Match the Remaining Bancor Co-Investment

The Bancor community has set aside 1M BNT tokens to match deposits into the BOND/BNT pool. The DAO currently has 50,000 BOND deposited; it has room for another 70,000 - 100,000 BOND at current prices.

This vote will determine whether the DAO will provide BOND to match the rest of the co-investment, as well as to insure the deposit via Nexus Mutual. The following reasons were made in favor of this decision:

• Would allow the DAO to earn yield on BOND (from transaction fees) without risking its upside exposure to BOND

• Would result in significant Bancor community turnout in favor of liquidity mining rewards for the BOND/BNT pool, per conversations with relevant stakeholders

• Would deepen ties with the Bancor community through the accumulation of BNT rewards, on the eve of the launch of Bancor v3

As Speculor of the Integrations Team pointed out in the preceding forum discussion, DAO treasury funds could be used to insure the overall deposit into the BOND/BNT pool for 2.6% annually. This would cost some $100,000 at current prices, to insure nearly ~$4M.

Mark Richardson, an advisor for Bancor, had the following to say regarding this potential decision:

• In short, it is in Bancor’s interests to have a fairly deep source of liquidity for tokens that the community truly believes in. We have found that annexing liquidity on up-and-coming tokens can be of critical importance. If the deepest source of BOND liquidity is on our DEX, then we can drive the majority of volume through our platform, which elevates the profile of Bancor to new communities, and helps to establish a new user base.

• Excellent case studies are WOO and wNXM. In the latter case, controlling a commanding share of the market for a particular token has proven valuable in setting a pool fee that makes liquidity provision highly lucrative; traders really don’t seem too affected by pool fees of 0.5-1% if the slippage compensates for the commission. In such a situation, deep pools become highly performant for both makers and takers, thus satisfying the needs of both halves of the shared platform business model.

• Moreover, TVL is a metric that shouldn’t be taken lightly. The more capital that exists on the Bancor platform, the more attention it receives. Of course, TVL is secondary to volume and turnover numbers in terms of the true performance of the protocol; however, TVL does speak to engagement and general health.

• Speaking only from my own impressions, and not necessarily on behalf of the DAO or passive community members - I have seen this proposal received with enthusiasm on Twitter, and within our telegram channels. I was heavily involved with garnering support for the BOND whitelist status and preparing the community for its decision. I felt then, as I do now, that there is a lot of potential collaboration between our projects. As the Barnbridge platform matures, I expect products such as the jTokens to find a warm welcome inside the Bancor community.