Increase trading liquidity on CEL-BNT pool to 1M BNT

TLDR

• This proposal seeks to increase the trading liquidity to 1M $BNT for the $CEL pool from 250K $BNT.
• It will open up space for LPs on the TKN side ( $CEL ) and increase the depth of the pool as LPs add liquidity
• A larger $CEL 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 CEL-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 trading liquidity limit on the pool or lower its fees

Abstract There are currently ~294K $BNT and ~254K $CEL tokens in the BNT-CEL pool. This has resulted in a pool that has roughly ~2M in liquidity. This proposal seeks to increase the $CEL pool’s single-sided capacity by increasing the trading liquidity to 1M $BNT from the current 250K $BNT.

Motivation

If we want to attract more CEL 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 CEL is on Uniswap V3 and it is paired with ETH. Pool depth is roughly 6.36M and we should try to be as deep as this pool if not deeper.

There is also a decent size pool on Uniswap V2 with 1.6M in liquidity.

Currently, the Bancor pool has no space available and LPs can’t provide single-sided liquidity on the TKN side ($CEL). I am proposing a 1M trading liquidity increase for the $CEL pool.