This proposal is expected to appear on Snapshot for voting on 2021-08-15T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
Proposal to Extend LM rewards for WOO
TL DR
The LM Rewards will be extended on the WOO Pool. The pool has enjoyed close to 100 days of BNT LM rewards.
The current reward rates for the pool will be unaffected.
The LM rewards duration on the WOO pool can be ended prior to the completion of the extension if the DAO votes to do so.
The LM rewards rate on the WOO pool can be modified prior to the completion of the extension if the DAO votes to do so.
Pool depth and volume vs other exchanges and Bancor
The WOO/BNT pool on Bancor and the WOO/BNB pool on PancakeSwap have the highest liquidity in any DEX (Figure 1).
Compared to other tokens that have an ongoing or had an LM campaign, the total fees for different time periods show that the WOO/BNT pool has been a consistent top performer:
After discussion with the Wootrade team, @BenYorke has replied with the following:
Team can publicly commit to adding WOO LM rewards, moving them from Uniswap v2 to Bancor
We can also suggest that we will explore including Bancor in our on-chain trading strategies, bringing more volume there. Both these are somewhat dependent on v3.
BNT is listed on our network and we will be connecting to more institutions and exchanges, bringing BNT liquidity support to them.
Justification
The pool has one of the deepest liquidity in any CEX/DEX. Keeping the LM rewards active will help maintain its liquidity ahead of v3.
The WOO/BNT pool has consistently been a top performer when taking into account the last 30, 60 and 90 days of volume.
The synergy between Bancor and Wootrade cannot be overlooked and an extension of the LM rewards alongside the Wootrade team’s promises to bring WOO LM rewards and explore other ways of adding value to Bancor would bring this partnership one step further.
Utilising BNT LM rewards as a tool to build/incentivise mutually beneficial relationships with other projects is arguably one of the best use cases for it, as can be seen from the Harvest Finance buyback mechanism migration success [1].
FOR
Extend LM rewards on the WOO/BNT pool.
AGAINST
Do NOT extend LM rewards on the WOO/BNT pool.
Hi BancorDAO,
Ben here from Wootrade. Just want to reiterate that the team supports this and can move the WOO rewards from our current Uniswap pool (About 50,000 WOO per month) to be one of the first to give dual rewards. We have a ton of community overlap and a lot of our users are becoming acquainted with DeFi through Bancor. This is the largest WOO pool (about twice the size of Uniswap) not to mention all the benefits of single-sided staking. We’d love to keep this momentum going strong!
Very happy to see the WOO team active in Bancor and vocally supporting it with the shift of staking rewards. Hugely supportive of both $BNT and $WOO. When I saw the Chainlink Keeper proposal where $LINK can be dual-staked, I immediately thought of $WOO. Large holder and staker of both. The volumes on pool are a solid performer and with the dual-staking, there will be even more incentive for holders to leverage Bancor’s unique single-staking no-IL solution. As Mark Richardson said, true capital efficiency.
I will vote for this under the condition there is a reduction to emissions. I look forward to the WOO team moving rewards over but I don’t see a clear timeline for this unless there is something I missed.
for reducing I would say tone it down to about 75% of current rewards (7,500BNT / Week), that would even out the Native and Inflationary APRs, right now the BNT Rewards tend to be a bit greater than the Native Fees generated if we can equal this out I’m fine with it.
The WOO/BNT pool is highly performant and the Wootrade community has strongly supported Bancor. Per Ben’s comment about including Bancor in Wootrade’s on-chain trading strategies to drive more trading volume to Bancor, it makes sense to prioritize Wootrade and their community given the multiple paths for mutual gain.
I will vote FOR to extend LM rewards on the WOO/BNT pool.
