Increase the trading liquidity limit in the PHTR pool from 100,000 BNT to 400,000 BNT

For this proposal to pass, it requires a 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on February 13, 2022 (London) . Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

• The pool has space for 8,721 PHTR or roughly ~$1,268.
• This proposal seeks to increase the trading liquidity limit in the PHTR pool from 100,000 BNT to 400,000 BNT.
• The proposed trading liquidity limit would open space for roughly 5.3m PHTR to be staked single-sided.
• The Phuture Finance team has staked BNT in the PHTR pool to open up space for non-treasury stakes to benefit from single-sided staking and impermanent loss protection.
• Phuture Finance would stake 5m PHTR (roughly $720,000) in the pool when the space opens.

Rationale

DEX liquidity on Ethereum

The PHTR pools with deepest liquidity in Ethereum DEXes are:

• The PHTR 1% pool on Bancor v2.1 with $691,526 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 10.98% [1].
• The PHTR/USDC 0.3% pool on Sushiswap with $129,797.20 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 36.28% [2].
• The PHTR/WETH 0.3% pool on Sushiswap with $93,930.28 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 5.77% [3].

The extra liquidity would bring the total trading liquidity to at least $1,004,000 if it is full, with BNT at $2.51. This would bring the total depth of the pool to over $2mm making it by far the most liquid venue to exchange PHTR.

DAO controlled liquidity

The PhutureDAO intends to immediately fill the new trading limit if it is approved. This would ensure that the capital in the pool was backed by the DAO and therefore would remain staked regardless of market conditions. This gives PHTR holders confidence that they can always efficiently buy and sell their PHTR on Bancor at any time.

From PhutureDAO’s perspective this trading limit increase symbolises our commitment to using Bancor as not only our primary liquidity provider on Ethereum, but also our commitment to using Bancor as our treasury management solution. Bancor will allow us to maintain the same composition of treasury assets through single-sided staking, keep intact the buy and hold return profile of our PHTR with IL protection and allow us to be productive with the PHTR through fee generation.

Additional commitment to Bancor 3

Phuture intends to move all liquidity over to Bancor 3 as soon as it goes live. We are also considering participating in the Bancor LM matching programme when Bancor 3 goes live!

FOR

Increase trading liquidity in the PHTR pool from 100,000 BNT to 400,000 BNT.

AGAINST

Keep the trading liquidity in the PHTR pool at 100,000 BNT.