End Temporary ICHI Liquidity Reduction (Return to 2M $BNT Trading Liquidity) and Increase Trading Fee to 1.3%

TL;DR

• Bancor to update the ICHI-BNT pool fee to 1.3% to increase protocol revenue
• Bancor to revert back ICHI on-curve liquidity to what it was prior to the temporary reduction in July 2022 (scheduled increase included) which was 2m $BNT

Background & Rationale

1. ICHI trading liquidity limit was increased to 1M BNT on February 2, 2022 with 49.08% quorum and 100% for votes.
2. ICHI trading liquidity limit was increased to 2M BNT on April 3, 2022 with 46.99% quorum and 89.53% for votes.
3. Temporary ICHI trading liquidity decrease on July 20, 2022 with 46.99% quorum and 100% for votes.

Since the most recent Bancor vote, ICHI has launched 40+ new vaults with partners locking in over $13M in TVL and automated liquidity strategies on-chain using Chainlink Keepers.

ICHI plans to work with the Bancor DAO to increase Bancor protocol revenue through increasing the pool fee tier to 1.3% and increasing on-curve ICHI liquidity to enable higher volume of trades to be routed to and executed by the BNT-ICHI Bancor v3 pool.

Benefits to Bancor

• Increased protocol revenue due to higher fee tier
• Deeper liquidity leading to higher trading volume on v3 pool

Growth Schedule

Current trading liquidity is 45,385 $ICHI and 422,870 $BNT.

Suggested $ICHI trading liquidity growth Schedule:

1. 45,385 $ICHI
2. 90,770 $ICHI
3. 181,540 $ICHI
4. ~220,000 $ICHI (based on price targeting the initial $2M in $BNT)

Note the growth of $ICHI trading liquidity is based on what is currently on the bonding curve and it is always doubled from its previous value.

For: Approve growing trading liquidity on the $ICHI pool to 2m $BNT and increasing pool fee to 1.3%

Against: Do nothing