Proposal: Extend LM Rewards on WOO Pool

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

  1. The LM Rewards will be extended on the WOO Pool. The pool has enjoyed close to 100 days of BNT LM rewards.
  2. The current reward rates for the pool will be unaffected.
  3. 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.
  4. 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).


Figure 1 - WOO markets (taken from Wootrade Network price, WOO chart, market cap, and info | CoinGecko)

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:

~90 Days ago (since the week of 5/10):

symbol total_fees
MATIC $1294551.31
ENJ $677034.03
wNXM $395338.39
SNX $335653.10
ALPHA $281490.65
YFI $278519.70
AAVE $265097.13
WOO $259858.44
MKR $235950.65
ROOK $196656.61
BAT $133974.06
GRT $92901.80
UNI $90690.41
OCEAN $89984.20
REN $74395.38
MPH $34038.82

~60 Days ago (since the week of 6/7):

symbol total_fees
ENJ $395003.40
MATIC $257209.13
WOO $213601.72
SNX $167911.21
ALPHA $117988.93
wNXM $114426.41
ROOK $112195.55
AAVE $94008.27
BAT $81431.75
OCEAN $54197.10
MKR $48255.73
GRT $44936.27
YFI $42744.86
REN $31616.74
UNI $21866.38
MPH $16499.87

~30 Days ago (since the week of 7/12):

symbol total_fees
ENJ $153636.043
MATIC $67828.43
SNX $63558.83
WOO $54212.29
ALPHA $48216.45
wNXM $44557.74
ROOK $42532.47
BAT $32948.35
AAVE $28758.60
OCEAN $19842.99
MKR $17277.90
GRT $12406.04
YFI $11897.43
REN $11043.89
MPH $8397.70
UNI $6742.48


Figure 2 - WOO daily volume on Bancor.

Added value of extending LM rewards

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

  1. 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.
  2. The WOO/BNT pool has consistently been a top performer when taking into account the last 30, 60 and 90 days of volume.
  3. 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.
  4. 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.

[1] Proposal : Targeted LM Campaign for FARM to capture Buyback Mechanism

8 Likes

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!

I personally will be voting FOR.

10 Likes

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.

5 Likes

Ben - glad to see the WOO team active in DAO governance! Will WOO stakers on Bancor also be eligible for future airdrops when the time comes?

4 Likes

We love Mark

2 Likes

That’s a decision for the WOO Ventures team but as I understand it will be difficult to implement on-chain, unfortunately

2 Likes

How much WOO will you guys commit to?

Your pool receives about 20,000 BNT per week.

2 Likes

The rewards pool is currently 50,000 WOO per month

3 Likes

Based on 12,500/week - at 81 cents a token is $10,000 per week

Your pool is getting in BNT 20,000 per week (assuming full multiplier) - so at $4.2 that $84,000 per week.

Please don’t misunderstand (I hold WOO and BNT) - but I do think these numbers should be a little closer together.

I’m open to lowering the BNT rewards if your budget is set already.

1 Like

reads like a turkish bazar. any double farming is better than none

4 Likes

Thanks for the thoughts eldude! Good to see another WOO & BNT holder.

I don’t necessarily agree that the numbers need to change, here are some counterpoints as to why:

  • APR is split roughly 70% for BNT and 10% for WOO
  • WOO market cap is much smaller, supply inflation impacts more severely
  • WOO token supply is fixed, these rewards are from the treasury, not minted
  • WOO Network can bring value in more ways than just rewards
2 Likes

The rewards split is typically 70% on the BNT side and 30% on the TKN side. Just wanted to throw that out there.

Also adding some data that didn’t make into the initial post. The weekly volume and fees data since the week of 5/10:

symbol time Conversion Fees in USD Volume in USD
WOO 5/10/2021 0:00 $2,329.59 $1,162,464.13
WOO 5/17/2021 0:00 $10,690.69 $5,334,652.93
WOO 5/24/2021 0:00 $9,312.55 $4,646,960.74
WOO 5/31/2021 0:00 $23,899.73 $11,925,967.35
WOO 6/7/2021 0:00 $57,966.97 $28,925,517.77
WOO 6/14/2021 0:00 $30,770.96 $15,354,710.33
WOO 6/21/2021 0:00 $39,146.90 $19,534,303.17
WOO 6/28/2021 0:00 $21,040.05 $10,498,984.48
WOO 7/5/2021 0:00 $9,910.20 $4,945,189.46
WOO 7/12/2021 0:00 $13,732.59 $6,852,563.36
WOO 7/19/2021 0:00 $14,317.97 $7,144,664.65
WOO 7/26/2021 0:00 $11,356.98 $5,667,131.93
WOO 8/2/2021 0:00 $12,753.18 $6,363,837.96
WOO 8/9/2021 0:00 $9,358.22 $4,669,750.98
3 Likes

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.

2 Likes

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.

5 Likes

I second this post. I believe this vote is more about future interactions between the Bancor and Woo communities.

4 Likes

Can the WOO community help us get listed here?:

See Wootrade Network

2 Likes

Yeah, that page is being redesigned, will include Bancor for sure

3 Likes