Proposal to Whitelist arNXM and Armor tokens
Voting objective:
For: add arNXM (500k BNT coinvestment) and Armor (250k BNT coinvestment) to the Bancor whitelisted tokens with only ARMOR and not BNT LM rewards
Against: do not add arNXM and Armor to the Bancor whitelisted tokens
Quorum needed: 40%
The Armor ecosystem: DeFi cover, reimagined.
Project Website: http://armor.fi/
Project Documentation: https://armorfi.gitbook.io/armor/
Armor is a coverage broker for DeFi, that offers “pay as you grow” coverage for smart contract bugs and attacks. All Armor cover is underwritten by Nexus Mutual.
The benefit to the DeFi ecosystem and its users is that Armor cover is:
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permissionless (Nexus requires registration), and
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flexible with regard to coverage amounts and policy duration (“Pay as you Grow”).
Armor coverage is enabled by the arNXM yield vault.
The arCore Smart Cover System tracks the user’s funds and allows cover that is based on the exact holdings, while being billed per second with no cancellation period.
The upcoming arShield product offers LP/Staking cover that is paid directly from the LP/Staking rewards, offering secure staking for liquidity providers without any upfront costs.
Both arCore and arShields will utilize coverage underwritten by Nexus Mutual, and thereby, the arNXM yield vault.
arNXM tokens
arNXM is the yield bearing token for the arNXM vault.
The arNXM Vault accepts the Nexus Mutual wNXM/NXM tokens and puts it to work to produce yield. This is done by unwrapping and staking the wNXM (or NXM) tokens in the Nexus Mutual ecosystem.
Upon deposit of wNXM/NXM, users receive arNXM in return. arNXM can be traded freely, just like wNXM, but it also accrues staking rewards. arNXM produces yield in terms of the underlying token. Holders will arNXM will enjoy:
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Additional yield from staking rewards
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Price exposure to the underlying assets (wNXM/NXM)
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Armor’s coverage for coverage providers’ for minimal risk staking
Armor Tokens
Armor is the governance token. A total of 1 billion ARMOR tokens are being distributed over two years 1: 65% to community members (including liquidity incentives), 35% to early team members with a 2-year vesting period.
The responsibilities for governance include:
- Voting on updates to smart contract code
- Voting on changes to constants used in the fee model (such as premium charge for buyers)
- Voting on the exact time a hack took place
- In addition, the token holders for the ArmorDAO may also vote to be given a share of the revenue made by the arCore Smart Cover and arShield systems.
Armor in numbers.
For detailed stats on Armor.fi (coverage, staking, premiums paid etc.), please visit: https://duneanalytics.com/armor/armorfi
Benefits for Bancor:
Armor Liquidity mining rewards
The token distribution model for ARMOR includes special provisions for kick-starting liquidity on decentralized exchanges. This has already been implemented on 4 popular AMMs and we want to add Bancor to that list. It is anticipated that if this vote passes, Bancor would become one of the largest, if not the largest LP for all arNXM and Armor liquidity pools.
Current AMM liquidity and trading fees
Only a month after launching, the various arNXM pools on Uniswap, SushiSwap, 1Inch and Balancer (pooled with ETH, wBTC & Dai) have already attracted about $30m in liquidity.
Uniswap alone has $6.2m liquidity divided over the different Armor and arNXM pools, with a trading volume of over 1m daily. The total trading volume has been around $2-4m daily, generating significant fees for the liquidity providers.
The price of arNXM is dynamically changing with respect to wNXM (which is already whitelisted on Bancor) based on change in assets under management (because of staking rewards, or during hack payouts, and debt payments). This creates opportunities for arbitrage traders due to an imbalance between arNXM/wNXM prices, which will massively increase volume for both tokens and thereby fees.
16 million Armor in rewards
Armor will offer at least 100K Armor per week in liquidity rewards for the arNXM and Armor pools to start, with 0.51% decrease per week, for a total of over 8m per each pool = 16M Armor over 2 years!
Armor rewards allocation:
70% to arNXM and Armor LPs and 30% to BNT LPs
This means 2.4M Armor tokens will be awarded to BNT LPs and 5.6M will be awarded to Armor LPs over the course of 2 years.
BNT: the DeFi insurance token trading platform
Due to our symbiotic relationship with Nexus Mutual, and the recent success in stimulating growth on the wNXM pool, the addition of arNXM and Armor to the whitelist schedule could position Bancor as the default trading platform for DeFi insurance tokens.
This could be an important niche, and Bancor is uniquely poised to capture it. It is worth noting that the active Armor community - The Armor Knights - are highly motivated to make this vision a reality; many are already BNT holders, and are active participants in our DAO already.
Note: the above has been proposed before recently (proposal #34, 17-20 Feb) and 100% voted in favor. We were unable to reach quorum due to high gas fees. This time, we trust that the Bancor community will help the proposal across the finish line.
Contract Addresses:
arNXM: 0x1337def18c680af1f9f45cbcab6309562975b1dd
Armor: 0x1337def16f9b486faed0293eb623dc8395dfe46a
Available Audits
The Armor smart contracts have been audited by Haechi, and the reports are available for review via the ArmorFi GitHub page: https://github.com/ArmorFi/Audits
Market and Trading Data
arNXM
Market cap = Fully Diluted Market Cap: $18,995,151.23
Circulating Supply: 402,354.40
24 Hour Trading Volume: $482,789
Armor
Market cap: $32,438,255
Fully Diluted Market Cap: $574,803,229
Circulating Supply: 56,433,668
24 Hour Trading Volume: $1,743,243
Exchange Availability
Current top exchanges for arNXM and Armor are Uniswap (V2), Sushiswap, 1inch Exchange, and Balancer.
Information, sources and socials:
Armor ecosystem documentation: https://armorfi.gitbook.io/armor/
Coingecko arNXM: https://www.coingecko.com/en/coins/armor-nxm
Coingecko Armor: https://www.coingecko.com/en/coins/armor
Medium: https://medium.com/armorfi
Twitter: https://twitter.com/armorfi
Telegram: https://t.me/ArmorFi
Discord: https://discord.com/invite/8HuTB22
