Proposal to start sunsetting Bancor V3

Sure this is OK on my end and I see no problem with creating separate proposals to achieve this goal that sets the trading liquidity on all these pools to 0 and burns any BNT that is currently allocated. I should be able to spin up new proposals next week to have this go to a DAO vote.

I disagree with this method as once the trading liquidity is set to zero on these tokens there will not be any liquidity left on Bancor to use the vortex effectively which most likely means that they will be dormant without being utilized. Furthermore, if there was any liquidity left on v2.1, this just opens up an arbitrage opportunity that someone else is going to capture and does not help Bancor.

Perhaps more important here is that our focus as a community should be 100% on Carbon and utilizing the protocol to our own advantage (NOT the vortex). We have tokens that are in surplus in need to be converted to ETH and which can help bootstrap Carbon’s TVL, volume, fees, etc… and creating a TKN-ETH pair that sells these tokens for ETH is what should be done to spotlight the new Carbon protocol. The headline that you will see on crypto twitter for this is quite simple and writes itself:

“Bancor DAO uses Carbon to create trading strategies paving the way for other DAOs to do the same”

I do not buy this comment about a decentralized method not existing. The DAO voting for such set of actions to occur should be all that is required for the following:

  1. Create a TKN-ETH disposable strategy on Carbon that sells TKN via a limit order at a 5% premium based on the last 30 day time weighted average price.

Getting the 30 day time weighted average price for these tokens is simple and can be done via any coin tracker site out there. This is an elementary exercise and does not require any oracles.

Average of each day’s price = (Open + High + Low + Close)/4

Average of 30 days = (Average of first day’s price + Average of second day’s price +…+ Average of thirtieth day’s price)/30

I have seen the math of the Carbon whitepaper and I am quite certain this is rudimentary for anyone in the Bancor team to perform.

Why is this comment even here?

The method that I am describing does not need any of this.

  1. Any ETH that is acquired from step 1 to have a 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.

You don’t need any oracles to figure out the price of BNT. You can easily get the price of BNT against ETH from either v2.1 or v3 via the ETH-BNT pool. Again, this is not a hard exercise to perform when you are creating the Carbon strategy.

  1. 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.

We acquire BNT when someone sells into the ETH backing. Burning this BNT should be an easy task as we have done multiple BNT burns in the past.

With the above said, I would like to remind the entire Bancor Community that we previously voted to take

  1. renBTC surplus from v3:
  1. move the funds from the Bancor V3 mastervault to a new address (0x362BA1e1e50FF430E6744522e18FC6D13ef08758) using the “Bancor Network: Deployer” address
  1. From the new address (0x362BA1e1e50FF430E6744522e18FC6D13ef08758) sell renBTC tokens for wBTC via Curve
  1. From the new address, sell wBTC for ETH via Curve
  1. From the new address, sell ETH for BNT via Bancor:
  1. From the new address, burn the BNT

Again, there was no:

to move renBTC from v3 to a new address, sell renBTC for wBTC via Curve, sell wBTC for ETH via Curve, sell ETH for BNT via Bancor, burn the newly acquire BNT. The DAO voting for this to happen was more than enough from a decentralization perspective to have these actions be performed.

I will be asking the same of the Bancor DAO via a separate proposal to perform the steps that I have described. This separate proposal will be brought for vote after the round of proposals to disable trading liquidity on all these tokens has concluded. The explanations that have been given are not sufficient or strong enough to justify why the process that I have described can’t be performed given similar operations performed in the past.

I would like to thank the entire Bancor community for the support that I have receive on my proposal. Together we will push forward and make this a reality.