Seeding the BOND/BNT Bancor Pool

Last month, $BOND was successfully whitelisted on the Bancor DEX. In short, this means that the Bancor Network will supply up to one million BNT tokens (~$7M at time of writing) to the BOND/BNT pool as BOND deposits are made. Bancor’s primary pitch is that it subsidizes impermanent loss for liquidity providers who remain staked for at least 100 days. Currently, the BOND/BNT pool stands at $40,000 worth of liquidity and has seen $140 in volume over the past day.

The Bancor community has signalled that it would host a vote to provide liquidity mining rewards for the BOND/BNT pool should it grow to a material size first. For the purposes of this vote, material is defined as >$1M worth of available liquidity. For context, such rewards are currently earning liquidity providers in other pools between a 40% and 80% annualized return through $BNT rewards. You can see an overview here: https://app.bancor.network/eth/data

This Snapshot vote is to assess community support for the following:

• Allocate 25,000 BOND from the DAO Treasury for providing liquidity to the BOND/BNT pool
• Accumulate BNT rewards for the DAO Treasury in the event of a successful liquidity mining vote among the Bancor Network community
• Keep the 25,000 BOND in the pool until such time as the community decides it is no longer of value to do so, past the initial 100 day holding period.

The reasons for doing so are as follows:

• Create additional DEX liquidity for $BOND without diluting existing holders
• Gaining voting power on Bancor would give the Barnbridge DAO the ability to support proposals on Bancor that are in our best interest (e.g future proposals to whitelist jTokens on Bancor)
• Build continued goodwill with communities who have made their preference for Bancor clear (e.g. Chainlink)

Importantly, the allocated BOND will be directed to a core-team controlled multisig address, in order to be able to sign votes as well as stake earned BNT (i.e., technical limitations prevent this being entirely DAO-run today). This would represent the first external governance token accumulation done on behalf of the BarnBridge DAO, with the intention being that this specific “metaprotocol governance” multisig would be handed off to the DAO in the future. Please indicate your support or lack thereof below, and discuss your thoughts or concerns on this thread: