Proposal: Set trading fees to .2% on CEL-BNT pool

DAO Archive (SUBMITTED)
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This proposal is expected to appear on Snapshot for voting on 2021-12-26T17:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TLDR

  • This proposal seeks to decrease the pool fees from 1% to .2% to be at the same level as the Uniswap (V2 & V3) pools which have equal or greater liquidity and therefore make us more competitive.

For

  1. A lower conversion fee will put this pool at the same levels as the Uniswap (V2 & V3) pools and bring more volume to our DEX

Against

  1. We should not lower the pool fees

Abstract
There are currently ~294K $BNT and ~254K $CEL tokens in the BNT-CEL pool. This has resulted in a pool that has roughly ~2M in liquidity. This proposal seeks to decrease the pool fees from 1% to .2% to be at the same level as the Uniswap (V2 & V3) pools which have equal or greater liquidity and therefore make us more competitive.

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Motivation

The top pool for CEL is on Uniswap V3 and it is paired with ETH. Pool depth is roughly 6.36M and we should try to match our fees to be competitive:

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There is also a decent size pool on Uniswap V2 with 1.6M in liquidity:

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Note that both of these pools have a fee of .3% and I am requesting that the fee be set to .2% for this specific reason (a double hop swap from ETH-BNT and BNT-CEL has a cost of .3%).

3 Likes
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I am a CEL LP and I support this proposal. I think we will see a lot more volume from aggregators with a competitive fee. Thank you for putting it together glenn.

2 Likes
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I plan to vote against this proposal:

1M is too much exposure to given Celcius’s legal trouble: Celsius’ Chief Revenue Officer Launched a Business With a Convicted Money Launderer: Report

Not to mentioned the 120M they just lost: Crypto Lender Celsius Admits Losses in $120M BadgerDAO Hack

I’m a fan of celsius, but I don’t want that IL

2 Likes
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Interesting :thinking:, seems like the ~$120M was the total from the Badger exploit. The wallet that was identified as belonging to celsius lost ~900 BTC or $50M

They have also recently raised ~750m dollars from a series B round:

They also claim over 22B in TVL in their platform:

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I guess the question is…do we think that this token is going to zero and can potentially drain our trading liquidity?

2 Likes
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I’m not saying they are going to zero. I’m just saying that the hack, the arrest, and being sued by 3 states, might make sense for us to wait a couple months.

2 Likes
6

Sounds reasonable, I will take off co-investment and just make this a trading fee adjustment proposal.

2 Likes
7

Then I will vote in favor

2 Likes
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I would give both options to voters in the snapshot (maybe two different proposals), thus the people who don’t pay attention to the forums also can have input.

4 Likes
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This seems sensible, split the prop in two.

3 Likes
10

Sure, I can certainly do that.

1 Like
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@flymaster29 @tenzent,

See Proposal: Increase trading liquidity on CEL-BNT pool to 1M BNT

1 Like