This proposal is due to appear on Snapshot on 3rd May, 12:00 pm UTC. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
- This Proposal seeks to increase the Co-Investment Limit on the EWT Pool to 250k BNT. Making us the largest DEX pool.
- It will open up space on the TKN side (EWT) and potentially lead to an increase in the depth of the pool as LPs add liquidity.
- A larger EWT pool will attract more trades from aggregators and professional market makers to Bancor which will provide more fees to the platform.
There is currently 450K~ USD In the EWT Liquidity Pool on Bancor, with the pool accruing double digit APRs regularly. As of right now there is no space left in the EWT Pool with 50k~ BNT needed to open up any more space. This proposal is intended to increase the co-investment on said pool to 250k BNT, offering enough room for roughly 1.5M USD worth of space at a 6$ BNT.
The current pool of EWT has grown to a large depth organically without the use of LM Rewards and there are not too many options for EWT holders to utilize their capital. The Pool on Bancor has also clearly attracted EWT holders naturally and I think their overall attitude towards their token is that of long term holders which makes it a good fit.
As we can see by the Pool in UNI the Liquidity to Volume Ratios are incredibly lucrative and consistent. If we want to take a bigger market share of EWT Fees it would make sense for us to want to have the deepest pool. A 250k BNT Co-Investment would allow us to at first match and then eventually overtake the liquidity on Uniswap.
Current CEX Pools.
- A larger co-investment limit on the pool will let LPs provided single sided liquidity and will lead to an increase in pool depth.
- More liquidity in the EWT-BNT pool should lead to larger volume from DEX aggregators and professional market makers sent in our direction
- More volume for Bancor leads to more fees for our platform and BNT holders
- We should not increase the limit on the pool
- We do not need extra liquidity in our platform to support larger trades
- We do not need to generate fees for our platform or BNT holders