# Proposal: Extension of Liquidity Mining Rewards on the ETH pool ahead of Bancor 3

**URL:** https://gov.bancor.network/t/proposal-extension-of-liquidity-mining-rewards-on-the-eth-pool-ahead-of-bancor-3/3508
**Category:** DAO Archive (SUBMITTED)
**Created:** [March 30, 2022, 3:07pm UTC](https://gov.bancor.network/t/proposal-extension-of-liquidity-mining-rewards-on-the-eth-pool-ahead-of-bancor-3/3508 "2022-03-30T15:07:09Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![tfns](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/tfns/32/465_2.png) [@tfns](https://gov.bancor.network/u/tfns)
#### Post date: [March 30, 2022, 3:07pm UTC](https://gov.bancor.network/t/proposal-extension-of-liquidity-mining-rewards-on-the-eth-pool-ahead-of-bancor-3/3508/1 "2022-03-30T15:07:10Z")

</div>

# Proposal: Extension of Liquidity Mining Rewards on the ETH pool ahead of Bancor 3

### This proposal is expected to appear on Snapshot for voting on 2022-04-02T23:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

# TL;DR

- This proposal is part of a series of proposals to extend LM in the wBTC, LINK, ETH, USDC, USDT and DAI pools.
- The LM rewards schedule for ETH is due to end in less than 2 weeks.
- To maintain ETH liquidity until the launch of Bancor 3, this proposal seeks to extend the LM rewards program on the ETH pool for a further 8 weeks or until Bancor 3 is released.
- ETH would continue to receive emissions of 100-200k BNT per week, for an additional 8 weeks or until Bancor 3 is launched.

# Discussion

1. ETH is the 2nd deepest pool on Bancor, representing roughly 23% of Bancor v2.1’s TVL.
2. Sustaining liquidity in the ETH pool is essential to maintain the position of the Bancor protocol on the market.
3. The ETH pool brings a significant share of the volume of the ecosystem, and also presents reasonable impermanent loss liability.
4. ETH pool’s weekly volume and fees are shown below in Figures 1 and 2.

 ![](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/0/05cab855cc733ecc40da2748d68195a942684f8d.png)  
Figure 1 - Weekly ETH fees, since the beginning of July.

 ![](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/5/588c98c04e4a18c76260cabc5003800822463cdd.png)  
Figure 2 - Weekly ETH volume, since the beginning of July.

# Summary

1. At this stage, current protocol growth requires LM to maintain the liquidity on Bancor v2.1 ahead of Bancor 3 launch.
2. After the Bancor 3 release, the LM rewards in the ETH pool will end until the DAO votes on a proposal to activate them again.
3. A large majority of the LM rewards are re-staked to the protocol, increasing the TVL and the space available for TKN deposits with single sided exposure.
4. Extension of LM rewards on ETH for 8 weeks will provide 800,000 - 1,600,000 BNT as rewards, depending on the multiplier.

FOR

Continue BNT LM rewards on the ETH pool, at 100-200k BNT/week, until the launch of Bancor 3.

AGAINST

Do not extend the BNT rewards in the ETH pool.