Proposal to increase the trading liquidity limit in the PHTR pool from 400,000 BNT to 800,000 BNT

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

TL;DR

This proposal seeks to increase the trading liquidity limit in the PHTR pool from 400,000 BNT to 800,000 BNT. Phuture Finance will stake 6.8m PHTR (roughly $860,000) that will be made available with the increase in the trading limit.

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 is 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.

Rationale

From PhutureDAO’s perspective this trading limit increase symbolises our continued 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.

Additionally, having a deeper liquidity pool will allow us to utilise our DAO assets more efficiently to bootstrap liquidity pools (on Bancor) for index products. It is absolutely key that we have effective liquidity management solutions for our index products particularly as our catalogue of products grow.

Further, the main risk we see in providing this level of liquidity is that the IL protection will not be solely covered by TKN and actually some BNT will be required to fully cover our IL. We don't see this as a drawback as we are happy to hold some BNT on our balance sheet being that it is one of the most liquid tokens in crypto.

It goes without saying that we will be moving all our liquidity to Bancor 3 as soon as it is live.

FOR

Increase trading liquidity in the PHTR pool from 400,000 BNT to 800,000 BNT.

AGAINST

Keep the trading liquidity in the PHTR pool at 400,000 BNT.