Proposal: Increase Trading Liquidity on PSP-BNT Pool to 200K BNT

DAO Archive (SUBMITTED)
1

Proposal to increase the trading liquidity limit in the PSP-BNT pool to 200K BNT

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

This proposal is expected to appear on Snapshot for voting on 2021-12-19T00:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

Thanks to @tfns who wrote this up for me.

TL;DR

  • The PSP-BNT pool was recently whitelisted and is currently at $19,193 liquidity.
  • The Paraswap DAO has agreed to allocate 1.5m PSP to provide liquidity on the PSP-BNT pool.
  • The pool currently has space for 759,258 PSP.
  • This proposal aims to increase the trading liquidity from 100k BNT to 200k BNT to open up space for the Paraswap treasury deposit.

Rationale

@tenzent proposed allocating a part of the Paraswap treasury to be deposited on Bancor, citing some of its biggest advantages, namely, single-sided staking and impermanent loss protection.

The proposal passed with 89.29% votes in favor of a 1.5m PSP allocation at the time of writing, and can be found on their snapshot.

The pool currently has space for 759,258 PSP to be staked single-sided. Increasing the trading liquidity to 200k BNT would open up around $331k worth of space, or roughly 775k PSP, with BNT at $3.31 and PSP at 0.427.

FOR

Increase trading liquidity in the PSP-BNT pool to 200k BNT to open up space for the Paraswap treasury deposit.

AGAINST

Keep the trading liquidity in the PSP-BNT pool at 100k BNT.

3 Likes
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Thank you, @tenzent for taking this initiative. For anyone that missed it, here is the sister proposal on the paraswap governance forum:

there is no reason for the Bancor DAO to not vote in favor of a proposal given the following:

In fact, I think we might want to grow the trading liquidity on this pool in the future. This proposal has my full support and I will be voting in favor. Thanks!

2 Likes