REN LM Extension

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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Thanks for the reply. There is already a trader incentive program that is being worked on (In addition to a new UX):

  • Trader Incentives and UX: A trader-centric user experience is being developed for the explicit purpose of increasing Bancor’s volume share, and profitability for liquidity providers. The new UX will coincide with the launch of a limited trading incentives program to encourage the DeFi community to use Bancor’s new swap features.

and should hopefully be released soon. That should help incentivize users to swap using Bancor as opposed to another DEX. I think since the release we have been largely focused on bootstrapping liquidity as compared to improving the trader experience (which has taken a back seat). Every indication suggest that things are changing (e.g. fiat on ramp) to put more focus on users as well.

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Thank you Glenn! This was a very interesting and positive read!

I’m a little confused why REN is being compared to the OCEAN case? REN was one of the top performers until very recently in terms of fee APY, doing much better than OCEAN until their recent campaign. Furthermore, there was no space at all on the REN side for staking, showing a demand from REN holders to lock their tokens in Bancor. I think if we let REN expire despite it being a strong performer for the majority of its time in the LM rewards program, it might further incentivize people to move their assets to the main blue chips since LM is likely to be extended indefinitely for those, as people won’t want to stake in a mid cap token, even if it was performing well, if the LM won’t be extended.

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I think REN and OCEAN are being compared because they are both asking for an extension to LM. One way to interpret the community response is: “What are my incentives to extend LM on your pool?” (asking nicely - not meaning to sound abrasive).

The OCEAN wager provides a helpful precedent for incentivizing the token communities who are seeking LM extensions, to promote their pool on Bancor. Or, at the very least, to provide an evidence-based argument for why LM extension is in the BancorDAO’s best interest.

Summary: If you want LM to be extended, make a case for it. You can’t just take LM for granted - the DAO should be presented with a clear line of reasoning for extending it a second time. (Remember - it was already extended once).

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Guys the rewards are ending. I think its time to put this to a vote and let shareholders decide. I would propose doing 50% of the previous rewards and lets see if the Bancor community wants it or not. It doesnt hurt to try and time is running out.

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I had a call with the REN team a couple of days ago.

We are thinking of adding all the REN tokens together for a whitelist proposal, and then letting the DAO choose LM on each one, including REN itself.

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do u have any update on this?

many thanks in advance :slight_smile:

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Hey guys. With RenDoge gaining momentum and ren assets increasing in usage on BSC, I think we should put this to a vote. I see other tokens with only slightly more liquidity are getting the green light, so Ren, an OG coin for rewards should get it as well. Can someone please propose it and let the votes decide?

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Someone needs to write it up. We don’t yet have a submission-ready proposal.

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Can someone with governance experience use my post below, filled in with snapshot date/time and any other info? Im not technically savvy enough to propose it in full, but I used the AAVE post that got a great response to formulate this one. Again ren being higher in transaction volume than so many other LM earning tokens, along with prospects of a suite of RenX tokens (renDoge, renBCH, renBNB, and soon renSol and renFTM) make this something that should be strongly considered.

This proposal is due to appear on Snapshot on XXXXXXXXX. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

  • Extend previously approved LM rewards on the REN pool for a further 12 weeks.
  • REN has attracted a liquidity pool of over $25m at the time of writing, while being amongst the top 12-13 in transaction volume on Bancor.

Voting Instructions

Discussion

-REN has attracted over $25,000,000 of liquidity in the REN/BNT pool.

-The REN pool currently has more transaction volume than 6 of the other tokens currently earning LM rewards, indicating it is a major asset for BNT stakers.

-Ren offers a suite of tokens that can be bridged in a decentralized manner such as renDOGE, renZEC, etc. And soon there will also be renSOL and renFTM. It is my contention that unifying the Ren and Bancor ecosystem presents truly interesting prospects as both projects continued their growth and innovation.

I propose continue the current LM rewards for another 12 weeks to keep liquidity on Bancor and attempt to encourage more deposits.

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Unbelievable how close this was to passing, can we resubmit?

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