This proposal is expected to appear on Snapshot for voting on 2021-11-07T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
Enable a limit change from 50,000 BNT up to 500,000 BNT minting limits on ARCONABNT pool
Vote “for” to enable this change, or vote “against” not to enable it.
Background Info:
After Facebook announced of Meta with metaverse concept, we got a big rush of new blood. It’s a good chance to increase our market impact. In just a 2 days, the liquidity in the pool of the Bancor network exceeded $2.664M, MCap increased x10 to 21.4M, and there are still a lot of people willing to contribute assets to the pool. This move helped strengthen the ARCONA token and expand our community. ARCONA seems to be performing well now. ARCONA is now over 100% APY. There is no room in the pool for more ARCONA LPs. There is no active LM rewards on the ARCONA pool, and not everyone interesting add liquidity for second side(BNT) of ARCONABNT.
Therefore, we propose to vote to increase the size of co-investment from 50 thousands BNT to 500 thousands BNT. The possibility of one-way staking encourages our token holders to use the Bancor protocol more actively and to increase the pool size. As liquidity deepens, so will the yield on swaps for LP.
The Arcona XR Metaverse team would like to thank everyone who voted to submit our project to Whitelist Bancor.
Thanks for bringing up this proposal. I think the community would gladly support a space increase for this pool and the 500K increase should open up roughly 450K in $BNT liquidity. That should be roughly ~$1.8M in single-sided staking space on the Arcona side assuming $BNT price at $4
One thing to note is that I did see a Uni V3 pool that was recently seeded:
note that the fees on the Uni pool is set to 1% while we are at 5% on the BNT-ARCONA pool. What this means is that more volume might go towards the uni pool once that starts to grow. You can start seeing this already on the Uni V2 pool that had meaningful liquidity added this past week:
the volume has started to surpass the BNT-ARCONA pool already. It might be wise to consider reducing the fees on the BNT-ARCONA pool to attract more volume and make it more competitive.
Don’t worry about another pools, because only bancor has the best deal, impermanent lost protection. Thats why most members use Bancor instead of other platforms. But Bancor lost in popularity, that why pool fee was increased to 5% i think. Before it was 1%, arbitragers use bancor for take easy money. On uniswap v2 was 10% of supply coins on pools, Bancor around 90%, but volume was arround 70% on uniswap, and 30% on Bancor. After increased i checked that volume was 60/40, but it’s not important thing, more important that pool started to get x5 commisions. Before that, this volume got arbitragers who buy at bancor and sell on uniswap. We need to start compaig, to explain people that they just give his money to arbitragers when buy at lowest liquidity pool. It’s was good note, and i think i made a good answer. It’s linked not only Arcona token, it’s linked Bancor protocol in general. I know that Arcona team explain to their community, that better to use 1inch, because agregator automaticaly use the best way to sell/buy tokens.
What about % fee, I think the team of Arcona will not keep hight % so long, just need time to decrease it slowly.
Is that something that we can follow up with the team (I think they own the pool)? I see that there are some new listings for Arcona in certain CEXes and high fees will probably make us not competitive.
