12:26Z")
Hard to say but you can look at the following fees data to get a sense of where this currently falls. | symbol | total\_fees | | --- | --- | | UNI | $36,857.58 | | REN | $38,760.98 | | GRT | $40,577.67 | | OCEAN | $41,921.99 | | BAT | $69,365.76 | | ROOK | $69,489.97 | | ALPHA | $75,214.49 | | AAVE | $82,909.86 | | MKR | $85,265.39 | | YFI | $85,476.96 | | SNX | $88,976.32 | | wNXM | $125,454.00 | | WOO | $152,837.64 | | ENJ | $329,335.85 | | MATIC | $507,499.86 | These are the total fees collected since the week of 5/24 so roughly ~33 days worth. Note that roughly 1/3 of the fees were collected the first two days: ![image](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/d/d5b751186deb48e770000014bdbd78731cb9b500.png) When I proposed the [LM campaign](https://gov.bancor.network/t/proposal-lm-rewards-for-maker-mkr/1638) on this pool it was to get awareness for the Bancor BNT token onboarding process on MakerDAO that was happening at that time. The liquidity on this pool was anemic back then (roughly ~1M if I remember correctly) but I think we are competitive with other DEXes at the moment which is good for us. ---
**Author:** ![ccc](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/ccc/32/3214_2.png) [@ccc](https://gov.bancor.network/u/ccc)\ **Post date:** [June 26, 2021, 2:23pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/7 "2021-06-26T14:23:38Z")
I’m not sure where this proposal is at or what purpose it currently serves. What’s going on, guys? ---
**Author:** ![tenzent](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/tenzent/32/1821_2.png) [@tenzent](https://gov.bancor.network/u/tenzent)\ **Post date:** [June 26, 2021, 4:14pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/8 "2021-06-26T16:14:28Z")
Will be going up for voting this week ---
**Author:** ![ccc](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/ccc/32/3214_2.png) [@ccc](https://gov.bancor.network/u/ccc)\ **Post date:** [June 26, 2021, 4:27pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/9 "2021-06-26T16:27:11Z")
Right, but the fee was already lowered; are we just voting on the LM reward extension now? Because if that’s the case, I would support that; we have less MKR in our pool (at time of writing we have roughly 4,200 MKR) than [Uniswap has in their MKR/ETH pool](https://info.uniswap.org/#/pools/0xe8c6c9227491c0a8156a0106a0204d881bb7e531) (at time of writing, roughly 5,100), while we have _plenty_ of space for more liquidity. We have a slippage problem (only up to 30k BNT before 1%), and I suspect that may have something to do with the lack of volume. ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [June 26, 2021, 5:57pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/10 "2021-06-26T17:57:17Z")
I have fixed the tittle on this proposal to reflect that this is for LM rewards since the fees on the pool were reduced. There is a lot of MKR liquidity that is evenly distributed across all DEXes (Uniswap, Sushiswap, Balancer) and that makes it very competitive. Some of the trading on this pair also appears to be down if you look at the volume on other DEXes from previous month. Also note that the [Uniswap V2](https://v2.info.uniswap.org/pair/0xc2adda861f89bbb333c90c492cb837741916a225) pool is a lot bigger than the V3 pool (from your link). ---
**Author:** ![ccc](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/ccc/32/3214_2.png) [@ccc](https://gov.bancor.network/u/ccc)\ **Post date:** [June 27, 2021, 12:03am UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/11 "2021-06-27T00:03:19Z")
Ah, I hadn’t noticed; I don’t know much about Uniswap other than it’s a common comparison. At the time of this post, the Uniswap V2 pool at roughly 6,600 MKR. Combined with the V3 pool for a total of 11,700 MKR vs our 4,200, _ **it would appear that we are sorely lacking in depth** _. ---
**Author:** ![tenzent](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/tenzent/32/1821_2.png) [@tenzent](https://gov.bancor.network/u/tenzent)\ **Post date:** [June 28, 2021, 6:17pm UTC](https://gov.bancor.network/t/proposal-extend-lm-rewards-on-mkr-bnt-pool/2457/12 "2021-06-28T18:17:37Z")