Increase Co-investment limit to 1M BNT on MTA Pool

Voting ended almost 5 years agoSucceeded

Read the original proposal on Discourse

TLDR:

This proposal seeks to increase the co-investment limit to 1m BNT in the MTA pool.
It will open up more opportunities for LPs from MTA holders, increasing the depth of the pool as LPs add liquidity, creating a deep liquid market for MTA with single-sided token exposure and impermanent loss protection thanks to Bancor v2.1.
A large MTA pool on Bancor will attract more trades from aggregators, professional market makers and ultimately more fees for the platform.

Abstract :

mStable is focused on making mStable protocol token MTA as liquid as possible. The mStable DAO recently proposed to deploy circa US$5 million into a 50/50 Uniswap MTA/DAI pool which was later ratified by Meta governors in a vote.
In addition, the Uniswap MTA/WETH pool has $7.4m in liquidity (938,588 MTA + 1480 ETH), with a 24-hour trading volume of $3.7m.
An MTA/BNT liquidity pool has also been whitelisted on Bancor offering single-sided liquidity and impermanent loss protection. It currently has a liquidity depth of $62k.
Bancor’s phenomenal growth and launch of single-sided liquidity pools with impermanent loss protection has definitely caught the interest of the mStable community, as it offers a superior value proposition through a HODL + LP strategy while simultaneously offering impermanent loss protection
This proposal is seeking to increase single-sided capacity in the MTA pool by increasing the Co-investment limit to 1M BNT, and the mStableDAO is keen to seed US$1m in initial liquidity in MTA.
Further down the line, there is an opportunity to divert some MTA in staking contracts (~US$33m) into this liquidity pool.

Motivation

Uniswap is the primary DEX for facilitating MTA trades, with liquidity routing through the MTA/ETH pair.
We believe there is a huge potential to attract MTA LPs to Bancor given Bancor’s unique impermanent loss protection which offers MTA holders the ability to offer single-sided liquidity.
We require the help of Bancor’s governance to open up space for more MTA LPs to provide single-sided liquidity, attracting larger trades on Bancor and accruing higher swap fees to the platform.

Off-Chain Vote

FOR

7.42M 97.9%

AGAINST

161.92K 2.1%

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Timeline

Apr 19, 2021Proposal created

Apr 19, 2021Proposal vote started

Apr 22, 2021Proposal vote ended

Oct 08, 2025Proposal updated

TLDR:

This proposal seeks to increase the co-investment limit to 1m BNT in the MTA pool.

It will open up more opportunities for LPs from MTA holders, increasing the depth of the pool as LPs add liquidity, creating a deep liquid market for MTA with single-sided token exposure and impermanent loss protection thanks to Bancor v2.1.

A large MTA pool on Bancor will attract more trades from aggregators, professional market makers and ultimately more fees for the platform.

Abstract :

mStable is focused on making mStable protocol token MTA as liquid as possible. The mStable DAO recently proposed to deploy circa US$5 million into a 50/50 Uniswap MTA/DAI pool which was later ratified by Meta governors in a vote.

In addition, the Uniswap MTA/WETH pool has $7.4m in liquidity (938,588 MTA + 1480 ETH), with a 24-hour trading volume of $3.7m.

An MTA/BNT liquidity pool has also been whitelisted on Bancor offering single-sided liquidity and impermanent loss protection. It currently has a liquidity depth of $62k.

Bancor’s phenomenal growth and launch of single-sided liquidity pools with impermanent loss protection has definitely caught the interest of the mStable community, as it offers a superior value proposition through a HODL + LP strategy while simultaneously offering impermanent loss protection

This proposal is seeking to increase single-sided capacity in the MTA pool by increasing the Co-investment limit to 1M BNT, and the mStableDAO is keen to seed US$1m in initial liquidity in MTA.

Further down the line, there is an opportunity to divert some MTA in staking contracts (~US$33m) into this liquidity pool.

Motivation

Uniswap is the primary DEX for facilitating MTA trades, with liquidity routing through the MTA/ETH pair.

We believe there is a huge potential to attract MTA LPs to Bancor given Bancor’s unique impermanent loss protection which offers MTA holders the ability to offer single-sided liquidity.

We require the help of Bancor’s governance to open up space for more MTA LPs to provide single-sided liquidity, attracting larger trades on Bancor and accruing higher swap fees to the platform.