Proposal: Whitelist ENS with 50k BNT co-investment

Proposal to Whitelist Ethereum Name Service Token (ENS)

For this proposal to pass, it requires 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on 2021-11-14T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

  • Proposal to whitelist ENS.
  • Co-investment of 50,000 BNT.
  • There are no security concerns that could prohibit whitelist status.
  • There is no reason to doubt the legitimacy of the Ethereum Name Service project. The project is a Blockchain household name and has received support from the Ethereum Foundation, Binance X, Chainlink, Ethereum Classic Labs, and Protocol Labs.
  • The token was launched on the 8th of November of 2021 and therefore poses an impermanent loss protection risk as volatility is expected to be higher than other established tokens.
  • The benefit to Bancor is clear. Providing ENS liquidity will attract token LPs from the Ethereum Name Service community to swap on Bancor, and increase protocol trade volume.
  • The ENS token has been trending, ranking 13th on Coinmarketcap by volume from the top 200 tokens by Market Capitalization. Driving this volume to Bancor is definitely beneficial for a small IL risk from the 50k BNT co-investment.

Token Address: 0xc18360217d8f7ab5e7c516566761ea12ce7f9d72

Project Website: Ethereum Name Service

Liquidity

The Deepest ENS pools are:

The ENS/ETH 1% Uniswap v3 pool with $29.57m liquidity, $62.93m daily volume, and an extrapolated APR from the 24hr fees of 7.78% [1].

The ENS/ETH 0.3% Uniswap v3 pool with $20.26m liquidity, $176.22m daily volume, and an extrapolated APR from the 24hr fees of 9.52% [2].

The WETH-ENS SushiSwap pool with $6,541,206.18 liquidity, $65,574,864.51 daily volume, and an extrapolated APR from the 24hr fees of 10.97% [3].

A co-investment of 50,000BNT opens up space for at least $471k of liquidity in the pool, with BNT at $4.71.

Token Security

ENS does not have an elastic supply, or rebase mechanism. The ENS token has a max supply cap of 100,000,000 ENS. Contracts are standard ERC-20 OpenZeppelin contracts, with the addition of voting capabilities and other customisations detailed below. The contracts don’t have any permissions that grant administrators unrestricted mint/burn capabilities. From the contract:

@dev An ERC20 token for ENS.
Besides the addition of voting capabilities, we make a couple of customisations:

  • Airdrop claim functionality via claimTokens. At creation time the tokens that
  • Should be available for the airdrop are transferred to the token contract address;
  • Airdrop claims are made from this balance.
  • Support for the owner (the DAO) to mint new tokens, at up to 2% PA.

The top 15 contract and addresses with the highest concentration of ENS are the token, token lock and timelock contracts, Binance, OKEx, Uniswap pools, team wallets, FTT, KuCoin and 3 wallets with 0.1240%, 0.1115% and 0.1092% of supply.


Figure 1 - Top 15 contract and address with the highest concentration of ENS [4]

Project

The Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the Ethereum blockchain.

ENS’s job is to map human-readable names like ‘alice.eth’ to machine-readable identifiers such as Ethereum addresses, other cryptocurrency addresses, content hashes, and metadata. ENS also supports ‘reverse resolution’, making it possible to associate metadata such as canonical names or interface descriptions with Ethereum addresses.

ENS has similar goals to DNS, the Internet’s Domain Name Service, but has significantly different architecture due to the capabilities and constraints provided by the Ethereum blockchain. Like DNS, ENS operates on a system of dot-separated hierarchical names called domains, with the owner of a domain having full control over subdomains.

Tokenomics

The ENS is the governance token of the Ethereum Name Service project.

The core components of ENS are decentralized and self-running (e.g., no one can take away another person’s .ETH name), but there are a few things that require some human discretion.

In its first act as a DAO, $ENS token holders will vote to formally request from the ENS root keyholders the ability to:

  • Govern protocol parameters, like pricing, the price oracle, and more
  • Gontrol funds from the existing community treasury, as well as receive future revenue.

More information on the ENS airdrop can be found here.

Community and Communication

Ethereum Name Service is active on Discord. The Ethereum Name Service team also operates official Twitter , Mirror accounts.

Available Audits

Ethereum Name Service has been audited by Consensys.

Market and Trading Data

  • ENS’s price at the time of writing is $59.71.
  • All-time high: $83.40 (11th Nov, 2021).
  • All-time low: $17.63 (9th Nov, 2021).
  • Price 90 days ago: N/A.
  • 17,419,530 ENS in circulation, with a maximum supply of 100,000,000 ENS.
  • The current market capitalization is $1,043,055,935.
  • The ENS token is available on, among others, Uniswap, Sushiswap, Binance, OKEx, FTX, Kucoin.

[1] Uniswap Info
[2] Uniswap Info
[3] https://analytics.sushi.com/pairs/0xa1181481beb2dc5de0daf2c85392d81c704bf75d
[4] $44.71 | Ethereum Name Service (ENS) Token Tracker | Etherscan

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