Proposal to start sunsetting Bancor V3

[alphavalion]

Agree with Fox Steven. This proposal is regarding V3 and any token surpluses there.

@Jimmy

I’m a little bit confused about surplus. Take MPH for example, https://analytics.bancor.network/ tells us there is a surplus for MPH, however my MPH position at V2 is in deficit.

This question is better suited for telegram or discord as it has nothing to do with my proposals.

[alphavalion]

As of current time in Mexico 13:28 UTC-6, all 10 proposals that are on snapshot will pass if the voting concludes tomorrow. It is time for the Bancor DAO to consider the next 10 set of tokens to have their funding limit set to 0 and therefore any BNT trading liquidity burned.

Symbol	Master Vault Balance (TKN)	Staked Balance (TKN)	Surplus/Deficit (TKN)	Surplus/Deficit	BNT Funding Limit	BNT Trading Liquidity	TKN Trading Liquidity	Vault/Trading Liquidity
MTA	248,271	504	247,768	49164.89%	1,000,000	0	0	0.00%
NDX	1,084,269	4,491	1,079,778	24042.64%	250,000	14,865	329,147	30.36%
ARMOR	2,858,448	16,840	2,841,608	16873.75%	250,000	22,562	1,685,776	58.98%
OMG	49,954	508	49,445	9725.31%	138,462	0	0	0.00%
YFI	76	1	75	7250.74%	5,000,000	1,182,802	76	100.00%
COMP	3,530	48	3,482	7215.58%	2,000,000	305,647	3,530	100.00%
ALPHA	2,402,119	34,014	2,368,105	6962.07%	1,000,000	19,957	68,270	2.84%
PHTR	897,664	15,263	882,401	5781.31%	801,950	37,991	815,585	90.86%
ROOK	9,519	165	9,354	5666.32%	2,500,000	42,060	302	3.17%
ERSDL	22,791,429	622,653	22,168,775	3560.37%	500,000	13,582	2,105,141	9.24%

The next 10 tokens are sorted by surplus percent and by my own calculations in total we should see a reduction of 1.6 million BNT if these pools are disabled. This is by no means a small amount and any reduction in the BNT supply should be celebrated even if it is as small as 1 BNT.

I will be bringing up individual proposals for the Bancor DAO to vote on setting the funding limit to 0 for these token pools. I would like to thank the entire Bancor community for the support that I have receive on my proposals.

[alphavalion]

I have created another 10 proposals to be voted on June 11th 2023

Proposal to set funding limit to 0 on ERSDL Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR ERSDL pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidi…

Proposal to set funding limit to 0 on ROOK Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR ROOK pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidit…

Proposal to set funding limit to 0 on PHTR Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR PHTR pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidit…

Proposal to set funding limit to 0 on ALPHA Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR ALPHA pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidi…

Proposal to set funding limit to 0 on COMP Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR COMP pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidit…

Proposal to set funding limit to 0 on YFI Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR YFI pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidity…

Proposal to set funding limit to 0 on OMG Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR OMG pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidity…

Proposal to set funding limit to 0 on ARMOR Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR ARMOR pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidi…

Proposal to set funding limit to 0 on NDX Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR NDX pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidity…

Proposal to set funding limit to 0 on MTA Bancor 3 pool

Expected on Snapshot on June 11th, 2023 This proposal is split from the discussion that has happened in this thread and Bancorians should read that post to have an understanding about this proposal TL;DR MTA pool on Bancor v3 has a surplus This proposal is looking to set the funding limit to 0 Summary This is fairly simple and straight forward. Setting the funding limit to 0 on a Bancor 3 pool means that it no longer trades as there is no BNT liquidity allocated to it. Any BNT liquidity…

[OverAnalyser]

Thank you @alphavalion

I agree that we should halt trading on some tokens that are in surplus to both reduce the liquidity of BNT (and so make burns more effective) and avoid further IL if those tokens go into deficit due to a TKN pump.

However, if we don’t yet have the ability to sell the excess TNK, I think we should consider keeping surplus tokens with large fees live.

