Proposal: Route the vortex burner through the V3 pool

DAO Archive (SUBMITTED)
1

This proposal is expected to appear on Snapshot for voting on 2022-07-10T15:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

We should route the vortex burner through the V3 pool. As it currently stands, it’s still going through the V2.1 pool.

Reasoning :

  • The VBNT V3 pool is currently bigger than the V2.1 one, meaning that v2.1 is subject to higher slippage on all swaps
  • The earnings from these swaps will be better distributed to BNT holders on B3, due to how B3 is designed ( in V2.1 it’s isolated per pool, while in V3 it’s spread across all BNT stakers)
  • It’s a good way to incentivize VBNT stakers to migrate their positions to V3. This way we don’t need a separate burner cap on the V2.1 VBNT pool, now that the vortex will be ramped up to a 100% (see proposal)

Below the screenshots of the current V3 pool and V2.1 pool respectively:

vortex v3

Etherscan link

vortex v2.1

Etherscan link

I believe the above reasoning makes this a logical choice and also preparation to completely migrate from V2.1, which will in turn make it easier for the developers to keep an organized view.

TLDR;

Vote FOR to have the vortex swaps route through the B3 pool
Vote against to have the vortex routing stay as it is.

6 Likes
2

Great Idea!

Why using V3? Why not have it but from whichever pools has more liquidity? Or is that just gonna be V3 from now on.

1 Like
3

Interesting proposal @AnimaDunk

Thank you for posting - makes sense to me personally

2 Likes
4

Assuming all pools on v3 have enough liquidity to trade the different tokens to BNT (and then to vBNT), it can be done.

2 Likes
5

Do the v3 pools need to be bootstrapped or what is “enough liquidity”

6

Sounds great to me - I’m for it

1 Like
7

Yup, v3 pools require bootstrapping and if they fall below a certain amount of liquidity (currently at the TKN equivalent of 10K BNT), they shut down for trading.

2 Likes
8

The Bancor 3 $vBNT pool already has more liquidity and will most likely continue to grow in the future. I don’t see the bancor DAO ever allowing deposits in v2.1 anymore so that means that the v2.1 pool will no longer grow anymore.

1 Like
9

I think what this is specifically asking for is to have the last leg of the Vortex burner in v2.1 to go through the B3 $vBNT pool. I think at the moment we do the following in v2.1:

  1. Collect 70% of all swap fee revenue in v2.1 for the vortex.
  2. If the fee is in BNT then we keep it as is
  3. If the fee is in TKN then we swap this for BNT using the v2.1 pools
  4. Once we have BNT, we swap this for vBNT using the v2.1 vBNT pool and burn it

Step 4 is what is currently being asked to be changed.

2 Likes
10

I see. Yup, that makes sense.

1 Like
11

I have set the time and date for this proposal to be up on snapshot to today. It has been 8 days since it was submitted.