This proposal is expected to appear on Snapshot for voting on Monday 19, April 2021 at 12:00 pm UTC.
TL;DR
- Proposal to activate liquidity mining on MPH
- Proposal to coinvest on the MPH pool 350,000 BNT
Justification
Our first proposal on Bancor to whitelist MPH received unanimous support from vBNT holders in our respective communities that helped us reach the required quorum in a short period of time.
This was truly heartwarming and we decided to airdrop a special “Thank you” NFT to the 123 Bancorians who voted for it.
In our opinion, what we witnessed during the whitelisting proposal vote is illustrating a strong synergy between our communities to create additional value in both ecosystems.
From one side, you have MPH HODLers with a fervent desire to stake more MPH and BNT in order to create the single deepest source of MPH liquidity in the DeFi space.
On the other side, there is the Bancor community who incentivizes key pools for strategic reasons with co-investments and LM rewards, while making sure the whole point is not just farming-and-dumping BNT rewards and creating useless inflationary emissions.
This and all the recent events around our whitelisting have two, equally important impacts on Bancor Network:
- TVL growth. A 350k coinvestment in association with a liquidity mining rewards would create a significant incentive to migrate in a short period of time the whole Uniswap liquidity ($6m) to the current MPH pool on Bancor ($400k). Roughly, this coinvestment will support $2.5m in MPH single-sided availability, totalizing a $5m depth. With the addition of the LM rewards, more single-sided exposure opens up with the BNT re-staked, and the MPH Bancor pool will definitely become larger than the Uniswap one.
- Price Support. While the 88mph and Bancor communities become thoroughly intertwined, the core supporters of Bancor and 88mph will make sure that the BNT rewards remain off the open market, and inside the Bancor Network, guaranteeing that BNT token price is not affected in any way. According to the recent data, the core-behavior of the LPs is to restake 80% of the rewards. There is no reason this should be different with the 88mph community looking for a capital-efficient solution.
- Sustainable revenues: growing the depth of the pool will further strengthen its attractiveness and encourage an equal or larger amount of volume, and by consequence a sustainable stream of income for the LPs, while enjoying IL protection. A great way to keep them incentivized in the long term even if the LM rewards dry out at some point.
Thanks for reading.
Disclaimer: I’m the cofounder of 88mph and I own some $MPH.
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