Proposal: Rescue any available value from protocol owned renBTC in V3

TL;DR

  • Ren has advised holders to bridge back as they are sunsetting this version December 20th 2022
  • Bancor V3 has:
    • MasterVault Balance 20.37031372 renBTC
    • Staked Balance 0.03051750 renBTC
    • Protocol Owned 20.33979622 renBTC
  • This proposal suggests that the BancorDAO should use DeFi protocols to trade its renBTC for BNT and then burn the BNT.
  • This can help reduce the deficit across all pools in V3.
  • If for some reason there is not sufficient liquidity left in DeFi protocols, this proposal suggests a plan B of unwrapping renBTC to BTC and then to WBTC and then converting to BNT and burning the BNT.

History

  • Bancor has had liquidity for renBTC since the launch of Bancor V2
  • The highest levels of liquidity were during late 2020 and early 2021
  • Reminder:
    • The protocol contributed BNT to the pool by virtue of how V2.1 functioned.
    • Users exchanged renBTC for BNT, as a result, the protocol ended up with a balance of renBTC.

Status of REN

Status of renBTC in V3

  • MasterVault Balance 20.37031372 renBTC
  • Staked Balance 0.03051750 renBTC
  • Protocol Owned 20.33979622 renBTC

There is only one LP in the pool with a staked balance of 0.03051750 renBTC.

Process

  • The deadline for this operation is December 20th, 2022 as REN mentioned that they will only support burning/releasing of these assets 30 days after their tweet.
  • This proposal meets our urgent guidelines from BIP

Summary

Plan A

  • If this proposal passes, then the protocol owned renBTC will be removed from the vault and converted to BNT using DeFI protocols.
    • Note: This is likely to involve more than one transaction to reduce slippage (for example, renBTC = > WBTC => ETH => BNT)

Plan B

  • If there is not sufficient liquidity to do this by the time the vote concludes, this proposal suggested unwrapping renBTC and then wrapping it to WBTC. Once that is done, the same conversion to BNT and burn events will follow.

FOR: Allow the Bancor protocol to withdraw its renBTC, convert this to BNT and burn it.

AGAINST: Take no Action

6 Likes

100% For. Lets not leave 20 BTC on the table.

3 Likes

Agree with this proposal. We should not let the $renBTC tokens go to waste and utilize them to get some value out of them. Anything that can help with buying back $BNT from the markets is useful for deficit recovery.

3 Likes

Proposal is now on snapshot for voting

https://snapshot.org/#/bancornetwork.eth/proposal/0x714126258fac1aa4f6ae3bcf0b40e2ce020c66481779e0c26260accf4f6c0cdf

4 Likes

Super heads-up play, and it can burn nearly 1,000,000 BNT. Absolutely for this.

2 Likes

Nothing but full support for this proposal.

2 Likes

Always late to the party… not sure how burning BNT helps. 1M was burned on 9/29 … and it made no impact on the token price. Don’t people need BNT to make their LP whole, or rather just the TKN they staked in the first place ?

Why burn BNT, when you can give the pools ETH/DAI/wBTC which is what the LPs want in the first place. Burning already proved to not impact price back in Sept

The buying helps. Burning just means won’t get sold after.

Buying BNT from the pools does indeed reduce the deficit.

why not also set aside say 30-40% of the proceeds to directly buy TKNs in top 10 TVL Pools… As this is what the LPs need directly. The rest can go to buying BNT. Which only helps by increasing the ratio of IL if the BNT price stays higher… if I’m not mistaken

Looks like it passed and has been completed:

3 Likes

Discussions and rapid executions like this are why I continue to support this DAO and protocol. Kudos to all involved, your efforts are greatly appreciated! :clap:

2 Likes