At the time of writing, Matic is ranked #68 on coingecko with a market cap of almost 1B.
Matic has a daily total trading volume of over 500m usd.
Despite having volume metrics this high, very little of this volume occurs on chain.
This is because matic is illiquid.
Having less than 4m usd of liquidity on uniswap, Matic has managed over 3m usd of on chain volume consistently since the beginning of february.
While matic has a native staking solution, the apy is PATHETIC, at just 4%.
I believe that by allowing a coinvestment limit of 1m bnt for matic and assigning LM rewards, we can capture almost all of this 3m usd+ daily volume that matic receives on uniswap.
Matic is already whitelisted on bancor, and the current coinvestment budget has been consumed.
Matic holders will likely chase the higher apy offered by bancor and fill this 1m bnt coinvestment budget quickly.
Because matic is primarily traded on CEX, the volatility is not impacted by gas prices… If this pool were sufficiently liquid, bancor would capture significant arbitrage volume.
This is low hanging fruit.
This proposal is up for discussion! I will be putting this idea to vote in a couple of days.
Disclosure: I own zero matic.