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.
- 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 LINK is due to end in less than 2 weeks.
- To maintain LINK liquidity until the launch of Bancor 3, this proposal seeks to extend the LM rewards program on the LINK pool for a further 8 weeks or until Bancor 3 is released.
- LINK would continue to receive emissions of 100-200k BNT per week, for an additional 8 weeks or until Bancor 3 is launched.
- LINK is the 3rd deepest pool on Bancor, representing roughly 81% of staked LINK on Ethereum and 20% of Bancor v2.1’s TVL.
- Sustaining liquidity in the LINK pool is essential to maintain the position of the Bancor protocol on the market.
- The LINK pool brings a significant share of the volume of the ecosystem, and also presents reasonable impermanent loss liability.
- LINK pool’s weekly volume and fees, as well as liquidity share, are shown below in Figures 1, 2 and 3.
Figure 1 - Weekly LINK fees, since the beginning of July.
Figure 2 - Weekly LINK volume, since the beginning of July.
Figure 3 - Staked LINK Liquidity Share on Ethereum.
- At this stage, current protocol growth requires LM to maintain the liquidity on Bancor v2.1 ahead of Bancor 3 launch.
- After the Bancor 3 release, the LM rewards in the LINK pool will end until the DAO votes on a proposal to activate them again.
- 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.
- Extension of LM rewards on LINK for 8 weeks will provide 800,000 - 1,600,000 BNT as rewards, depending on the multiplier.
Continue LM rewards on the LINK pool, at 100-200k BNT/week, until the launch of Bancor 3.
Do not extend the LM rewards in the LINK pool.