Increase the trading liquidity limit in the FODL pool from 250k BNT to 500k BNT

TL;DR

• The FODL pool has recently been whitelisted , with a recent trading liquidity limit change from 100k to 250k BNT.
• There is currently space for 924,052 FODL to be staked single-sided in the pool.
• Increasing the pool’s liquidity will improve price impact and help direct more volume to Bancor.
• The FODL liquidity on other decentralised exchanges justifies proposing an increase.
• This proposal seeks to increase the trading liquidity limit in the pool from 250k BNT to 500k BNT.

Rationale

The FODL pools with deepest liquidity in Ethereum DEXes are:

The FODL/USDC 0.3% SushiSwap pool with $7,165,280.59 liquidity, and $11,593.93 daily volume [1].

The FODL/WETH 0.3% SushiSwap pool with $6,056,092.18 liquidity, and $30,522.11 daily volume [2].

The FODL 0.2% Bancor pool with $1,134,247 liquidity, and $5,797 daily volume [3].

The extra liquidity would bring the total pool liquidity to at least ~$2.26m, if the space in the pool is filled. If full, the Bancor FODL pool would only have 31.50% of the liquidity in the FODL/USDC Sushiswap pool. Therefore, if it happens, a proposal to increase the trading liquidity limit again should be considered.

Volume and fee performance

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

Figure 2 - FODL weekly volume since the end of February.

Figure 3 - FODL weekly fees since the end of February.

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 FODL pool from 250k BNT to 500k BNT.

AGAINST

Keep the trading liquidity in the FODL pool at 250k BNT.

Analytics links available at original Governance proposal: https://gov.bancor.network/t/proposal-to-increase-the-trading-liquidity-limit-in-the-fodl-pool-from-250k-bnt-to-500k-bnt/3544