I am of the opinion that we should let all the other communities that benefit our platform have a chance at a liquidity mining campaign at least once during the 72 week trial period. This is how we grow our user base and convert people over since most are not aware of our value proposition (IL protection and single sided deposit) that differentiate us from other DEXes. I am typically not hugely in favor of renewals unless there is a strong argument (e.g. The Aave renewal is useful since we are applying for having BNT onboarded as collateral Proposal to extend LM on AAVE for an additional 12 weeks - #10 by glenn). Can a similar value proposition be made from the YFI community to the Bancor community that would make for a stronger argument?
Since fees were mentioned, I was curious to see how Aave, SNX, and YFI ranked against each other given that each liquidity mining program runs for ~12 weeks and we mint 10K BNT per week (I think all these pool get LM rewards at the medium level). That’s roughly 120K total BNT for a campaign assuming that everyone gets rewards at 1X but since most people stick around for the full 12 weeks then we actually mint a max of 2x120K BNT = 240K BNT and that’s ~$1.68M (or $840K at 1x) assuming BNT price at $7.00.
Full data is at the bottom, I started from the week of 12/28/2020 until now and got the following:
| Token | Total Fees | Total Volume |
|---|---|---|
| AAVE | $252,653.17 | $135,637,961.80 |
| SNX | $288,283.13 | $153,246,681.17 |
| YFI | $337,713.45 | $169,551,424.21 |
Going by the above, YFI did have the highest total fees in this period but the cost to us was a lot higher (we minted 120K-240K BNT in rewards). By this measurement alone, I wouldn’t have personally renewed any of these pools and I only voted in the renewal for one of them (not because of the fees argument but mostly due to a strategic decision).
With that said, fees are not everything and user acquisition is my opinion is more important. If we have to chose between extending rewards on existing pools vs enabling LM rewards for a new pool that would potentially let us bring hundreds to thousands of new users to our platform then we should always vote for the latter since ultimately that’s what we need for growth. Even though we might not be able to make up the cost of rewards in fees during the LM period for a pool, in the long run those new users might stick around and make Bancor their forever home (e.g. you mentioned that:
“Yearn LM rewards expired about 2-3 weeks ago and since then, the pool still retained 75% of its TVL while increasing the fees generated for the protocol.”
maybe the value proposition of Bancor is strong and they really do love what we provide?
).
| symbol | time | Conversion Fees in USD | Volume in USD |
|---|---|---|---|
| AAVE | 12/28/2020 0:00 | $221.68 | $110,616.75 |
| AAVE | 1/4/2021 0:00 | $1,733.30 | $1,007,939.68 |
| AAVE | 1/11/2021 0:00 | $3,479.43 | $3,475,948.72 |
| AAVE | 1/18/2021 0:00 | $3,825.41 | $3,821,587.80 |
| AAVE | 1/25/2021 0:00 | $5,371.40 | $5,366,029.64 |
| AAVE | 2/1/2021 0:00 | $11,688.16 | $8,915,280.30 |
| AAVE | 2/8/2021 0:00 | $11,921.27 | $5,948,715.87 |
| AAVE | 2/15/2021 0:00 | $27,615.70 | $13,780,236.65 |
| AAVE | 2/22/2021 0:00 | $29,636.08 | $14,788,402.26 |
| AAVE | 3/1/2021 0:00 | $28,790.37 | $14,366,396.51 |
| AAVE | 3/8/2021 0:00 | $22,587.47 | $11,271,146.19 |
| AAVE | 3/15/2021 0:00 | $12,046.95 | $6,011,426.77 |
| AAVE | 3/22/2021 0:00 | $11,900.03 | $5,938,113.06 |
| AAVE | 3/29/2021 0:00 | $16,515.26 | $8,241,113.23 |
| AAVE | 4/5/2021 0:00 | $17,592.65 | $8,778,733.91 |
| AAVE | 4/12/2021 0:00 | $37,864.10 | $18,894,184.30 |
| AAVE | 4/19/2021 0:00 | $9,863.91 | $4,922,090.14 |
| $252,653.17 | $135,637,961.80 |
| symbol | time | Conversion Fees in USD | Volume in USD |
|---|---|---|---|
| SNX | 12/28/2020 0:00 | $2,479.38 | $1,237,208.62 |
| SNX | 1/4/2021 0:00 | $6,732.98 | $3,459,783.15 |
| SNX | 1/11/2021 0:00 | $4,308.09 | $4,303,779.96 |
| SNX | 1/18/2021 0:00 | $4,144.25 | $4,140,101.55 |
| SNX | 1/25/2021 0:00 | $4,787.77 | $4,782,978.57 |
| SNX | 2/1/2021 0:00 | $10,122.72 | $7,724,558.57 |
| SNX | 2/8/2021 0:00 | $13,164.69 | $6,569,177.90 |
| SNX | 2/15/2021 0:00 | $24,621.67 | $12,286,211.74 |
| SNX | 2/22/2021 0:00 | $38,680.99 | $19,301,814.77 |
| SNX | 3/1/2021 0:00 | $39,445.36 | $19,683,234.03 |
| SNX | 3/8/2021 0:00 | $17,602.21 | $8,783,502.66 |
| SNX | 3/15/2021 0:00 | $14,885.25 | $7,427,740.15 |
| SNX | 3/22/2021 0:00 | $20,477.86 | $10,218,451.19 |
| SNX | 3/29/2021 0:00 | $26,570.33 | $13,258,595.51 |
| SNX | 4/5/2021 0:00 | $21,867.34 | $10,911,802.80 |
| SNX | 4/12/2021 0:00 | $29,610.42 | $14,775,601.75 |
| SNX | 4/19/2021 0:00 | $8,781.84 | $4,382,138.24 |
| $288,283.13 | $153,246,681.17 |
| symbol | time | Conversion Fees in USD | Volume in USD |
|---|---|---|---|
| YFI | 12/28/2020 0:00 | $13,382.23 | $3,810,112.21 |
| YFI | 1/4/2021 0:00 | $29,762.12 | $8,612,856.64 |
| YFI | 1/11/2021 0:00 | $7,166.51 | $7,159,344.11 |
| YFI | 1/18/2021 0:00 | $4,956.63 | $4,951,676.31 |
| YFI | 1/25/2021 0:00 | $3,444.45 | $3,441,005.74 |
| YFI | 2/1/2021 0:00 | $4,450.58 | $4,446,125.24 |
| YFI | 2/8/2021 0:00 | $22,350.51 | $11,282,294.23 |
| YFI | 2/15/2021 0:00 | $30,992.24 | $15,465,125.34 |
| YFI | 2/22/2021 0:00 | $21,501.71 | $10,729,354.85 |
| YFI | 3/1/2021 0:00 | $32,229.26 | $16,082,398.62 |
| YFI | 3/8/2021 0:00 | $26,332.40 | $13,139,867.97 |
| YFI | 3/15/2021 0:00 | $17,578.87 | $8,771,858.35 |
| YFI | 3/22/2021 0:00 | $13,304.35 | $6,638,873.00 |
| YFI | 3/29/2021 0:00 | $16,924.98 | $8,445,563.89 |
| YFI | 4/5/2021 0:00 | $31,632.11 | $15,784,422.60 |
| YFI | 4/12/2021 0:00 | $43,074.73 | $21,494,290.49 |
| YFI | 4/19/2021 0:00 | $18,629.77 | $9,296,254.60 |
| $337,713.45 | $169,551,424.21 |
My dune query was a fork of the Bancor Revenue and Earnings v2.1
query from the official Bancor dashboard but adapted to show weekly fees as opposed to daily.