By now, it should be clear to the entire community that ILP is never coming back and no BNT holder will ever vote for reenabling such a feature ever again. Since the release of Carbon, it is quite clear that this is the future of Bancor for now until more products are released (yes, I think this is just the beginning). To that extent, this proposal is seeking to start sunsetting V3.
Via https://analytics.bancor.network I was able to pull a CSV file of all the current V3 data. From that CSV I filtered out anything that had a master vault balance of 0 as it was just adding noise. The left over tokens where then sorted by the “Surplus/Deficit” percent to produce the following top 10 tokens with the highest surplus:
|Symbol||Master Vault Balance (TKN)||Staked Balance (TKN)||Surplus/Deficit (TKN)||Surplus/Deficit||BNT Trading Liquidity||TKN Trading Liquidity|
This proposal is asking for the following to happen:
- Disable trading on all these pools by setting the funding limit to 0 (some of them already have this value). This will burn around 92,000 BNT from circulation and reduce the supply by this quantity.
- Any surplus token quantities for every token in this list to be removed from the V3 master vault and moved over to Carbon. These tokens to have a strategy created TKN-ETH in Carbon that will sell them via a limit order at a 5% premium based on the last 30 day time weighted average price or current price if 30 day TWAP is not available. I don’t think there is a rush from the DAO so we can wait for markets to get there (if they ever do). Using Carbon is useful as it helps us build up TVL and also lets more people take notice as strategies are created. I ran some numbers on these tokens and came up with the following figures if we were to swap them via 1inch at current prices today. Where possible, I tried to list the most liquid pools so that we can figure out current token prices when creating carbon limit orders:
a. 16,348,844 DRC is roughly 2.85 ETH via 1inch and Uni V2 has the most liquidity (Uniswap Info)
b. 10,174,547 FODL is roughly 12.95 ETH via 1inch and SUSHI has the most liquidity
(https://www.sushi.com/pools/1:0xa5c475167f03b1556c054e0da78192cd2779087f , Pools | Sushi )
c. 3,375 DAO is roughly 2.71 ETH via 1inch and Uni V3 has the most liquidity (Uniswap Info)
d. 6,338,693 AUC has little to no liquidity anywhere and when swapping this amount via 1inch 90% gets routed to Bancor (split evenly between v2.1/v3). No ETH estimate for this one and the following Uni V2 pool can be used to get pricing Uniswap Info
e. 6,116 DDX is roughly 1.08 ETH via 1inch and Sushi/Uni v2 have the most liquidity
(https://www.sushi.com/pools/1:0xc2b0f2a7f736d3b908bdde8608177c8fc28c1690 , Uniswap Info)
f. 37,332 KTN is roughly 4.87 ETH via 1inch and Uni v2 has the most liquidity (Uniswap Info)
g. 789 SHEESHA is roughly 2.77 ETH via 1inch and Uni v2 has the most liquidity
h. 73,701 APW is roughly 12.048164 ETH via 1inch and Sushi has the most liquidity
Pools | Sushi
i. 32,069 IDLE is roughly 4.05 ETH via 1inch and Sushi/Uni have the most liquidity
Pools | Sushi
j. 1,640,917 HEGIC is roughly 7.68 ETH via 1inch and Sushi/1inch have the most liquidity
Pools | Sushi
Some of these have high slippage but I estimate roughly 45-55 ETH or so can be recovered here if all orders are filled in the future.
- Whatever ETH is recovered from these sells to in the future create a carbon BNT-ETH strategy that creates a buy wall at a 5% discount based on current BNT price. The buy wall to be revised every 7-30 days and when the current price of the buy wall is off by 10% or more from the current BNT price. The goal being that the buy wall should move up as the BNT price goes up.
- Whatever BNT is recovered from takers eating into the buy wall to later be burned after a sufficient amount of BNT is acquired. This can be voted via a separate proposal similarly to recent proposal that burned BNT which had accumulated in V3.
Assuming this proposal passes, the DAO can considered repeating this process for the next 10 tokens until all pools in V3 that have a surplus are disabled.
For: Approve the plan outlined in steps 1-4
Against: Do nothing