Proposal: Whitelist WETH with 2M BNT Co-Investment Limit

This proposal is expected to appear on Snapshot for voting on 2021-09-12T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

  • Proposal to whitelist WETH.
  • Proposed co-investment is 2M BNT.
  • There are no apparent security concerns that would prohibit whitelist status.
  • WETH is wrapped ETH and is the native token of the blockchain that we operate on (Ethereum).

Token Address: 0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2

Project Website: weth.io

Token Security

The token conforms to the ERC-20 standard and inherits the underlying security of the ETH token. Since ETH is already whitelisted on Bancor and this being wrapped ETH then our security requirements should be met.

Note that most of the liquidity for WETH resides on other DeFi protocols which are using it natively.

Project

ETH doesn’t conform to the ERC-20 standard and was released before it existed. In order for DAPPs to be able to use ETH, they have to interact with a representation of ETH that is compatible with the ERC-20 token standard. Most DAPPs opt to use wETH as their base token for their pools for this specific reason. There are steps being taken to make ETH conformant to the ERC-20 token standard in the future.

Tokenomics

Ether is used to pay gas fees on every transaction. Once migrated to Eth2, validators will stake the tokens to participate in consensus and receive block rewards.

With the Beacon Chain in production, users can deposit their ETH into the Deposit Contract to claim a validator slot on the Ethereum 2.0 network. Validators have the right to stake ETH on the Beacon Chain to participate in block production and earn staking rewards.

Community and Communication

Ethereum operates similarly to Bitcoin through off-chain, informal governance. In this model, developers can submit protocol upgrades, dubbed Ethereum Improvement Proposals (EIPs), on Ethereum’s open-source GitHub repository. Core Ethereum developers then discuss new proposals, with additional input from the extended community. If approved by a majority vote, core developers merge the changes into the base code. To avoid complications post-merge, node operators must update their clients to the latest software.

Available Audits

The Ethereum 2.0 Prysm client was audited by Quantstamp.

Market and Trading Data

  • WETH price at the time of writing is $3333
  • All-time high: $4,327.08 (May 12, 2021)
  • All-time low: $94.87 (Mar 13, 2020)
  • Price 90 days ago: $2554
  • N/A tokens in circulation
  • N/A maximum supply.
  • The current market capitalization is N/A
  • Token Fully Diluted market Capitalization is around N/A
  • WETH is available on many different DEXes and can also be wrapped by anyone.
  • The highest 24-hour spot volume on DEXes is $225M on Sushiswap.
2 Likes

More trades, more liquidity - without any risks right?

I’m for it.

1 Like

all for this, would be cool if we could also get the wrap function intergrated into the swap like in uni:

1 Like

the new beta.bancor.network application already support WETH->ETH unwrapping

2 Likes