This proposal is expected to appear on Snapshot for voting on [date=2022-04-03 timezone=“Europe/Lisbon”]. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

• This proposal is part of a series of proposals to extend LM in the wBTC, LINK, ETH, USDC, USDT and DAI pools.
• The LM rewards schedule for ETH is due to end in less than 2 weeks.
• To maintain ETH liquidity until the launch of Bancor 3, this proposal seeks to extend the LM rewards program on the ETH pool for a further 8 weeks or until Bancor 3 is released.
• ETH would continue to receive emissions of 100-200k BNT per week, for an additional 8 weeks or until Bancor 3 is launched.

Discussion

1. ETH is the 2nd deepest pool on Bancor, representing roughly 23% of Bancor v2.1’s TVL.
2. Sustaining liquidity in the ETH pool is essential to maintain the position of the Bancor protocol on the market.
3. The ETH pool brings a significant share of the volume of the ecosystem, and also presents reasonable impermanent loss liability.
4. ETH pool’s weekly volume and fees are shown below in Figures 1 and 2.

Figure 1 - Weekly ETH fees, since the beginning of July.

Figure 2 - Weekly ETH volume, since the beginning of July.

Summary

1. At this stage, current protocol growth requires LM to maintain the liquidity on Bancor v2.1 ahead of Bancor 3 launch.
2. After the Bancor 3 release, the LM rewards in the ETH pool will end until the DAO votes on a proposal to activate them again.
3. A large majority of the LM rewards are re-staked to the protocol, increasing the TVL and the space available for TKN deposits with single sided exposure.
4. Extension of LM rewards on ETH for 8 weeks will provide 800,000 - 1,600,000 BNT as rewards, depending on the multiplier.

FOR

Continue BNT LM rewards on the ETH pool, at 100-200k BNT/week, until the launch of Bancor 3.

AGAINST

Do not extend the BNT rewards in the ETH pool.