This proposal is expected to appear on Snapshot for voting on [date=2021-08-15 time=12:00:00 timezone=“UTC”]. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

Proposal to Extend LM rewards for WOO

TL DR

1. The LM Rewards will be extended on the WOO Pool. The pool has enjoyed close to 100 days of BNT LM rewards.
2. The current reward rates for the pool will be unaffected.
3. The LM rewards duration on the WOO pool can be ended prior to the completion of the extension if the DAO votes to do so.
4. The LM rewards rate on the WOO pool can be modified prior to the completion of the extension if the DAO votes to do so.

Pool depth and volume vs other exchanges and Bancor

The WOO/BNT pool on Bancor and the WOO/BNB pool on PancakeSwap have the highest liquidity in any DEX (Figure 1).

Figure 1 - WOO markets (taken from https://www.coingecko.com/en/coins/wootrade-network#markets)

Compared to other tokens that have an ongoing or had an LM campaign, the total fees for different time periods show that the WOO/BNT pool has been a consistent top performer:

~90 Days ago (since the week of 5/10):

symbol	total_fees
MATIC	$1294551.31
ENJ	$677034.03
wNXM	$395338.39
SNX	$335653.10
ALPHA	$281490.65
YFI	$278519.70
AAVE	$265097.13
WOO	$259858.44
MKR	$235950.65
ROOK	$196656.61
BAT	$133974.06
GRT	$92901.80
UNI	$90690.41
OCEAN	$89984.20
REN	$74395.38
MPH	$34038.82

~60 Days ago (since the week of 6/7):

symbol	total_fees
ENJ	$395003.40
MATIC	$257209.13
WOO	$213601.72
SNX	$167911.21
ALPHA	$117988.93
wNXM	$114426.41
ROOK	$112195.55
AAVE	$94008.27
BAT	$81431.75
OCEAN	$54197.10
MKR	$48255.73
GRT	$44936.27
YFI	$42744.86
REN	$31616.74
UNI	$21866.38
MPH	$16499.87

~30 Days ago (since the week of 7/12):

symbol	total_fees
ENJ	$153636.043
MATIC	$67828.43
SNX	$63558.83
WOO	$54212.29
ALPHA	$48216.45
wNXM	$44557.74
ROOK	$42532.47
BAT	$32948.35
AAVE	$28758.60
OCEAN	$19842.99
MKR	$17277.90
GRT	$12406.04
YFI	$11897.43
REN	$11043.89
MPH	$8397.70
UNI	$6742.48

Figure 2 - WOO daily volume on Bancor.

Added value of extending LM rewards

After discussion with the Wootrade team, @BenYorke has replied with the following:

• Team can publicly commit to adding WOO LM rewards, moving them from Uniswap v2 to Bancor
• We can also suggest that we will explore including Bancor in our on-chain trading strategies, bringing more volume there. Both these are somewhat dependent on v3.
• BNT is listed on our network and we will be connecting to more institutions and exchanges, bringing BNT liquidity support to them.

Justification

1. The pool has one of the deepest liquidity in any CEX/DEX. Keeping the LM rewards active will help maintain its liquidity ahead of v3.
2. The WOO/BNT pool has consistently been a top performer when taking into account the last 30, 60 and 90 days of volume.
3. The synergy between Bancor and Wootrade cannot be overlooked and an extension of the LM rewards alongside the Wootrade team’s promises to bring WOO LM rewards and explore other ways of adding value to Bancor would bring this partnership one step further.
4. Utilising BNT LM rewards as a tool to build/incentivise mutually beneficial relationships with other projects is arguably one of the best use cases for it, as can be seen from the Harvest Finance buyback mechanism migration success [1].

FOR Extend LM rewards on the WOO/BNT pool.

AGAINST Do NOT extend LM rewards on the WOO/BNT pool.

[1] https://gov.bancor.network/t/proposal-targeted-lm-campaign-for-farm-to-capture-buyback-mechanism/2556