Proposal: Increase Co-investment Limit to 2.1M BNT on the ROOK-BNT pool

DAO Archive (SUBMITTED)
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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.

To pass, this proposal requires 40% quorum and 66.7% supermajority on the Bancor DAO

Additionally, this proposal is contingent on the passing of the KeeperDAO proposal ( Co-invest ROOK in Bancor ROOK-BNT Pool) to deposit a portion of their treasury in Bancor.

TLDR

  • This proposal seeks to increase the Co-investment limit from 1.6M BNT to 2.1M BNT for the ROOK/BNT pool.
  • KeeperDAO is looking to deposit a portion (~6400 ROOK) of their treasury on Bancor. Opening space in the pool will allow for these funds to be deposited on Bancor if KeeperDAO’s proposal passes in their governance.
  • A larger ROOK/BNT pool will reduce price impact and therefore attract more trades from retail users, aggregators, and professional market makers to Bancor.

Rationale

  • The KeeperDAO team will start performing ROOK buybacks [1] [2]. At the current revenue level, this 100% will translate into approximately $1m being used for the buyback every month.
  • LM rewards will be considered if the KeeperDAO community is in favour of moving the buyback mechanism to Bancor. For now, it is essential to increase the space in the pool to allow for more liquidity and consequentially drive more ROOK volume to Bancor.
  • The space in the pool isn’t full yet but incentivising it is definitely worth it.

Abstract

There is currently ~1.3M BNT and ~22K ROOK tokens in the BNT-ROOK pool. This has resulted in a pool that has roughly ~11.2M in liquidity. At the moment, we won’t be able to support the ROOK treasury and they won’t be able to provide single-sided liquidity since there is not enough capacity. This proposal is seeking to increase single-sided capacity in the ROOK pool by increasing the Co-investment limit to 2.1M BNT .

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For

Increase pool co-investment from 1.6M BNT to 2.1M BNT.

Note: This proposal is contingent on the passing of the KeeperDAO proposal Co-invest ROOK in Bancor ROOK-BNT Pool to deposit a portion of their treasury in Bancor.

Against

Keep the pool co-investment at 1.6M BNT.

[1] KIP-4: Buy back and burn 100% of Ninja's new revenue initiative - Final - KeeperDAO
[2] Snapshot

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Here’s the sister proposal over on KeeperDAO’s forum: Co-invest ROOK in Bancor ROOK-BNT Pool - Draft - KeeperDAO

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Thanks, @tfns for putting this together.

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This should go up for vote later today again.

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