Bancor

This proposal is expected to appear on Snapshot for voting on August 15, 2021 8:00 AM EST. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

• Increase ICHI co-investment to 700k BNT from 350k BNT
• Lower ICHI trading fee to 0.3%

Background

ICHI was whitelisted on April 26th, 2021 with an overwhelming response of 51% quorum and 97.41% for votes. ICHI coinvestment was increased to 350k BNT on June 10, 2021 with 54% quorum and 99.85% for votes.

Soon after, ICHI launched V2 of its platform which has supported stablecoins for the 1inch, Filecoin, Fuse, and 88MPH communities. ICHI’s oneToken Factory, audited by Quantstamp and Solidified, deployed a Decentralized Monetary Authority (DMA) for each community stablecoin with a total of $30M TVL supported by the system.

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.

Fee Decrease Justification

The ICHI fee was increased from 0.2% to 1% in the June 10th proposal as an experiment. This resulted in a 80-90% decrease in Bancor trading volume and a lower APR for the pool. In short, the experiment failed to increase total trading fees. As a next step, we should lower the fee to be more competitive with Sushiswap, 1INCH, and Uniswap by lowering the fee to 0.3%. This is still 50% higher than the original 0.2% fee.

Coinvestment Justification

ICHI liquidity on Bancor is now at parity with ICHI liquidity on Sushiswap because of the last coinvestment increase but there is only space available for 3,898 more ICHI. ICHI currently provides a 46% APY to this pool via xICHI rewards. An increase in co-investment to 700k BNT will enable Bancor liquidity to surpass ICHI liquidity on other AMMs.

ICHI News Highlights Since Last Proposal

• ICHI launches ‘Decentralized Monetary Authority’ for stablecoin issuance (CoinTelegraph)
• Filecoin Now Has Its Own Stablecoin. But Why? (Decrypt)
• 1inch to launch dollar-pegged stablecoin with ICHI (CoinTelegraph)
• Fuse Network and ICHI Partner To Empower Any Community or Business With Its Own Stablecoin (Daily Hodl)
• Ren is bringing decentralized stablecoins to Dogecoin (DOGE) and others (Crypto Slate)