Proposal: Increase Co-investment Limit to 2M BNT on EDEN (EDEN) Pool

DAO Archive (SUBMITTED)
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This proposal is expected to appear on Snapshot for voting on 2021-10-10T12:00:00Z. 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 2M BNT for the EDEN pool.
  • It will open up space for LPs on the TKN side ( EDEN ) and increase the depth of the pool as LPs add liquidity
  • A larger EDEN pool will attract more trades from aggregators and professional market makers to Bancor which ultimately leads to more fees for our platform.

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 EDEN-BNT pool should lead to larger volume from DEX aggregators and professional market makers sent in our direction
  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.

Abstract
There is currently ~1.2M BNT and ~1.5M EDEN tokens in the BNT-EDEN pool. This has resulted in a pool that has roughly ~9.3M in liquidity. At the moment, LPs on the TKN side (EDEN) can’t provide single sided liquidity since there is no capacity. This proposal is seeking to increase single-sided capacity in the EDEN pool by increasing the Co-investment limit to 2M BNT .

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Motivation

If we want to attract more EDEN 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 EDEN is on Sushiswap and it is paired with ETH. Pool depth is roughly ~59M and we should be able to make the Bancor pool deeper to support larger trades with low price impact:

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Currently, the Bancor pool has no space available and LPs can’t provide single sided liquidity on the TKN side (EDEN). I am proposing a 2M Co-investment limit for the EDEN pool which should open up roughly 5.6M in additional single sided liquidity (assuming BNT price at $3.50). If this pools fills up completely, we would have a pool that’s roughly ~20M in depth and be more competitive with the sushiswap pool.

1 Like
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Wow, that’s a lot…

When does this go live?

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It should go up on Sunday. We should capitalize on making this pool as deep as possible while LM is active at the moment. There is currently interest at the moment from $EDEN LPs to stake here due BNT rewards. It will funnel more trading volume in our direction as this pools grows in size and ultimately that’s good for BNT holders.