Proposal to Determine Whitelisting Status of sUSD on Bancor V3

DAO Archive (SUBMITTED)
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This proposal is expected to appear on Snapshot for voting on June 19, 2022 (Lisbon) . Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision. To pass, this proposal needs a quorum of 35% and 66.7% FOR votes.

TL;DR

  • BIP17 allowed for the migration of all active V2.1 pools to V3
  • The DAO’s whitelisting requirements are here
  • There are certain cases in which tokens were whitelisted before these requirements were in place.
  • This proposal is for the DAO to vote specifically on some of these pools where the token contract may add significant risk.
  • NOTE: These exceptions are only possible for tokens that were whitelisted in V2.1.
  • Other tokens that were not whitelisted on V2.1 have no such exemptions as they were not live on Bancor before the whitelisting requirements were in place.

Summary:

  • As outlined in the recent blog post there are 9 tokens that will be each brought up specifically for the DAO to vote on a white listing in V3.
  • This proposal is for sUSD
  • sUSD’s token contract allows for burning of sUSD from any account, including the token vault contract on Bancor V3.
  • Link to contract: $1.01 | Synth sUSD (sUSD) Token Tracker | Etherscan

Voting Instructions:

To whitelist sUSD on Bancor V3, vote FOR this proposal

To do nothing, vote AGAINST this proposal

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no liquidity anyway

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I think that sUSD is a little different to USDT:

  1. v2.1 has no AUM or volume, so little market demand for Bancor liquidity.
  2. Synthetix DAO control the functions so we can open a dialogue with them to better understand the burn
  3. Synthetix community members may pledge to deposit liquidity on B3.
  4. I think most synthetix activity is on Optimism, How much volume is on L1 (etherscan indicates ~$100 M sUSD transfers per day).

It looks like sUSD was added to v2.1 as part of the boot strapping Have we ever seen deposits of sUSD to v2.1?

Personally, I’m leaning towards a NO unless we have some information around the burn and an expectation that we will get some deposits.

Does anyone have any contacts within Synthetix community (I have 1 or 2).

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I stand by OCEAN and USDT - communities that seem interested

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AFAIK, most of sUSD liquidity (86m) resides on Curve and the pool is currently being incentivized by SNX:

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At the moment, it is hard for us to compete with stablecoin pools since we only support a constant product bonding curve. At some point in the future, we might have a solution for “liked” assets but even if we build up any liquidity for sUSD on Bancor before then, it will be relatively small pool in the grand scheme of things. The point being, that we won’t lose out on much imho if we don’t bring this pool over to B3.