TL;DR

• Proposal to increase ICHI co-investment to 350k BNT
• Proposal to increase ICHI trading fee to 1%

Background

ICHI was whitelisted on April 26th, 2021 3 with an overwhelming response of 51% quorum and 97.41% for votes. On May 27th, 2021, ICHI announced ICHI V2, featuring a Decentralized Monetary Authority 1 with audits by Quantstamp and Solidified. ICHI V2 will launch mid-June. ICHI plans to create and bootstrap a oneBNT (stablecoin minted with BNT) for the Bancor community as soon as Bancor announces the availability of shadow tokens.

Justification

ICHI coinvestment started at 20k BNT. This was filled on the same day and resulted in a 5X increase in Bancor liquidity. However, the ICHI pools on Sushiswap, 1INCH, and Balancer are still 5-10X larger than the pool on Bancor. The difference in TVL means that most trading volume still routes through these other exchanges. The following two actions will improve the profitability and trading volume of the Bancor pool:

• Increasing ICHI co-investment to 350k BNT. More ICHI will be added and the TVL will increase to be on par with the other exchanges.
• Increasing the trading fee to 1%. Other smaller cap pools are getting great APYs with fees closer to 1%.

This actions should result in most ICHI liquidity being on Bancor. The math: (350k * 4.8 BNT)/.5 = $3.3M in liquidity versus ~$7M on other AMMs ($3.9M Sushiswap). The increase in ICHI incentives: the increase in Bancor liquidity will result in ~1/3 of ICHI liquidity incentives routing to dual-sided Bancor LPs (and single-sided once supported) with the next ICHI weekly adjustment. This is expected to provide an additional boost that brings 50+% of ICHI liquidity to Bancor.

Governance Participation Reward

40 xICHI (staked ICHI eligible for Ichipowah voting and ICHI governance rewards) will be granted to each ‘Yes’ or ‘No’ voter who meets either of the following eligibility criteria:

• All voters who voted on ICHI’s last proposal 3 and have not un-staked the 20 xICHI reward for voting on that proposal. These voters represent ~98% of the vBNT that voted on the last proposal.
• The top 50 (vBNT descending) voters who did not vote on ICHI’s last proposal and vote on this proposal with at least 50 vBNT