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 USDC is due to end in less than 3 weeks.
• To maintain USDC liquidity until the launch of Bancor 3, this proposal seeks to extend the LM rewards program on the USDC pool for a further 8 weeks or until Bancor 3 is released.
• USDC would continue to receive emissions of 25-50k BNT per week, for an additional 8 weeks or until Bancor 3 is launched.

Discussion

1. USDC is the 4th deepest pool on Bancor, representing roughly 2.4% of Bancor v2.1’s TVL.
2. Sustaining liquidity in the USDC pool is essential to maintain the position of the Bancor protocol on the market.
3. The USDC pool brings a significant share of the volume of the ecosystem.
4. USDC pool’s weekly volume and fees are shown below in Figures 1 and 2.

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

Figure 2 - Weekly USDC 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 USDC 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 USDC for 8 weeks will provide 200,000 - 400,000 BNT as rewards, depending on the multiplier.

FOR

Continue BNT LM rewards on the USDC pool, at 25-50k BNT/week, until the launch of Bancor 3.

AGAINST

Do not extend the BNT rewards in the USDC pool.