Bancor

This proposal is expected to appear on Snapshot for voting on [date=2022-07-31 time=15:00:00 timezone=“UTC”]. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TLDR :

• The LPL-BNT pool is currently the deepest pool, with it beating the UNI based pool by almost x10. This basically makes us the prime provider for LPL
• Current swap fee is on UNI is also 1%, while having more than 10x less TVL than Bancor atm. Thus it should definitely not be strange to increase the current swap fee
• An increased swap fee will help us siphon more profits from arbitrage trades and us being the prime provider, LPL trades will always flow through Bancor

Figure 1 - Current information for the LPL pool on B3:

There are currently two pools besides Bancor on Uni V3 and V2, with 16.71k & 9.7k liquidity, respectively. As seen in Figure 4 a swap of 5 ETH to LPL currently has a 34.35% impact on UNI V3 and a 4.85% impact on Bancor. This confirms again that Bancor can provide the best price for LPL traders and thus set an increased fee on our pools without the risk of being undercut by the competition.

I propose the following schedule for the gradual increase in the trading fee:

1. 1 to 3%
2. 3 to 5%
3. 5 to 3%
4. 3 to 1%
5. Evaluation of all %, and final decision on what to do.

All steps will be performed weekly with the last week gathering all the data and analyzing the results.

Vote FOR to have the Trading Fee be changed according to the proposed schedule Vote AGAINST to keep the Trading Fee at 1%

Figure 2 – Weekly volume for the BNT-LPL pool (B3 only)

Figure 3 – Weekly fees for the BNT-LPL pool (B3 only)

Figure 4 – Comparison between 5 ETH swap on UNI V3 (Left) and Bancor (Right)