Proposal: Increase the trading liquidity limit in the FODL pool from 250k BNT to 500k BNT

DAO Archive (SUBMITTED)
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Proposal to increase the trading liquidity limit in the FODL pool from 250k BNT to 500k BNT

For this proposal to pass, it requires a 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on 2022-04-16T23:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

  • The FODL pool has recently been whitelisted , with a recent trading liquidity limit change from 100k to 250k BNT.
  • There is currently space for 924,052 FODL to be staked single-sided in the pool.
  • Increasing the pool’s liquidity will improve price impact and help direct more volume to Bancor.
  • The FODL liquidity on other decentralised exchanges justifies proposing an increase.
  • This proposal seeks to increase the trading liquidity limit in the pool from 250k BNT to 500k BNT.

Rationale

The FODL pools with deepest liquidity in Ethereum DEXes are:

The FODL/USDC 0.3% SushiSwap pool with $7,165,280.59 liquidity, and $11,593.93 daily volume [1].

The FODL/WETH 0.3% SushiSwap pool with $6,056,092.18 liquidity, and $30,522.11 daily volume [2].

The FODL 0.2% Bancor pool with $1,134,247 liquidity, and $5,797 daily volume [3].

The extra liquidity would bring the total pool liquidity to at least ~$2.26m, if the space in the pool is filled. If full, the Bancor FODL pool would only have 31.50% of the liquidity in the FODL/USDC Sushiswap pool. Therefore, if it happens, a proposal to increase the trading liquidity limit again should be considered.

Volume and fee performance

FODL pool weekly Volume and Fees are presented in Figures 2 and 3, respectively.

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image2662×588 82.2 KB

Figure 2 - FODL weekly volume since the end of February.

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image2674×588 80.2 KB

Figure 3 - FODL weekly fees since the end of February.

The pool would benefit from a larger trading liquidity limit to reduce swap price impact, increase volume/fees and thus improve APY.

FOR

Increase trading liquidity in the FODL pool from 250k BNT to 500k BNT.

AGAINST

Keep the trading liquidity in the FODL pool at 250k BNT.

[1] FODL-USDC | SushiSwap Analytics
[2] FODL-WETH | SushiSwap Analytics
[3] Bancor: Converter 726 | Address 0x043CA1F3Aa6939041e57d6Eb7811Cf5C6e56827E | Etherscan

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