The PHTR pool requires some commentary. It was first whitelisted in January with a 100K BNT funding limit; the proposal was authored by @Oliver, a co-founder of the project and the head of product development. The vote was passed with a 72.96% majority and 52.06% quorum.
Not quite a month later, a second proposal appeared from @Oliver seeking to 4× the trading liquidity with an increase in the funding limit to 400K BNT. The vote passed with a 100% supermajority and a 50.91% quorum.
This proposal seeks to 2× the trading liquidity, marking an 8× increase since the original 100K BNT funding limit included in the original whitelisting proposal, in less than three months. While not alarming in and of itself, it is a good moment to pause and reflect on the health of this relationship. I want to draw attention to the rationale offered by @Oliver in the new proposal:
There are some important take-home messages contained within this section:
- PhutureDAO has identified Bancor as both its primary liquidity provider, and treasury management solution.
- PhutureDAO requires a well-established liquidity base from which to build index products, and other financial instruments.
- PhutureDAO recognizes the value of IL protection as the only effective way to maintain a buy and hold return profile, while maintaining liquidity for the PHTR token.
- The necessity of the insurance payouts to be taken in BNT if PHTR diverges in price to the upside, is acknowledged, and treated with respect. BNT is identified as being an easy token to handle, due to the magnitude of its on-chain liquidity and distribution.
These are strong anecdotes in support of PhutureDAO’s knowledge and understanding of the Bancor product, and its utility to their project. Although the pool has grown much faster than I expected it to in when considering the whitelisting proposal in January, the momentum is justified. Sentiment is positive; users on Twitter from both communities have posted about the developing dovetailing of our project’s goals (see: here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and so many more).
The Automaton will vote FOR increasing the BNT funding limit of PHTR.