Some quick numbers from the Analytics page and UI for Pools:

	7 day fees (S)	Vault balance (TKN + BNT) $	Vault balance (TKN) S	Surplus
MTA	$0	$0	$0	$0
NDX	$0	$37,878	$18,939	$18,860
Armour	$2	$27,536	$13,768	$13,686
OMG	$0	$0	$0	$0
YFI	$123	$890,866	$445,433	$439,387
COMP	$16	$232,080	$116,040	$114,495
Alpha	$8	$556,918	$278,459	$282,458
PHTR	$4	$31,478	$15,739	$15,465
ROOK	$0	$1,091,544	$545,772	$536,292
ERDSL	$2	$105,952	$52,976	$51,539

@ $123 fees over 7 days is ~$6.400 per year for the YFI pool or ~$5,700 BNT burnt.

I intend to vote NO on Both YFI and COMP in order to keep those pool generating fees within B3. [Note I would vote yes, if we can use / sell the surplus TKN]

I intend to vote YES on all the other pools.

Thanks again

OA

[alphavalion]

Thank you @OverAnalyser

I have created this proposal now that we have 10 tokens that were disabled last week. I would like to get your feedback and the rest of the Bancorian community as well. I am starting with DDX first and if this proposal passes, we can create Carbon orders for the other tokens as well.

Proposal to create a DDX-ETH strategy on Carbon using DDX Bancor 3 Surplus

At which price should surplus tokens be sold? poll Expected on Snapshot in the future This proposal is split from the discussion that has happened in this thread https://gov.bancor.network/t/proposal-to-start-sunsetting-bancor-v3/4279 and Bancorians should read that post to have an understanding about this proposal TL;DR DDX token surplus in Bancor v3 to be moved to a new address From the new address create a sell limit disposable ETH-DDX carbon strategy Calculate 30 day twap at time of s…

[alphavalion]

Another round of voting has concluded and it seems like all 10 pools will be disabled per the Bancor DAO votes.

It is time for the Bancor DAO to consider the next 10 set of tokens to have their funding limit set to 0 and therefore any BNT trading liquidity burned.

Symbol	Master Vault Balance (TKN)	Staked Balance (TKN)	Surplus/Deficit (TKN)	Surplus/Deficit	BNT Funding Limit	BNT Trading Liquidity	TKN Trading Liquidity	Vault/Trading Liquidity
UMA	6,838	204	6,634	3247.22%	500,000	19,584	4,602	67.30%
MPH	63,838	1,987	61,851	3112.89%	700,000	17,324	4,741	7.43%
OPIUM	110,405	3,614	106,791	2954.97%	150,000	35,691	110,405	100.00%
OCEAN	2,925,709	119,661	2,806,049	2345.00%	2,750,000	141,096	164,678	5.63%
EDEN	4,801,701	298,820	4,502,881	1506.89%	2,000,000	44,346	433,070	9.02%
GRT	1,901,014	126,222	1,774,793	1406.09%	1,000,000	516,585	1,901,014	100.00%
SNX	341,397	34,993	306,404	875.62%	9,000,000	1,747,272	341,397	100.00%
EWTB	3,413	399	3,014	755.97%	20,000	0	0	0.00%
BMI	136,855	16,630	120,225	722.92%	500,000	0	0	0.00%
ARCONA	2,121,530	353,004	1,768,527	500.99%	1,000,000	397,867	2,121,530	100.00%

The next 10 tokens are sorted by surplus percent and by my own calculations in total we should see a reduction of about 3 million BNT if these pools are disabled. This is by no means a small amount and any reduction in the BNT supply should be celebrated even if it is as small as 1 BNT.

I will be bringing up individual proposals for the Bancor DAO to vote on setting the funding limit to 0 for these token pools. I would like to thank the entire Bancor community for the support that I have receive on my proposals.

[mbr]

Excerpt from the thread I posted just now to the community chat:

@mbr

Moving surplus tokens to Carbon and creating a protocol-owned strategy

The proposals by alphavalion generalise the purpose of this protocol-owned liquidity (POL) by introducing an intermediate step; the surplus tokens are first moved to Carbon and destined for inclusion in a “protocol-owned strategy”, which through fee generation also directly translates to BNT recapture and destruction. As an aside, the increased liquidity levels in Carbon ought to help maintain persistent volumes and assist with the adoption of the new product.

