REN LM Extension

Hey Guys,

the REN LM will end in about 9d.
I guess I don’t have to explain much how big REN and the RenVM is implemented in the crypto space!?!

It is THE BRIDGE when it comes to transfering BTC to Ethereum. Soon there will be Polkadot and BSC as well.

In the last 30d there has been a whopping ~790M USD bridged thru the RenVM.

The REN Token is required to run a DARKNODE which kind of generates passive income like with being LP! In this case u get mostly paid in BTC and the other assets which are supported.
In the last epoche cycle these REN Darknode “LPs” earned about 1,7M in fees.

Most people don´t realize how profitable that business model is!

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So I am wondering if there is enough interest to extend this for another 30d?

Looking forward to hear comments.

Best,
S.

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I am with you 100%. One correction is the BSC bridge is already live. It was one of the first tokens to get the LP reward treatment and I am one of many who upon the offering of the rewards deregistered half my darknodes to put them on Bancor.

It has solid trade volume, more than Wnxm, Rook, Aave, SNX, and even UNI. Being among the top 15 or so in volume to me shows that it should get continued rewards.

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100% agree with the importance of Ren.
With Uni and other dex’s encouraging LP’s to leave, I think ending the rewards isn’t a strong move.

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Hi,

I would support this proposal.

Just this morning I read a newsletter article written by Bankless Nation over REN’s ‘Trillion Dollar Opportunity’. They are far more more articulate than me at explaining the current and potential future of this protocol and I post a link to their article here: Ren's Trillion Dollar Opportunity - Bankless

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It is indeed a huge project! I am not sure why most not understand it correctly especially the darknode rewards…

so can u create a proposal? I never did before and i am not sure how to do that!?

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ok lets do it! have u created a proposal before?

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ok nice! Lets get this done :slight_smile:

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lol… Would love to but I am also completely new to this too…

I haven’t yet received any BNT rewards and my trial stake isn’t worth the fees to unstake at the moment - I think I need BNT to vote? I supose I could purchase directly, but the ETH fees are obiously an issue for smaller holders like myself. If that’s what it takes to vote though, I’d be happy to see the cost and decide then.

There was some talk in the Telegram channel about lack of interest to extend rewards for REN - I don’t understand why not (I can only imagine because there is not yet enough volume on Bancor).

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I’m looking for a guide to see how this is done (create proposal, vote etc.).

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ok no worries! I will check that as well

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Very keen for this, too. Given the (current) absence of a mechanism allowing those holding fewer than the 100k REN tokens required to run a darknode to participate in the REN network, Bancor really should be the first place those individuals turn to put their REN to work. Hopefully, an LM extension can convince those holders to lock up their REN!

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@Steviii_S take a look at the discussion in the Bancor Liquidity Providers Telegram group.

The team and community are helpful and, along with the messages here, there does seem to be some real interest to extend the rewards.

We need to create a proposal though (I think in the “Liquidity Minding Votes” section here) and then this is disussed to go forward to a vote.

Obviously the proposal needs to be well written and put together. I’ve been advised to look at the proposal for OCEAN to use as a base.

It’ll be the first time I write something like this but I’ll work on today/tomorrow and will post back.

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Exactly and I personally deregistered multiple nodes to stake on bancor. Took a while to dereigster and space to open, but finally got in. I just think given Ren was one of the first tokens put in this program and the fact that it has higher trade volume than a lot of other tokens earning rewards, its constantly in the top 10-15, it should get an extension.

And with more space opening more owners of less than 1 node will come over.

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Hi,

With the help and advise from Kasper, I have posted a message in the REN project forum. It could be useful if you chime in and add your support or additional comments too.

See my post on the REN forum here: Bancor / REN collaboration? - General - Ren Forum

Thanks,

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We have roughly 14.8M Ren in the REN/BNT pool which makes us the largest DEX with REN liquidity. Sushiswap and Uniswap account for 10.3M and 3.3M respectively:

that means that we have captured roughly 14.8M/28.4M = 52% of total liquidity. Similar to the Ocean pool, the analysis needs to be done to see whether we are capturing roughly 50% of the DEX trade volume. If that’s not happening and the fees are not covering the LM rewards for this pool, then there is no reason for us to subsidize unprofitable pools.

Also, the value proposition of full IL protection (100% after 100 days) in Bancor as compared to uniswap/sushiswap should still be a differentiator and a good reason for why the REN community should LP in this platform as compared to others.

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thanks! Lets see if there are some fRENs who will support.

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@glenn thank you for your comment. I understand and agree with you.

As you have mentioned too, Bancor has received 52% REN liquidity and that is no small feat. It has taken both the v2.1 upgrade and the Incentive program to achieve that though.

The incentives above bring HODLERs, who get to use Bancor and become familar with the network… hopefully adding more liquidity for other tokens and/or using Bancor for swaps.

The question for me now is what reasons other traders/users have to move on from a DEX they are currently using and accustomed to, to Bancor? Or… even, reasons for new users/traders looking for a DEX to use Bancor?

In this current DeFi enviornment, things like “safety, security, ease of use, cost, gas fees, community” etc. all come to mind immediately.

I think lowered costs with the introduction of Arbitrum should have a big positive impact to bringing over traders, but I understand there is no date yet for this.
I agree too that some interest from the REN team and community could help to advertise Bancor’s offering.

Just an idea that’s come to mind while I write this and I will just mention it here…

As Bancor receive the needed liquidity for a token, if the trade volumes have not increased enough, why don’t the liquidity reward incentives become less for stakers, but incentives introduced for traders in that Pool?

With potential increased income in trading fee payments, stakers offset some of the loss in reward reduction.

It’s already been mentioned that these incentives can not last forever, but perhaps rather than a complete cut-off, a graded decrease for LP’s but increase to traders can occur as trade volumes increase… Until ultimately the incentives complete.

I don’t know if I explain myself correctly, but imagine a ‘see-saw’ with LP’s on one side and traders on the other. Starting with a ‘heavy’ incentive on the LP side, traders slowly balance the see-saw as incentives are passed on to them. This up-and-down continues until they are completely balanced between both sides, at which point, incentives fall away.

I don’t know if this meccanism is useful or even possible, but I thought I’d just mention it.

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Full disclosure I’m in this pool. Clearly I would like it extending.

Putting my BNT hat on this makes sense only if we feel we can expand or entrench our position. Given that we’ve done so well so far I would look at reducing the rewards, maybe halving them to see of we can continue to hold share without giving so much.

I am going to investigate some on-chain data for REN on Bancor. I think this is a good opportunity for the REN community to band together and promote their pool.

The OCEAN community have set a strong precedent for how this could work, and I encourage you to check out their proposal.

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