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.