However, several issues have been raised that represent an insurmountable obstacle to implementing the protocol-owned strategies as initially envisioned by alphavalion. While a rebuttal was provided, it suggests a fundamental misunderstanding by the original author regarding the feasibility of what is being proposed. The only satisfactory process must be one where there are a set of functions that can be called by literally anyone, which facilitate the exchange of tokens into the desired pair, and the creation of a strategy with unambiguous settings. This is the decentralization requirement which, for example, would prohibit the use of a generic token tracker and entrusting an individual with correctly interpreting it, and maintaining the strategy on chain in accordance with the DAO’s guidelines, as suggested in the proposal. To create a system of smart contracts to achieve what is proposed, in terms of regularly updating the strategy conditions in accordance with a TWAP, is similarly untenable.

Consolidation:

As ongoing strategy management is untenable, this proposal suggests that a generic stablecoin strategy be adopted which can exist in perpetuity without changing its parameters.

[alphavalion]

Another round of voting has concluded and it seems like all 10 pools will be disabled per the Bancor DAO votes.

It is time for the Bancor DAO to consider the next 10 set of tokens to have their funding limit set to 0 and therefore any BNT trading liquidity burned.

Symbol	Master Vault Balance (TKN)	Staked Balance (TKN)	Surplus/Deficit (TKN)	Surplus/Deficit	BNT Funding Limit	BNT Trading Liquidity	TKN Trading Liquidity
RARI	4,322	853	3,470	406.92%	250,000	13,051	4,322
SATA	444,383	101,018	343,364	339.90%	100,000	12,389	444,383
RNB	1,034,107	316,640	717,467	226.59%	200,000	20,549	713,433
FARM	3	1	2	209.73%	637,223	0	0
REN	7,202,348	2,421,997	4,780,351	197.37%	3,000,000	1,063,431	7,202,348
ACRE	41,862,152	16,694,459	25,167,693	150.75%	100,000	26,599	33,258,331
LPL	133,584	56,699	76,885	135.60%	500,000	55,444	133,584
DAPP	168,703,054	81,250,744	87,452,310	107.63%	500,000	232,693	168,703,054
GTC	334	164	170	103.81%	200,000	0	0
INDEX	3,159	1,812	1,347	74.38%	200,000	10,634	3,159

The next 10 tokens are sorted by surplus percent and by my own calculations in total we should see a reduction of about 1.5 million BNT if these pools are disabled. This is by no means a small amount and any reduction in the BNT supply should be celebrated even if it is as small as 1 BNT.

I will be bringing up individual proposals for the Bancor DAO to vote on setting the funding limit to 0 for these token pools. I would like to thank the entire Bancor community for the support that I have receive on my proposals.

[alphavalion]

Another round of voting has concluded and it seems like all 10 pools will be disabled per the Bancor DAO votes.

It is time for the Bancor DAO to consider the next 10 set of tokens to have their funding limit set to 0 and therefore any BNT trading liquidity burned.

This time vBNT is on the list of tokens in surplus but I suspect that this pool is important for the DAO. I will be skipping this token at the moment as there is some other discussion from the past here

System to begin phase out of vBNT

Continuing the discussion from Proposing Carbon: I’d like to voice my concern about the order of operations of removing Vortex burning of vBNT BEFORE we have a system in place to cleanly and quickly phase vBNT out of the ecosystem. It seems the intent is to simplify the Staking/LP process by removing v2.1/v3 and the complexities of bnBNT as well as vBNT itself. I have a few ideas on how we can quickly and easily complete this process. Summary: Shutdown Staking of BNT into v2.1 and v3 pr…

Symbol	Master Vault Balance (TKN)	Staked Balance (TKN)	Surplus/Deficit (TKN)	Surplus/Deficit	BNT Funding Limit	BNT Trading Liquidity	TKN Trading Liquidity
MFG	66,365,843	40,475,188	25,890,655	63.97%	400,000	191,316	54,697,111
SHIBGF	16,287,968,115,273	10,770,248,226,083	5,517,719,889,190	51.23%	30,000	12,927	16,287,968,115,273
XSUSHI	7,064	5,035	2,028	40.29%	200,000	13,659	6,405
COT	54,165,032	40,293,093	13,871,939	34.43%	20,000	0	0
PERP	368	282	86	30.68%	20,000	0	0
AMP	3,640,238	3,299,611	340,627	10.32%	2,000,000	20,607	3,640,238
CROWN	27,735,976	25,780,014	1,955,962	7.59%	200,000	55,480	2,718,934
BBS	2,726,478	2,673,044	53,434	2.00%	102,612	93,813	2,726,478
BORING	44,868,006	44,009,083	858,923	1.95%	200,000	118,789	19,126,524
1INCH	2,072	2,044	28	1.38%	200,000	0	0

The next 10 tokens are sorted by surplus percent and by my own calculations in total we should see a reduction of about 500k BNT if these pools are disabled. This is by no means a small amount and any reduction in the BNT supply should be celebrated even if it is as small as 1 BNT.

