wNXM is one of the next assets to have LM rewards finish. Currently has $30m + pool size, but potentially more importantly generates a high APY from fees alone. Granted that this is because the fee rate is 1% versus 0.5 or 0.2 for other pools.
I don’t know that much about the coin, but does seem that a lot of transactions are routed through bancor and it not something we should lose. I believe this pool should be granted LM extension. I know the fee rate is high, but also wonder if we should look at introducing this rate to newever coins, to decrease the reliance on LM rewards?
This proposal is due to appear on Snapshot on 3rd May, 12:00 pm UTC. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
Proposal to extend LM on wNXM and increase co-investment limit for an additional 12 weeks.
TL;DR
• Extend LM rewards on the wNXM pool for a further 12 weeks.
• wNXM has attracted a liquidity pool of $28m at the time of writing.
• wNXM has been a top performer on Bancor Network
• There’s currently zero space on the TKN side (wNXM)
• Add a co-investment limit 1m BNT
Voting Instructions
Vote FOR to extend LM rewards & increase co-investment limit on wNXM for 12 weeks
Vote AGAINST to let LM rewards on wNXM run out in 13 days (at the time of writing)
wNXM pool has the highest liquidity when compared to others AMM and CEX. It has been performing well in terms of APR / able to drive traders to trade on Bancor. There’s also currently zero space for wNXM to stake on wNXM/BNT pool. Continuation of LM is crucial to drive further trading volume and liquidity for both wNXM and BNT holders.
I propose to continue the current LM rewards for a further 12 weeks
This proposal will appear on Snapshot for a DAO decision on 3rd of May, 12:00 pm UTC.
I think this might be a good time to propose an increase to the co-investment limit, too. The lack of TKN space means LM is not going to be very effective. Increasing the co-investment limit might bring in some more liquidity, and means we can get some extra mileage out of an LM extension.
How do you feel about setting a date for the 3rd May, and add a co-investment increase to it? It is still only at 20k, so probably overdue.
@mbr hey mark, thanks for the reply. I updated the proposal as discussed and regarding the co-investment, I put 1m BNT. I’m not sure if it’s enough or we need more.
As far as I know right now we’re having 10-20k BNT co-investment every week for 12 weeks, that will leave us about 120k-240k BNT co-investment limit.
Full disclosure: I am a large wNXM holder and I am an LP in this pool. I have previously talked about NXM in the Armor/arNXM whitelisting proposal. I still think it is in our advantage to maintain a good relationship with this community since the premiums on insurance for the Bancor community is low (2.6%) due to the large amount of NXM being staked in NexusMutual against the Bancor smart contract.
To shed some light here, the pool appears to have filled completely towards the beginning of this month:
We have the largest pool (by a large margin) compare to other DEXes:
If the goal is to grow the liquidity in this pool by increasing the single sided capacity on the wNXM side then I think we probably want to set the co-investment limit to 2M BNT. The current minting limit is 1M on the pool at the moment, you can check this via the anchor address on the LiquidityProtectionSettings contract.
The 2M BNT co-investment will roughly open up another 6M in single sided capacity on the wNXM side assuming BNT price of $6.00.
@mbr, If a pool already has more BNT than the minting limit (e.g. this pool has ~2.55M BNT at the moment in the contract), would a 2M BNT co-investment limit do anything? Or do we want to set the co-investment to 3M?
Since fees was brought up, I did the same analysis that I did on the YFI renewal proposal.
I started from the week of 12/28/2020 until now and got the following:
Token
Total Fees
Total Volume
wNXM
$505,682.67
$50,062,584.32
YFI
$352,815.30
$177,087,248.60
SNX
$298,138.92
$158,164,719.77
AAVE
$266,949.26
$142,771,711.05
So far, this has been the highest generating pool in terms of fees of those that have come up for renewal. With that said, I think there is potential for greater collaboration between our communities. It would be cool if we can potentially provide an insured single sided IL protection option when LPs add liquidity (perhaps this is something for the armor folks? @AzeemFi).
Lastly, I would love to see some support from the Nexus Mutants here and in social media when voting goes live.
While I may be a small LP on the BNT side, I’d vote in favor because a) I think it is important to maintain Bancor’s position as the token’s largest DEX which, as mentioned earlier, should bring traders to us, and b) the LP is a proven high fee earner. Besides that, I happen to think the premise behind NXM is a novel application of smart contracts to insurance; however, I don’t own any NXM or wNXM at this time.
