Hello, as some of you may have noticed a great majority of the volume in bancor comes from the top pools. These pools are ETH, BTC, USDC, USDT, DAI, and LINK. I propose we increment the length of time for rewards in these pools since they generate the biggest amount of volume for the protocol and therefore the most profit. Additionally, I think something similar to the permanent rewards category in sushiswap would be good for establishing a more permanent liquidity in what I would call “blue chips” or “majors”.
I also think it would be beneficial to have longer extensions on the major pools, or at the very least there should be more open discussions about what lies ahead.
In the last LM rewards extension thread, Michal mentioned that the rewards program would have to be “rewritten and adjusted” after the implementation of an innovation solution (presumably Vortex). Rewards expire in 2 weeks and it’s unclear what the next step is. Bancor is designed to incentivizes long-term liquidity, but many LPs could be turned off by the short-term reward design. It’s hard to imagine that people would supply liquidity to a pool with rewards expiring in 14 days if the full multiplier can’t be earned until 28 days (especially with gas prices lately, though hopefully L2 solves that).
Over the last few days I’ve seen many questions on Discord and Telegram asking about rewards expiration, and I have to imagine that there are tons of other users that close out of the staking page when they see the current expiration. Any type of assurance of longer-term rewards would attract more liquidity and be great for marketing. The plan is to offer LM rewards for 72 weeks, but I’m sure the majority of users think it’s much less when they visit the site!
I tend to agree. However it could be a good idea to make the LM rewards go down over time. As the network grows, the bnt price should go up along with the trading fees. Hence the trading fees might become more dominant with the increase in volume, which could be compensated by a reduction in LM rewards over time. A 10% reduction of LM rewards every month would work. that way, there won’t be a sudden drop in apy from 40% to 5% as might be the case without any extension. This sudden drop could lead to a big amount of liquidity leaving bancor, which isn’t beneficial for the protocol. Don’t forget what got us to 1b liquidity in such a short amount of time. LM works, Don’t change the winning team. The clock is ticking, we don’t want to let it go down to 0
Let’s get this proposed and voted on, or at least a stopgap extension in the form of a continuing resolution ASAP
I agree with this, all thats needed is to keep rewards more competitive than other ecosystems like sushi
Don’t think we should keep the 70/30 ratio for stable pools if an extension is put up for vote. 80/20 or 70/20 with10% for vBNT burn. 30% on stable side is too much that’s why these pools are always full.
Sure I’m good with lowering it but gotta keep in mind these 5 pools make up around 75% of all the volume and liquidity getting lower in the pairs would result in lower volume since a lot of trades come from routers, correct me if im wrong.
ETH, WBTC, Stable and the huge link pool are very important to Bancor. The problem with the stablecoin pools … IL is actually permanent loss for Bancor if the BNT price keep going up, hence the suggestion with lowering the TKN side.
Hopefully more of a permanent proposal or at least a 100 days+ extension rather than the mini 30days.
I agree with the extension of these pools and of course making them longer than 30 days.
Seen enough people worry on forums on when these rewards will end ( I think only we extensively invested in the project know that they’ll be extended anyway).
I would like to have a clear distinction on which pools we’ll extend and which not. The below pools should defintely be extended as they provide our biggest volume and will key in making Bancor the defacto dex.
I don’t necessarily agree with extending the RenBTC pool and Ocean Pool though.
They have far too little volume to make the extension worthwhile in my opinion.
Thus I would like a proposal that excludes those two.
If people from the Ocean and/or RenBTC community want to extend these pools, they can of course open a different proposal.
I agree aswell i don’t see a reason to extend renbtc or ocean