DAPP Network (DAPP) Whitelist and 500k Co-Investment Proposal
Voting Instructions
- Vote FOR to whitelist DAPP token with a co-investment of 500k BNT.
- Vote AGAINST to deny DAPP from whitelisting and co-investment.
TL;DR
- Proposal to whitelist DAPP token on Bancor with a co-investment of 500k BNT.
- DAPP LPs will be rewarded with DAPP token to incentivize the deep liquidity needed to make Bancor its liquidity hub on Ethereum.
- Through an innovative mechanism developed specifically by the DAPP Network for this purpose, the BNT<>DAPP liquidity pool’s impermanent loss protection will be covered by DAPP.
- The DAPP Network will open-source this mechanism so that the Bancor community can provide significantly more liquidity to many more promising projects with low initial market capitalizations while remaining profitable on its innovative impermanent loss protection program.
- As was previously published, the DAPP Network bridging framework will be used by Bancor for their Polkadot bridge.
Project Website: https://www.liquidapps.io
ERC20 Token Address: https://etherscan.io/address/0x939B462ee3311f8926c047D2B576C389092b1649
EOS Token Address: https://www.bloks.io/account/dappservices
Market and Trading Data
- The DAPP token price at the time of writing is $0.021
- All-time high: $0.09 (September 2, 2020)
- All-time low: $0.002 (November 6, 2020)
- Price 90 days ago: $0.031 (April 7, 2021)
- 1,056,939,327 tokens in circulation
- $22.4m current market capitalization
- The DAPP token is currently available on HitBTC, NewDex, Hoo, DefiBox, and Bitfinex
Project Information
DAPP Network’s bridging framework is a combination of decentralized services that enable cross-blockchain transfers of any type of data or asset with customizable consensus and incentive structures. It empowers developers to interoperate between EVM or EOSIO blockchains, including cross-chain smart contract execution.
Bancor Polkadot Bridge
As mentioned in a Bancor blog update in February, DAPP Network and EdgeOS will be used by Bancor itself as its cross-chain interoperability solution connecting it’s well known liquidity network to Polkadot.
Tokenomics
The DAPP Network’s native token, DAPP, is a utility token which must be staked to access DAPP Network services. Developers stake DAPP to DAPP Service Providers (DSPs) on the network in order to maintain infrastructure and receive a variety of DAPP services such as oracles, cross-chain bridging and IPFS. Token inflation is used to reward DSPs based on the percentage of the total staked DAPP tokens that are being staked to them.
Token Distribution
- 50% of the token supply was distributed during a 1 year long reverse dutch auction.
- As of today, 45% of tokens are staked for DSP service packages, and there are 8,733 unique holders on EOS.
- 10% of the token supply was distributed among the EOS community in an “Air-HODL” (vested airdrop).
- 10% of the token supply was distributed among launch partners, design partners, engagement partners and advisors. All tokens have already been vested and are part of the circulating supply.
- 10% of the token supply was designated towards the Grants and Bounties program. Some of the challenges have been successfully completed, including a global Hackathon, while others are still open.
- 20% of the token supply was distributed to the company and its Founders.
Source: https://www.bloks.io/tokens/DAPP-eos-dappservices
Benefits to Bancor Network
Bancor as the DAPP Liquidity Hub
As more utility for the DAPP token is realized on Ethereum and developer adoption increases, Bancor will be the go-to source for DAPP which will generate trading fees for Bancor. Bancor will also serve as the liquidity hub which will be used for arbitrage against all other liquidity sources present and future. Pending decisions made through decentralized governance and independent bridge operators, DAPPBNT LP positions could even potentially serve as bridging collateral in the future.
DAPP Liquidy Mining Rewards for DAPP LPs
Liquidity incentives will be offered to DAPP liquidity providers to encourage them to bridge their tokens to Ethereum and make Bancor the top liquidity source for DAPP tokens on Ethereum. This will drive all DAPP volume and fees on Ethereum to BNT token holders. As DAPP becomes more widely used by Ethereum developers and projects, they will need to come to Bancor to acquire their DAPP tokens, where we would also like to see the deepest liquidity.
Impermanent Loss Protection Covered using DAPP Tokens
Typically whitelisted pool IL protection is covered by the protocol, which may potentially create some risk for whitelisting tokens with lower market caps that have a lot of potential to increase in price compared to BNT initially. When this volatility occurs and an LP withdraws, BNT must be minted to cover the impermanent loss that is paid out to the LP. If this LP wants to remain 100% long on their original token, they may then swap their extra BNT for that other token, thereby causing even more impermanent loss for the rest of the liquidity still staked into the pool.
To offset this risk, an innovative smart contract has been developed that will cover all impermanent loss incurred by LPs when the value of DAPP grows in relation to BNT. Meaning that every time DAPP is unstaked from Bancor, and impermanent loss protection is due to the LP - the protection amount will be paid in DAPP instead of BNT, which makes this an attractive proposal for Bancor Network stakeholders.
Earning DAPP token rewards will require LPs to stake their LP tokens to a reward contract. This contract will burn any BNT that is used to pay for IL when the price of DAPP goes up against BNT, and replace it with DAPP tokens of equal value. BNT will continue to be used to cover any IL to the downside. This sharing of risk greatly benefits BNT holders due to the downside risk for IL protection being limited while the upside risk is potentially unlimited.
The idea for providing IL protection was conceptualized by Bancor and LiquidApps co-founder Eyal Hertzog before being brought to life by the DAPP Network community. More information on the concept can be found in the BBS whitelist proposal.
This sharing of the burden of IL protection significantly reduces the risk being taken by Bancor for co-investing 500k BNT. We also hope that by providing our own IL protection, we are helping set a new precedent for future projects whitelisting on Bancor, which will lead to even more cost and risk savings to the network.
Open Source the Native Token IL Protection Mechanism
The DAPP Network plans to make this innovative reward mechanism open source, so that additional projects can easily and safely follow in its footsteps.* As liquidity is injected into promising low market-cap projects and initiatives, numerous tokens will be available for trades at lower slippage on Bancor. Since these projects can use the DAPP Network’s solution to cover impermanent loss protection using their native token, the co-investment risk for Bancor is significantly reduced while the potential benefits are maintained. DAPP Network is proposing a win-win liquidity bootstrapping solution for all parties, which we hope will help usher in a new generation of liquidity innovation and stakeholder incentive alignment for the ecosystem.
vBNT Voter Incentive DeFi NFT
vBNT holders voting on this proposal will be incentivized with an NFT which may have a future utility that allows it to be staked by DAPP LPs to amplify their mining rewards on Bancor. This will give the NFT inherent value for DAPP LPs who wish to maximize yield. The code to enable this gamification mechanic will be open sourced to allow for other liquidity pools on Bancor to adopt it for creating their own DeFi NFT incentives to drive even more liquidity and engagement to the network.
Every voter is to be rewarded regardless of their vote.
NFT rewards will only be distributed if the proposal reaches the quorum.
Token Security
The DAPP token contract is a standard ERC20 token from the OpenZeppelin library. Neither the DAPP token contract on its originating chain, nor any token bridge contracts utilizing the DAPP token, have permissions that grant administrators unrestricted mint/burn capabilities.
Community and Communication
Off-Chain Vote
FOR
6.63M 99.7%
AGAINST
21.49K 0.3%
Timeline
Jul 26, 2021Proposal created
Jul 26, 2021Proposal vote started
Jul 29, 2021Proposal vote ended
Oct 08, 2025Proposal updated