Proposal to Use POL to Reduce B3 Deficits
Expected on Snapshot on November 5th, 2023
- This proposal is following discussions in the DAO
- Carbon POL has just under $3M of value at the time of writing
- Data for context: https://dune.com/bancor/bancor3-surplus-deficit
We have about $3M of POL that many in the DAO would like to use. However, there has not yet been significant discussion as to what the goal is.
Potential Goal 1: Reduce the overall B3 deficit. This discussion is here.
Potential Goal 2: Reduce the supply of BNT by using the POL to target 4 specific pools. This discussion is here.
Potential Goal 3: Bootstrap Carbon. This discussion is here.
Potential Goal 4: Save the ETH for a rainy day
I’ve been very honest with my personal perspective.
- I’m very much aligned with potential goal 1.
- I understand the appeal of potential goal 2, but I personally prefer a solution that treats all LPs the same regardless of the TKN they LP with.
- I understand the appeal of goal 3, but trying to manage an active strategy in a decentralized fashion via public functions will not be easy - and this comes with dev time. Also, we may not be able to respond quickly in the case that one of the TKNs held by the strategy has some issue - as our governance takes time.
- Goal 4 is also interesting. Perhaps good things come to those who wait.
Reduce the Overall B3 Deficit with a Modified POL Contract: Related to Goal #1 - Overall Deficit Reduction
(note: the original POL contract is outlined here)
- Create a public function anyone can call that will put 100 ETH up for sale.
- 100 ETH is a DAO controlled parameter
- The initial sell price should be set at two times the BNT/ETH rate on CG.
- This is a DAO controlled parameter
- At the time of writing, the rate is about 1 ETH to 3,000 BNT
- Contract offers to sell ETH at initial sell price
- For example, there are 100 ETH and initial sell per ETH is 6,000 BNT
- Any user can send 600,000 BNT to acquire the ETH
- The price of ETH drops as defined by an exponential decay formula with a 10 day half life.
- Anyone can buy the ETH with BNT at any time.
- These BNT are sent to the token contract
- These parameters can be adjusted by the DAO
- Once a trade ends and there are less than 10 ETH available for sale, the contract is topped up to 100 ETH.
- The new initial sell price will be the price of the last ETH sold x 2
This system was presented with more detail and graphically here. Please note that numbers might not be the same.
Use POL to Reduce B3 Deficits as outlined above
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