This proposal is also on Balancer's Forum.

TL;DR

This is a proposal to increase the GNO cap tier from cap3 to cap4 ($10M -> $30M). GNO adjusted liquidity has been consistently greater than $10m since December 2020.

The Proposal

This is a proposal to increase the GNO cap tier from cap3 to cap4 ($10M -> $30M).

At the time of writing GNO has over $22M in total liquidity on Balancer Pools, and has thus surpassed its $10M cap.

Gnosis hopes to further strengthen synergies with Balancer in light of the upcoming launch of Gnosis Protocol V2, a Meta Dex-Aggregator. V2 channels orders to underlying on-chain AMMs for execution and hopes to be integrating Balancer as one of its first partners.

As Gnosis has contributed liquidity for multiple Balancer pools, Gnosis currently holds 52,146 BAL. Gnosis holds and continues to earn a significant amount of BAL tokens which it intends to transfer to GnosisDAO to hold as an investment, instead of selling in the open market.

Balancer is currently the most liquid exchange for GNO and it would be good to keep incentivizing it to avoid the fragmentation of its liquidity. The GNO token migration to other exchanges could potentially reduce Balancer’s competitive advantage of having the lowest fee and slippage for GNO/ETH pairs.

What is GNO?

GNO is the governance token of GnosisDAO, which launched Nov 23rd 2020 and has since seen significant growth in community engagement. It currently has a $164M market cap.

GnosisDAO owns several core Ethereum infrastructure components such as the Gnosis Safe which currently holds more than 2% of the total ETH supply. GnosisDAO will soon launch Gnosis Protocol V2, a Meta Dex-Aggregator that channels liquidity to on-chain AMMs such as Balancer.