Proposal to increase the trading liquidity limit in the REQ pool from 1,000,000 BNT to 1,750,000 BNT
For this proposal to pass, it requires a 40% quorum and 66.7% supermajority.
This proposal is expected to appear on Snapshot for voting on 2022-02-06T00:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
TL;DR
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The pool has space for 3,871,522 REQ or roughly ~$894,480.
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This proposal seeks to increase the trading liquidity limit in the REQ pool from 1,000,000 BNT to 1,750,000 BNT.
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Request Protocol would stake 7.5m REQ in the pool when the space opens.
Rationale
DEX liquidity on Ethereum
The REQ pools with deepest liquidity in Ethereum DEXes are:
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The REQ/ETH pool on Uniswap v2 with $2,029,860 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 6.40% [1].
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The REQ 0.2% pool on Bancor with $3,214,362 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 0.20% [2].
The extra liquidity would bring the total pool liquidity to at least $8,260,000 if it is full, with BNT at $2.36.
Volume and fee performance
REQ pool weekly Volume and Fees are presented in Figures 2 and 3, respectively.
Figure 2 - REQ weekly volume since the end of August.
Figure 3 - REQ weekly fees since the end of August.
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 REQ pool from 1M BNT to 1,750,000 BNT.
AGAINST
Keep the trading liquidity in the REQ pool at 1M BNT.
[1] Uniswap Info
[2] Bancor: Converter 702 | 0x483F65300b6Cb6f211aAB39229d494E59Fe24E66