Increase the trading liquidity limit in the MFG pool from 400k BNT to 800k BNT & Fee Tier to 1%

For this proposal to pass, it requires a 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on [date=2022-05-29 timezone="Europe/London"], . Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

• The MFG pool has recently been whitelisted (https://snapshot.org/#/bancornetwork.eth/proposal/0x422351d6f914095b61149d35c1bd8347c04e9a297d389cec214b0b19637ba74b).
• The MFG liquidity balance has recently been increased from 50k to 100k BNT (https://snapshot.org/#/bancornetwork.eth/proposal/0x07ce0f63c4b888229e0bd572c79d0f13099936b3b39184410b1723b8be9551a6).
• The MFG liquidity balance has recently been increased from 100k to 200k BNT (https://snapshot.org/#/bancornetwork.eth/proposal/0xbecc4674c80f5fc9da86abec67899bb008324181d47ced06583685f419c43a65).
• The MFG liquidity balance has recently been increased from 200k to 400k BNT (https://snapshot.org/#/bancornetwork.eth/proposal/0x3616d5b732fe2be8976102ebe26db368075f8ed0a4d769949519447c874b92ce).
• Smart MFG has recently reduced the treasury LP on Uniswap v3 by 25% to attract more users/volume to the Bancor pool
• This proposal limit increase will be the final precursor before the Bancor v3 migration & upcoming liquidity mining (LM) campaign
• If this new limit proposal is approved, Smart MFG WILL allocate/fill 25% of the new liquidity balance. The remaining free liquidity balance will be made available for liquidity providers (LP) who wish to stake & participate in our LM campaign.
• The MFG liquidity balance is currently near full.

• The MFG liquidity on other decentralized exchanges justifies proposing an increase.
• Increasing the pool’s liquidity will improve price impact and help direct more volume to Bancor.
• This proposal seeks to increase the trading liquidity limit in the pool from 400k BNT to 800k BNT.
• This proposal also seeks to update the fee tier to 1%.
• Smart MFG will incentivise the MFG pool on Bancor v3 with liquidity mining rewards.
• We will also redirect or inform/promote this new LM campaign on our dashboard at https://rewards.smartmfg.io/. Current Uni v3 campaign ended in March and Smart MFG will prepare for the LM campaign after the release of Bancor v3. Official thread announcement found here: https://twitter.com/MFGcoin/status/1509300650970017793?s=20&t=oa2ubZoV8U_4pkkT1doBMg

Rationale

The Deepest MFG pools are:

• The MFG/ETH 1% Uniswap v3 pool with $275k liquidity, and $23k daily volume [1].

• The MFG/USDC 1% Uniswap v3 pool with $4.68k liquidity, and $0 daily volume [2].

• The MFG/DAI 1% Uniswap v3 pool with $264.84 liquidity, and $0 daily volume [3].

• The MFG 0.3% Bancor v2.1 pool with $988,956 liquidity, and $$9,008 daily volume [4].

The extra liquidity would bring the total pool liquidity to at least ~$2,000,000, if the space in the pool is filled. If this happens, a proposal to increase the trading liquidity limit again should be considered.

FOR

1. Increase trading liquidity in the MFG pool from 400k BNT to 800k BNT.

2. Set/Update Fee Tier to 1%.

AGAINST

1. Keep the trading liquidity in the MFG pool at 400k BNT.

2. Keep existing Fee Tier

[1] https://info.uniswap.org/#/pools/0x3c8e1997d9f93c989d4d7660b6ca52c451ad7554

[2] https://info.uniswap.org/#/pools/0x27d02cfdf949447ccfe4d5a5dcb9c40aaf4ad7c4

[3] https://info.uniswap.org/#/pools/0x3df3e64075243d35f3b60551e0fbd4c1ef3b9752

[4] Bancor: Converter 638 | Address 0x349419BcE4181d7D223442Fa48Ba9e611173A745 | Etherscan