# Proposal: Increase Co-investment Limit to 500K BNT on TRAC (OriginTrail) Pool

**URL:** <https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123>\
**Category:** DAO Archive (SUBMITTED)\
**Created:** [November 7, 2021, 6:08pm UTC](https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123 "2021-11-07T18:08:37Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![fcmarine](https://avatars.discourse-cdn.com/v4/letter/f/bcef8e/32.png) [@fcmarine](https://gov.bancor.network/u/fcmarine)\
**Post date:** [November 7, 2021, 6:08pm UTC](https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123/1 "2021-11-07T18:08:37Z")

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## This proposal is expected to appear on Snapshot for voting on November 14, 2021 4:00 AM . 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 **500K $BNT** for the **$TRAC** pool.

- A larger **$TRAC** pool will attract more trades from aggregators and professional market makers to Bancor which ultimately leads to more fees for our platform.

- A larger co-investment limit on the pool will let LPs provide single-sided liquidity and will lead to an increase in pool depth

- More liquidity in the **TRAC-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 **$TRAC** holders

**Motivation**

On Nov 02, 2021 TRAC was listed on Coinbase. This listed skyrocketed TRAC’s trading volume and at the time of this writing TRAC is seeing approx **$115M** volume on it’s Coinbase TRAC-USD pair alone. This volume increase is somewhere in the range of a 40x-50x increase in volume since the **$TRAC-BNT** pool was originally created. Since this listing there has been increased demand from the TRAC community for alternative sources of passive income and one of these demands is a larger limit for the **$TRAC-BNT** pool. If we want to attract more TRAC 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.

Currently, the Bancor pool has no space available and LPs can’t provide single-sided liquidity. I am proposing a **500K** Co-investment limit for the $TRAC pool. As the time of this writing **$TRAC** is currently ranked 7th in volume on Bancor with a very small co-investment limit.

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**Author:** ![Kirk](https://avatars.discourse-cdn.com/v4/letter/k/f9ae1b/32.png) [@Kirk](https://gov.bancor.network/u/Kirk)\
**Post date:** [November 8, 2021, 1:41am UTC](https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123/2 "2021-11-08T01:41:29Z")

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There are a few interesting things to note about TRAC pairs on decentralized exchanges. (1) There is no team-incentivized pool on Uniswap or other decentralized exchange. (2) In the last week there were some rather large liquidity removals from Uniswap pools, making swaps of 2000+ TRAC (currently $5000) untenable due to increased slippage.

I think the dramatically increased CEX volume and lack of a consistent liquidity pool on Uniswap would make Bancor the go-to exchange for decentralized swaps and dex aggregators. Something to keep in mind.

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**Author:** ![tfns](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/tfns/32/465_2.png) [@tfns](https://gov.bancor.network/u/tfns)\
**Post date:** [November 8, 2021, 1:55am UTC](https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123/3 "2021-11-08T01:55:18Z")

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Definitely agree with this and have seen some community interest in staking TRAC with Bancor!

The [TRAC/ETH pool on Uniswap v2](https://v2.info.uniswap.org/pair/0x1a58aa618df8f1ec282748fef6185c1a1cc2faa6) has a liquidity of $679,352, and the [TRAC/ETH on Uniswap v3](https://info.uniswap.org/#/pools/0xb1914469141ebb6e244e75cee3f35d43bf6b85e5) has a liquidity of $579.85k.

The current co-investment is 100k BNT. A 500k BNT co-investment would allow enough space for a pool with at least $4.5m in liquidity when full.

@fcmarine Could you please add the following paragraph?

## 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.

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**Author:** ![fcmarine](https://avatars.discourse-cdn.com/v4/letter/f/bcef8e/32.png) [@fcmarine](https://gov.bancor.network/u/fcmarine)\
**Post date:** [November 8, 2021, 2:30am UTC](https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123/4 "2021-11-08T02:30:07Z")

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@tfns Will do. Thank you!

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**Author:** ![ahausheer](https://avatars.discourse-cdn.com/v4/letter/a/ebca7d/32.png) [@ahausheer](https://gov.bancor.network/u/ahausheer)\
**Post date:** [November 12, 2021, 11:21pm UTC](https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123/5 "2021-11-12T23:21:14Z")

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Assuming it passes, what happens after the 14th? What is the process and timeline, I would like to keep close watch on being able to add to the pool asap, but am not sure how to do so, or what, or where to watch. Thanks everyone.

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**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\
**Post date:** [November 13, 2021, 9:21am UTC](https://gov.bancor.network/t/proposal-increase-co-investment-limit-to-500k-bnt-on-trac-origintrail-pool/3123/6 "2021-11-13T09:21:10Z")

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If this becomes the deepest pool on DEXes by a large margin (once it fills up) then we should consider raising the fees on this pool to .5%. This would lead to more profit for LPs and less for arbitrageurs. We have had great success with other pools like $AMP, $wNXM, and $ARCONA (to name a few) where we have attracted the most liquidity and can therefore set a higher fee on the pool (since we have no competition from other DEXes).
