Proposal: Extension of Liquidity Mining Rewards on the wBTC 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 wBTC is due to end in less than 2 weeks.
- To maintain wBTC liquidity until the launch of Bancor 3, this proposal seeks to extend the LM rewards program on the wBTC pool for a further 8 weeks or until Bancor 3 is released.
- wBTC would continue to receive emissions of 100-200k BNT per week, for an additional 8 weeks or until Bancor 3 is launched.
Discussion
- wBTC is the deepest pool on Bancor, representing roughly 29% of Bancor v2.1’s TVL.
- Sustaining liquidity in the wBTC pool is essential to maintain the position of the Bancor protocol on the market.
- The wBTC pool brings a significant share of the volume of the ecosystem, and also presents reasonable impermanent loss liability.
- wBTC pool’s weekly volume and fees are shown below in Figures 1 and 2.
Figure 1 - Weekly wBTC fees, since the beginning of July.
Figure 2 - Weekly wBTC volume, since the beginning of July.
Summary
- 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 wBTC 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 wBTC for 8 weeks will provide 800,000 - 1,600,000 BNT as rewards, depending on the multiplier.
FOR
Continue BNT LM rewards on the wBTC pool, at 100-200k BNT/week, until the launch of Bancor 3.
AGAINST
Do not extend the BNT rewards in the wBTC pool.