Proposal : Increase ROOK co investment by 600,000 BNT

Read the original proposal on Discourse

Background Info:

ROOK seems to be performing well.

There is no room in the pool for more LPs

There is no active LM on the ROOK pool

ROOK APY is now over 8.5%

As a ROOK holder, I went to stake my ROOK in the pool but saw there is no room.

Expanding the pool should have the following effects:

1. More ROOK holders can learn about Bancor
2. Deeper liquidity can increase trade share
3. Higher trade share = more fees.

The co-investment here would put us at 1.3M BNT since there is already a 1M minting limit on this pool. Given that there is 1.22M in BNT at the moment on this pool, does this mean that this would only open up roughly ~80K in BNT value on the TKN side?

It looks like at its peak this pool held roughly ~40K rook and we are down to ~30K at the moment:

This probably coincides with the LM ending on this pool.

It is good to note that the owner of this pool recently (~28 days ago) raised the fees from .2% to .5% on this pool as well:

Seems like it might have stunted the volume on this pool? We are only coming into the picture when the size of the trades are ~$18K - ~$19K and only getting 20% of ETH-ROOK trades routed to us:

We are at 50% when trade sizes are greater than ~$420K

and don’t get any larger portions send our way. You hit a 10% price impact at > $750K trade sizes and even at those levels we are still at 50%. This makes sense given that the uniswap + sushiswap combined liquidity is ~7M or roughly equal to us. With that said, we should be capturing 50% of trades at the lower levels which we are not at the moment.