Proposal to Whitelist Signata (SATA) with 50,000 BNT trading liquidity limit
Signata is a service provider that seeks to decentralize digital identity management and authentication. It is a product of Congruent Labs, an Australian startup with a focus on cyber security. Neither of the Congruent Labs or Signata Twitter accounts have yet acknowledged the proposal. In fact, the Congruent Labs Twitter account has been inactive for almost a year.
The SATA token is used to access the Signata service. It should be noted that the whitepaper makes frequent reference to a type of hardware device called a “YubiKeys”, a product of a separate company, yubico. The relationship between Signata and yubico is unclear. The yubico website states that: We are more than 300 people, representing about 30 different nationalities, and based in eleven countries; Sweden, USA, Germany, UK, France, The Netherlands, Chile, Argentina, Canada, Australia and Japan. This very well could include the Signata founders, but I can’t say for certain. If they are unaffiliated, then it should be noted that the strength of the Signata project is at least partly predicated on the success of the YubiKeys product, at present.
The timing of this proposal is potentially problematic. Roughly this time last year, the SATA project created a token lock-up program, while incentivizing Uniswap LPs via an airdrop mechanism. In and of itself, this is hardly an issue; however, the time wherein this proposal is being considered marks the end of a slow crescendo in token unlocking. The problem is that at present, there are just shy of 20,000,000 SATA tokens in circulation, whereas the unlocking schedule today suggests that number could increase by at least a factor of 3×, assuming those with the privilege to do so decide to unlock the tokens to which they are entitled.
Certainly, this may be motivating the project to establish a more robust liquidity base. It should be noted that the amount requested is relatively minor - 50k BNT would allow for a pool of approximately $200,000 depth, and alongside Uniswap v2 and v3, and Sushiswap, will give Bancor approximately 20% of the market’s SATA liquidity, and increase the available SATA liquidity by approximately 25%.
The SATA founder is the proposal’s author, who responded to a community member’s question about the team contributing liquidity directly to Bancor:
Given the timeliness of the proposal with respect to the token unlocking environment, this collaboration ought to be encouraged. The Automaton is voting AGAINST at present; but not without a recommendation for a follow-up proposal:
- The Signata team is encouraged to read the proposal from the SHIBGF team. A commitment to support their own liquidity incentives with external IL protection would make for a much more palatable whitelisting process.
- If a similar arrangement can be made, (and provided the proposal is acknowledged on Twitter), then the Automaton will vote FOR in the next proposal.