Reducing the % bnt is actually a good idea as it causes less space to be opened on the stablecoin side, hence keeping a healthy balance between stablecoin liquidity and loss taken by the protocol. One thing to point out is that, when crypto/usd rates rise, we might need more liquidity in the stablecoin pools to avoid too much slippage. (As trades will become larger usd-wise) I’m convinced this will be solved by the new proposal for stablecoin pools, and am excited to hear about the idea. Either way LM for stablecoins is necessary to keep enough liquidity in the pools, and this proposal seems to be aiming for a temporary fix till a better solution is found. Bringing LM rewards to 0 will cause those pools to run dry, and we definitely need that liquidity to keep bancor an all-around amm. Hence I fully support this proposal, till we have a better solution for stablecoins
You are 100% correct. The new pool design will take care of this. Announcement coming soon (I hope).
I’d also like to know where stablecoin LP’s are going to take their liquidity and get >40% in an audited and battle-tested contract. I’m guessing nowhere
Just to be clear, are you saying there would be 0 negative consequences to the stablecoin pools in an extreme scenario in which 100% of user-supplied BNT is withdrawn because coinvestment would make up for lost liquidity (assuming they re-stake BNT in a different pool)?
If that’s true then I could support this proposal. Intuitively I would expect this proposal to hurt liquidity and make it harder to get low-slippage trades, but if that’s not the case then this becomes a lot easier to stomach.
As someone with a shit ton of money in the USDC pool, I am not thrilled about the reduction but am going to put my trust in the bigger econ brains in this community and vote FOR this proposal.
I agree with what’s been stated before regarding competitiveness to other stable coin yields in the market. As long as we’re still beating most platforms in APY we should be able to retain most of the liquidity.
Could this proposal be revised to reduce the APY yields on the stablecoin side only? It is unfair that BNT staked in these pools are majorly affected by this.
Just to clarify. I have all my BNT in stable pools. Will all multipliers be lost when I want to move it over to the extended 100% link pool? There is no point hanging around in the stable pool with my BNT for half rewards if my neighbours in the eth, link pools are still getting full whack. Feel a bit punished tbf. As though I chose the wrong pool.
Not to sound rude, but the rewards time periods are clearly outlined in the pools. we’ve known that the rewards were going to end regardless. this proposal is extending the LM rewards knowing the stable pools have a net negative effect in the ecosystem. I do however sympathize with wanting to move ur bnt around from pool to pool and maybe there could be something built-in to the protocol similar to how re-delegation works in the cosmos ecosystem, where re-delegation between different nodes has no negative impact on the delegator.
Thanks for the reply. I understand the reasoning for the 50% cut and can see how it will benefit the ecosystem. My main reason for switching pools is obviously rewards orientated. Its like half the class have been given a great prize and the other half have been given a not so great prize.
Has there been any updates on when the extension for LM will be applied to these pools? I noticed that the rewards for the LINK/BNT pool had ended.
It’s done! It never ended; there may have been a delay on the front end or something.
What will you propose at the end of the current cycle? Napkin math tells me that it still makes more sense even at half rewards to go into stablecoins because percentage of the rewards is still greater compared to the large cap pools, unless I am missing something.
It seems like this is live already but the APR on stablecoin pools doesn’t appear to be reflecting this change yet. Is this because we forgot to update something on the Bancor side?