Proposal to extend LM rewards in MKR/BNT Pool

Proposal to Extend LM Rewards on MKR /BNT pool


  • As of now Pool has $23M, and is in our top 10 in terms of total value.

  • Fees generated from swaps are still low as of now so likely will lose most of the MKR participants when LM ceases

  • Current APR is the highest pool for BNT holders at the moment as a %, so it’s a good pool for us BNT supporters

  • propose extending LM rewards in current state for another 12 weeks



I think these are more reasons not to extend it than to extend it. Shows that there is a lack of interest by both people trading MKR and BNT stakers.


I vote no. If the pool isn’t performing, not a great use of LM


The MKR pool has a 0.5% swap fee. How about dropping it to 0.2% so it is more competitive with other DEXs.


happy to try anything that doesnt cost BNT

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Probably not a great candidate for LM extension; however, could be an excellent candidate for some pool fee tinkering. I see @Sjwill is looking at a drop to 0.2%. Might be worth a try.

I will pull some data from the pool later today, and see if we can get a clear picture of our ‘before’ shot.

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In the end of the day, nothing sustainable survives without good competitive swap fees. Should reduce them, but maybe half the LM rewards or extend for a short time to incentivize people to stay after swaps are reduced

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If it doesn’t get traction kill them after a little longer. Perhaps a 4 week extension with reduced swap fees

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Making the fees competitive is a good idea as we are essentially pricing our selves out at the moment. We are not the pool with the highest liquidity and hence don’t have much market power.


The above doesn’t count Uniswap V3 which has 15M in liquidity on the MKR-ETH pair:

Compare to us at ~23M:


The fees for these pools are set between .16%-.3% at the moment. I think that even at .2% that we will be pricing ourselves out as the hop from ETH-BNT trading pair would put us at .35%. If the ETH-BNT pool fees go down to their original value (.10%) then we would be at Uni/Sushi levels (Balancer v1/v2 are at .2% and .16% respectively) if we set the fees to .2% on this pool.

I think that going down to .1% is better for this pair as right now anything that’s above ~$800 doesn’t go to us even if you are swapping BNT-MKR through 1inch:

that’s wild. It would much rather swap the BNT to ETH and go somewhere else. We don’t come into the picture again until the swap is ~550K:

and even then we are only getting 10% of the trade. I will emphasize again that this is BNT → MKR swap and intuitively one would expect trades between $800-$500K to come in our direction when swapping directly (that’s not happening).


That is crazy! Definitely an argument for doing something dramatic. We should do a systematic analysis of all our medium to large pools like this. If we aren’t competitive on a one leg swap, we deserve to fail.


In order to not pollute this proposal with fees discussion, I started Proposal: Lower MKR-BNT Fees to 0.1%. This will allow the community to consider the merits of extending LM on MKR separately from changing the fees on this pool. I will add some data about fees/volume stats on this pair later on today and how that compares to some of the other pools that have had LM rewards.


Since the week of 5/17 to now (roughly 35 days) this is the amount of fees collected for this pool and others that have had or have an ongoing LM campaign:

symbol total_fees
REN $44,138.60
OCEAN $44,944.94
GRT $52,754.60
UNI $55,202.14
BAT $66,479.79
ROOK $87,298.11
ALPHA $117,590.87
WOO $133,954.12
AAVE $142,191.17
SNX $148,400.33
MKR $156,616.77
YFI $160,653.50
wNXM $199,299.34
ENJ $341,082.63
MATIC $887,341.10

The weekly fees for this token has been on the declined since 5/17:

which amounts to the following volume:

I don’t think we need to vote on this proposal yet and we can punt this vote to next week since there is still 12 days left. I wonder if we might see an increase in volume should the following proposal pass:

This should also give @mbr time to pull any data from his end.

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I moved this back down from level 2, as it is not yet in a suitable format.

  • Add a date for snapshot.
  • Delete the “Thoughts?”, as the inference is the subject is still being discussed.
  • The proposal is probably acceptable for Snapshot after these two changes alone; however, it may be beneficial to strengthen the document a little.

I wanted to bump this up to see if it is worth discussing again to extend LM rewards for the MKR pool. What are thoughts and why?