Proposing Carbon - DRAFT (DEPRECATED)

[mbr]

@ImshermanentLoss

Re: BIP29. In a recent proposal about adjusting the vortex fee share, we were told that we can’t reduce the vortex to 10% on the DAI pool; “since the vortex is a global parameter, if changed, it affects all pools in the same way”. That means that no individual pool can be adjusted according to its deficit state, and all v2/v3 LPs keep giving virtually all their fees to the protocol, gaining no benefit from remaining as LPs. So if the v2/v3 vortex is superceded by a universal Carbon+v2/v3 vortex, doesn’t that mean there’s even less chance of v2/v3 LPs ever having the fee share adjusted to a beneficial ratio again? So there’ll be even less incentivisation for any existing LPs to remain LPs as soon as their deficit reaches tolerable levels.

It is true that the Vortex contracts use global values - they do not have a per-token setting. However, nothing proposed here affects that limitation. Its not clear (to me) how the burning of BNT directly (instead of vBNT) impacts the liklihood of a future beneficial ratio proposal. Having said that, I would prefer that users do withdraw when their liquidity pools are back in surplus. My only ambition for the past year (feels like a lifetime now) is to recover the state of V2.1 and V3, with the target being that every LP can withdraw everything in entirety. I am not afraid of everyone pulling their liquidity when it is back in surplus. On the contrary - that is the goal.