Increase trading liquidity on wNXM-BNT pool to 2M BNT

TLDR

• This proposal seeks to increase the trading liquidity to 2M $BNT for the $wNXM pool from the current 1M $BNT .
• It will open up space for LPs on the TKN side ( $wNXM ) and increase the depth of the pool as LPs add liquidity
• A larger $wNXM pool will attract more trades from aggregators and professional market makers to Bancor which ultimately leads to more fees for our platform.

For

1. An increase in $BNT trading liquidity will let LPs stake single-sided and lead to an increase in pool depth
2. More liquidity in the wNXM-BNT pool should lead to larger volume from DEX aggregators and professional market makers sent in our direction
3. More volume for Bancor leads to more fees for our platform and $BNT holders

Against

1. We should not increase the co-investment limit on the pool or lower its fees

Abstract There are currently ~2M $BNT and ~104.5K $wNXM tokens in the BNT-wNXM pool. This has resulted in a pool that has roughly ~14.6M in liquidity. This proposal seeks to increase the $wNXM pool’s single-sided capacity by increasing the trading liquidity to 2M $BNT from the current 1M $BNT.

Motivation

If we want to attract more wNXM LPs to Bancor, we need to open up space in the pool so that they can provide single-sided liquidity. This would allow us to grow the liquidity in the pool and attract larger trades towards our platform which ultimately results in higher fees for Bancor.

The top pool for wNXM is on Uniswap V3 and it is paired with ETH. Pool depth is roughly 7.8M:

There is also a smaller pool on Uniswap V2 with 900K in liquidity:

Currently, the Bancor pool has no space available and LPs can’t provide single-sided liquidity on the TKN side ($wNXM). I am proposing a 2M Co-investment limit for the $wNXM pool.