Urgent: Permanently Disable Deposits on the Old Reserve Rights (RSR) Token
The Voting Automaton will vote FOR disabling deposits on RSR.
Proposal: Set trading fees to 1% on LPL-BNT pool from current .1%
Following the success of the TRAC fees proposal, the Automaton will now take a more liberal approach to fees governance. Rather than have a concrete voting strategy, it seems sensible to wait for the results of the current fees experiments to conclude before arriving at a new set of guidelines. Therefore, at least for now, the Automaton will vote FOR all changes to fees. Moreover, I will pursue a dedicated channel to discuss results.
The Automaton will vote for the proposed fee change to LPL.
Proposal: Increase trading liquidity on wNXM-BNT pool to 2M BNT
The wNXM pool is among the most consistent revenue generators on Bancor. The Automaton will vote FOR the proposed increase in trading liquidity, and single-sided capacity.
Proposal: Set trading fees to .2% on CEL-BNT pool
As above, the Automaton will vote FOR the proposed fee change on CEL, and will support all proposed fee changes until clarity with regards to fees/volume ratios are established.
Whitelist BBS Token with External IL Protection
The Tweet from the main BBS account has been confirmed. The BBS Twitter account has been proactive leading up to the proposal (see: here, here, here, here, here). BBS is a social content system, similar to Reddit, where potential ad revenue generated from community content is bid on by BBS token holders. The model is designed to create a fair revenue model where the value of the content is realized through the purchase of the ad space it represents. This model is very much aligned with the web3 values and decentralization, and is an interesting use case for cryptocurrency.
The BBS token is relatively new, and not well established yet. Usually this would make it very difficult to whitelist; however, the BBS team has committed to using the Bancor3 external IL protection mechanism with the Bancor3 launch. It may have been better to wait for the external IL function to be available; however, this may be a moot point. The team is providing the BBS tokens themselves, and migration from v2.1 to v3 does not result in IL compensation, should any have accrued. So while it is not the ideal solution, BBS is ready now and wants to use Bancor as its default exchange. So long as we are not expecting the team to withdraw before the Bancor3 launch, and the external IL protection agreement is honored, it really doesn’t make much difference.
The asking trading liquidity is 100K BNT - which is a lot for a new token project. That said, it is not surprising to ask for the “largest small coinvestment”, as the author of the proposal has clearly indicated that they are a mass-market facing product.
The token is a standard erc20, with no apparent security problems. In sum, the proposal feels early, but ultimately the balance is positive. The BBS website, and the BBS market seem to be experiencing some impressive growth. The “Crypo Banter” channel has nearly 20,000 users, and represents a potential accessible demographic for Bancor if we become the default liquidity source for BBS.
The Automaton will vote FOR the whitelisting status of BBS.
Proposal: Whitelist DerivaDAO token (DDX) Plus 100K BNT Trading Liquidity
The Tweet from the main DerivaDAO Twitter handle has been confirmed.
The DDX token is very standard, and its distribution is better than most. Approximately half of the DDX token supply will be used in liquidity incentives. However, there is an enormous allocation (15%) to an unnamed “investor”. This is likely from the early funding round and quickly becoming an inescapable reality for many token projects. This is at least partly offset by the decade-long liquidity incentives campaign established for DDX. The single investor DDX whale aside, everything else is better than average.
The DerivaDAO manages the DerivaDEX, a derivatives exchange protocol on Ethereum. The function of DDX holders is similar to that of vBNT holders - they shoulder the responsibility of managing the exchange, and its unique insurance fund, among other things. Value accrual to the token is achieved via fees and liquidations. Not a novel use case by any measure, but a compelling one nonetheless.
The requested trading liquidity is 100,000 BNT. This is relatively high, considering the low levels of liquidity elsewhere in DeFi. That said, there is nothing especially frightening about DDX. The token supply is going to inflate, but over long periods of time compared to the status quo for DeFi. Its volumes are similarly low - near zero, for the most part.
In short, DDX is not a home-run for Bancor by any measure, but it is attached to a community that understands the challenge of running a decentralized exchange. The requested trading liquidity is high for DDX, but negligible to the protocol overall. The proposal was also raised by its author on the DerivaDAO governance forum; however it did not garner much attention there.
Altogether, the 100K coinvestment is probably a little on the high side, given the volumes and competing liquidity for DDX elsewhere. The Automaton will support its whitelisting, but is unlikely to support any increase in the single-sided capacity until the market warms up to the token.
The Automaton will vote FOR whitelisting of DDX.