I will be bringing up individual proposals for the Bancor DAO to vote on setting the funding limit to 0 for these token pools. I would like to thank the entire Bancor community for the support that I have receive on my proposals.

[alphavalion]

@foxsteven

I have a very outdated spreadsheet that I downloaded from the analytics bancor website some weeks ago. The website is no longer working anymore. Can you provide an updated spreadsheet for v3 with these columns?

Symbol
Master Vault Balance (TKN)
Staked Balance (TKN)
Surplus/Deficit (TKN)
Surplus/Deficit %
BNT Funding Limit
BNT Trading Liquidity
TKN Trading Liquidity

[foxsteven]

Here is a Dune you can use.

https://dune.com/queries/2658013

Note that Dune does not update in real time - But does update multiple times per day.

Please let me know if there is data that you need that is not included here.

[alphavalion]

foxsteven can a column be made available that indicates if a pool has trading enabled or disabled?

[foxsteven]

Sure, can do that soon

[NIX]

Update includes trading enabled and BNT Funding
https://dune.com/Bancor/bancor3-surplus-deficit

[alphavalion]

foxsteven nix

My basic understanding is that v2.1 has pools and each LP has a different surplus or deficit profile. Is it possible for a pool in v2.1 to be in surplus if all LPs in that pool are in surplus? Can the DAO then start to disable those pools in v2.1?

Can a spreadsheet be made available to the DAO about the entire v2.1 protocol and its pools to show the per pool surplus/deficit?

If I am seeing https://dune.com/Bancor/bancor_1 correctly, there is close to 60m in tokens staked in v2.1.

[yudi]

hey @alphavalion it’s not practically possible to disable v2.1 pools as they have their own owner which isn’t the DAO.
I think for v2.1 the DAO made as much as possible, so I wouldn’t make any changes there.
With time these pools will shrink.

[alphavalion]

The spreadsheet with v2.1 information should still be made available to the DAO so that we have an idea of the situation there. A list of all pools, surplus and deficit numbers, LP status in those pools, BNT liquidity per pool.

If the DAO finds that MANY pools in v2.1 are in surplus because all LPs are in surplus then this information should be sent to all channels to let LPs know to leave. Any BNT that can be burned from LPs leaving v2.1 is a benefit towards BNT supply reduction.

In the past we migrated v2.1 surplus to v3 as a onetime operation. How does the DAO know if there isn’t more surplus in v2.1 that can be migrated to v3 via a similar operation?

[yudi]

Even if there’s surplus in v2.1 pools, it can become a deficit tomorrow - it’s not like v3 that the DAO can simply disable trading on a pool once a pool is in surplus.
I don’t think it’s wise to wait for a surplus, migrate to v3 and then the next day there’s a deficit.
Any excessive surplus the pools had in the past was migrated to v3 and it was complicated enough back then, I’m personally against.

Nick can share a status report just as back then, I’ll ask him.

[alphavalion]

@yudi

I don’t think it’s wise to wait for a surplus, migrate to v3 and then the next day there’s a deficit.

If the DAO can’t disable a pool in v2.1 once it is in surplus then the more important it is for the community to notify LPs about v2.1 pools that are in surplus so that they can withdraw their tokens. LPs positions can always go into deficit otherwise in the future depending on the BNT price and performance.

@yudi

Nick can share a status report just as back then, I’ll ask him.

thank you

[NIX]

Hey, see attached for the updated snapshot. The TKN available on v2 must be both protocol owned liquidity (POL) and also in surplus - as before - so the TKN Available column is the min of these two.
Looks that there is only ~$100k there, so its not really clear if this is worth the hassle

20230718 - v2 POL Surplus