Bancor

TL;DR

• Ren has advised holders to bridge back as they are sunsetting this version December 20th 2022
• Bancor V3 has:
  • MasterVault Balance 20.37031372 renBTC
  • Staked Balance 0.03051750 renBTC
  • Protocol Owned 20.33979622 renBTC
• This proposal suggests that the BancorDAO should use DeFi protocols to trade its renBTC for BNT and then burn the BNT.
• This can help reduce the deficit across all pools in V3.
• If for some reason there is not sufficient liquidity left in DeFi protocols, this proposal suggests a plan B of unwrapping renBTC to BTC and then to WBTC and then converting to BNT and burning the BNT.

History

• Bancor has had liquidity for renBTC since the launch of Bancor V2
• The highest levels of liquidity were during late 2020 and early 2021
• Reminder:
  • The protocol contributed BNT to the pool by virtue of how V2.1 functioned.
  • Users exchanged renBTC for BNT, as a result, the protocol ended up with a balance of renBTC.

Status of REN

• As announced previously, the Ren 1.0 network is shutting down due to the "events surrounding Alameda” Source: https://twitter.com/renprotocol
• REN is asking all users to bridge out of REN 1.0 assets by December 20th.
• More details can be found in their blog post: https://medium.com/renproject/moving-on-from-alameda-da62a823ce93

Status of renBTC in V3

• MasterVault Balance 20.37031372 renBTC
• Staked Balance 0.03051750 renBTC
• Protocol Owned 20.33979622 renBTC

There is only one LP in the pool with a staked balance of 0.03051750 renBTC.

Process

• The deadline for this operation is December 20th, 2022 as REN mentioned that they will only support burning/releasing of these assets 30 days after their tweet.
• This proposal meets our urgent guidelines from BIP3
  • “Similarly, urgent matters requiring immediate action can expedite the sufficient time requirement. Any other proposal that is not of imminent importance to the continuity of the project is not exempted.”

Summary

Plan A

• If this proposal passes, then the protocol owned renBTC will be removed from the vault and converted to BNT using DeFI protocols.
  • Note: This is likely to involve more than one transaction to reduce slippage (for example, renBTC = > WBTC => ETH => BNT)

Plan B

• If there is not sufficient liquidity to do this by the time the vote concludes, this proposal suggested unwrapping renBTC and then wrapping it to WBTC. Once that is done, the same conversion to BNT and burn events will follow.

FOR: Allow the Bancor protocol to withdraw its renBTC, convert this to BNT and burn it.

AGAINST: Take no Action