Proposal: Increase Co-Investment Limit on WOO to 500k BNT

DAO Archive (SUBMITTED)
1

This proposal is due to appear on Snapshot on 10th May, 12:00 pm UTC. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TLDR;

  • The WOOBNT pool has been whitelisted recently.
  • Currently, the Wootrade community isn’t LPing on Bancor because the pool is full and needs 20k BNT to be staked to open up space.
  • Top DEX pools are WOO/USDC and WOO/WETH on Uniswap with a liquidity/volume of $942,109/$172,922 and $12,968,233/$4,410,980 respectively.
  • Pool has been accruing fees at an APR of around 2-6% for the past days.
  • The potential for a Bancor integration on the Wootrade platform is a good incentive to bring their community over. They seem to be informed on IL and have asked about LPing here multiple times.
  • Ben Yorke, part of Wootrade’s team, has mentioned they would like to “help drive volume and liquidity to potentially get the community to vote for LM rewards”.
  • Wootrade has rewarded Uniswap and Sushiswap with WOO LM reward . A similar situation could happen with Bancor if we can bring their community over and the feature is made available in the meantime.

Stats

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Current CEX/DEX pools

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As per debate:

@glenn

I think we want to have higher liquidity than sushiswap but not necessarily as high as uniswap.

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I would say go higher and start at 500K so that we can have a ~7M pool when it fills up completely. This should be able to support some of the volume that Uniswap has seen in the past 30 days (roughly 6M daily average):

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@tenzent

I support WOO and they’re community and team members have a clear interest in Us aswell. perhaps we could speak to the team to a join LM event to go a long with the co-investment. the LM on our side would assure more TKN side opens up as BNT owners gravitate towards LM pairs

For

  1. A larger co-investment limit on the pool will let LPs provided single sided liquidity and will lead to an increase in pool depth.
  2. More liquidity in the WOO-BNT pool should lead to larger volume from DEX aggregators and professional market makers sent in our direction, as well as potentially the Wootrade platform.
  3. More volume for Bancor leads to more fees for our platform and BNT holders

Against

  1. We should not increase the limit on the pool
  2. We do not need extra liquidity in our platform to support larger trades
  3. We do not need to generate fees for our platform or BNT holders
3 Likes
2

Lets git er’ done w00t

2 Likes
3

Ayyy lfg!! From WOO team “Yep we were actually thinking of offering WOO rewards for stakers on Bancor too. Actually had a call with the team 2 days ago and they did say they are prepping a reward contract so we should wait on that.”

2 Likes