Increase the trading liquidity limit in the WOO pool from 750k BNT to 1M BNT

For this proposal to pass, it requires a 40% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on [date=2022-01-30 timezone="Europe/Lisbon"]. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

• There is currently a discussion in the #treasury-management channel on the WOO Discord about staking WOO DAO Treasury funds on Bancor. According to WOO DAO guidelines, discussion can result in a WRC (WOO Request for Comment), and finally a WIP (WOO Improvement Proposal).
• The pool doesn't currently have significant space for WOO DAO treasury funds to be staked if a WIP passes. In any case, the pool would greatly benefit from an increase in the available space for WOO to be staked single-sided.
• This proposal seeks to increase the trading liquidity limit in the WOO pool from 750k BNT to 1M BNT. If the pool is filled, a new trading liquidity limit increase may be proposed.
• The pool has space for 215,129 WOO to be staked single-sided and is the second deepest WOO pool on Ethereum.

Rationale

DEX liquidity on Ethereum

The WOO pools with deepest liquidity in Ethereum DEXes are:

• The WOO/ETH 0.3% pool on Uniswap v2 with $9,372,838 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 13.55% [1].
• The WOO 0.2% pool on Bancor with $7,574,455 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 3.38% [2]
• The WOO/ETH 0.3% pool on Uniswap v3 with $2.04m liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 3.77% [3].
• The WOO/USDC 0.3% pool on Uniswap v3 with $642.18k liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 0.00% [4].
• The WOO/USDC 0.3% pool on Sushiswap with $589,578.75 liquidity, and an extrapolated APY from the fees accrued in the past 24 hours of 12.06% [5].

The extra space in the pool would allow for an additional 928,217 WOO (~$600,000) to be staked single-sided, with BNT at $2.40 and WOO at $0.6464.

The pool has space for 215,129 WOO (~$139,059) to be staked single-sided. If the pool is filled with the proposed trading liquidity limit and already available space, it should hold a total liquidity of at least $9,123,296.

WOO pool weekly Volume and Fees are presented in Figures 1 and 2, respectively.

1600×519 88.5 KB

1600×514 134 KB

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 WOO pool from 750k BNT to 1M BNT.

AGAINST

Keep the trading liquidity in the WOO pool at 750k BNT.

[1] Uniswap Info [2] Bancor: Converter 612 | 0xc51bDa643AFBCf2D5c97678a1AbB825f48BF53d8 [3] Uniswap Info [4] Uniswap Info [5] WOO-USDC | SushiSwap Analytics