Increase space in the SNX pool from 5,000,000 BNT to 9,000,000 BNT

TL;DR

• SNX pool fee is being increased from 0.2% to 1%.
• The pool currently has space for 1,464,174 SNX to be staked single-sided.
• This proposal seeks to increase the SNX Trading Liquidity from 5M BNT to 9M BNT, to attract more liquidity to the pool and make it the deepest in any DEX.

Abstract

Deepest SNX pools on Ethereum are:

The SNX/WETH 50%/50% 0.27% (dynamic fee) Balancer pool with $9,415,510 liquidity and 24hr APR of 23.39% (15.85% from swap fees) [1].

The SNX 0.2% Bancor pool with $6,182,606 liquidity and 24hr APR of 15.31% [2].

The SNX/WETH 0.3% Sushiswap pool with $2,108,490.50 liquidity and 24hr APR of 36.42% [3].

The SNX/ETH 0.3% Uniswap v2 pool with $1,248,977 liquidity and 24hr APR of 31.27% [4].

The SNX/ETH 0.3% Uniswap v3 pool with $1.02m liquidity and 24hr APR of 15.79% [5].

Figure 1 - SNX Weekly Volume since the beginning of July 2021.

Figure 2 - SNX Weekly Fees since the beginning of July 2021.

Motivation

At a 9M BNT trading liquidity limit, if the SNX pool is full, its liquidity would be at least $45,180,000, making it by far the deepest pool on Ethereum. The trading liquidity limit change on pair with the SNX pool fee increase will help attract more liquidity to the pool and potentially make it the deepest on Ethereum.

FOR

Increase SNX Trading Liquidity from 5M BNT to 9M BNT

AGAINST

Keep SNX Trading Liquidity at 5M BNT

[1] Balancer [2] Bancor: Converter 578 | 0xb0536a57a8D8f5327C62d0fECbA23C5a27b5118b [3] SNX-WETH | SushiSwap Analytics [4] Uniswap Info [5] Uniswap Info