This proposal is expected to appear on Snapshot for voting on 2021-11-14T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
TLDR
- This proposal seeks to increase the Co-investment limit to 1M $BNT for the $MANA pool.
- It also seeks to increase the pool fees from .1% to .2% to be at the same level as the Uniswap (V2 & V3) and sushiswap pools
- It will open up space for LPs on the TKN side ($MANA) and increase the depth of the pool as LPs add liquidity
- A larger $MANA pool will attract more trades from aggregators and professional market makers to Bancor which ultimately leads to more fees for our platform.
For
- A larger co-investment limit on the pool will let LPs provide single-sided liquidity and will lead to an increase in pool depth
- A higher fee will put this pool at the same level as uniswap (V2 & V3) and sushiswap while at the same time letting LPs earn more
- More liquidity in the MANA-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
Against
- We should not increase the co-investment limit on the pool or raise its fees
Abstract
The first attempt for a co-investment increase on the MANA pool is here:
The proposal never made it to snapshot because the pool wasn’t upgraded to a version that would allow for a portition of its fees to go towards the vortex. This is no longer the case and the pool has now been upgraded to support the vortex.
There are currently ~229K $BNT and ~295K $MANA tokens in the BNT-MANA pool. This has resulted in a pool that has roughly ~2.1M in liquidity. This proposal seeks to increase the $MANA pool’s single-sided capacity by increasing the Co-investment limit to 1M $BNT.
Motivation
If we want to attract more MANA LPs to Bancor, we need to open up space in the pool so that they can provide single-sided liquidity. This would allow us to grow the liquidity in the pool and attract larger trades towards our platform which ultimately results in higher fees for Bancor.
The top pool for MANA is on Uniswap V2 and it is paired with ETH. Pool depth is roughly 9M and we should try to build up liquidity for this token since it has attracted a lot of attention recently (game that incorporates NFTs):
There is also a decent size pool on Sushiswap:
Note that both of these pools have a fee of .3% and I am also requesting that the fee be set to .2% for this specific reason (a double hop swap from ETH-BNT and BNT-MANA has a cost of .3%).
Currently, the Bancor pool has no space available and LPs can’t provide single-sided liquidity on the TKN side ($MANA). I am proposing a 1M Co-investment limit for the $MANA pool.