Increase the trading liquidity limit in the REQ pool from 1m BNT to 1.75m BNT

TL;DR

• The pool has space for 3,871,522 REQ or roughly ~$894,480.

• This proposal seeks to increase the trading liquidity limit in the REQ pool from 1,000,000 BNT to 1,750,000 BNT.

• Request Protocol would stake 7.5m REQ in the pool when the space opens.

Rationale

DEX liquidity on Ethereum

The REQ pools with deepest liquidity in Ethereum DEXes are:

• The REQ/ETH pool on Uniswap v2 with $2,029,860 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 6.40% [1].

• The REQ 0.2% pool on Bancor with $3,214,362 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 0.20% [2].

The extra liquidity would bring the total pool liquidity to at least $8,260,000 if it is full, with BNT at $2.36.

Volume and fee performance

REQ pool weekly Volume and Fees are presented in Figures 2 and 3, respectively.

Figure 2 - REQ weekly volume since the end of August.

Figure 3 - REQ weekly fees since the end of August.

The pool would benefit from a larger trading liquidity limit to reduce swap price impact, increase volume/fees and thus improve APY.

FOR

Increase trading liquidity in the REQ pool from 1M BNT to 1,750,000 BNT.

AGAINST

Keep the trading liquidity in the REQ pool at 1M BNT.

[1] https://v2.info.uniswap.org/pair/0x4a7d4be868e0b811ea804faf0d3a325c3a29a9ad

[2] https://etherscan.io/address/0x483F65300b6Cb6f211aAB39229d494E59Fe24E66