Bancor

This proposal is expected to appear on Snapshot for voting on [date=2022-07-17 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.

We propose that ICHI’s liquidity threshold be temporarily reduced to 10% of its current value to decrease the risk of an increasing ICHI deficit in the protocol. By default (with no additional vote), this threshold will be returned to its current level once Bancor’s protocol deficit is returned to zero. ICHI will provide $ICHI auto-compounding rewards to a $BNT HODL Vault help Bancor eliminate the deficit.

TL;DR

• Reduce ICHI’s Liquidity Threshold to 10% of its current value until Bancor’s protocol deficit is zero
• ICHI to establish a $BNT HODL vault with auto-compounding rewards to help reduce Bancor’s deficit
• ICHI and Bancor to continue a long-term partnership to create liquidity for crypto projects

Situation 2,290 ICHI (worth $10k) has been transferred from the Bancor Master Vault V3 contract to the ‘Sushiswap: ICHI-ETH’ contract in the last 48 hours. This $ICHI was owned by holders of the bnICHI LP token. However, the $BNT paid for this ICHI will not be given to the holders of the bnICHI LP token at this time. There is a risk that this accelerates and further increases the deficit of ICHI in the protocol owed to the holders of the bnICHI LP token.

BNT HODL Vault ICHI has established a $BNT HODL vault in support of the Bancor protocol and community. It has had a 39% annualized $BNT-denominated return since inception. Up to 5k $ICHI weekly in auto-compounding rewards will be provided to this pool to incentivize further deposits of $BNT. ICHI hopes this will help reduce Bancor’s protocol deficit.

Q: Why not simply withdraw LP from Bancor? A: The ICHI community wants to support Bancor’s efforts to restore its protocol and remain a long term partner of Bancor.

Vote: For - Temporarily Reduce ICHI Trading Liquidity to 231k Against - Do Nothing