ICHI Proposal for Bancor V3

Summary: -Provide 50,000 BNT worth of Legacy ICHI as rewards for migrating LPs (also matched by Bancor with BNT) -Provide 50,000 BNT worth of ICHI as rewards for ICHI LPs (this will be matched by Bancor with BNT as well)* -Provide 150,000 BNT worth of ICHI for External Impermanent Loss Protection*

Detail: At the end of 2021, Bancor announced its new V3 platform. This new platform has exciting updates, including instant Impermanent Loss Protection and Dual Liquidity Rewards for whitelisted tokens.

You can learn more about the updates here: ​​https://support.bancor.network/hc/en-us/articles/5416740923026-Introducing-Bancor-3

As close partners with Bancor, the ICHI DAO has decided to strengthen the partnership further and provide a use-case for the upgraded ICHI token. A whitelist will enable 800,000 BNT worth of ICHI to be deposited (single-sided) to Bancor v3 to earn fees. Additionally, ICHI will need to provide external impermanent loss protection. What this means is that ICHI will participate in covering some of the impermanent loss from the volatility of the ICHI token. The External “IL” protection deposit is only valid for a year. After a year, ICHI has the right to pull back 75% of the ICHI deposited there.

Actions to be approved: -Provide 50,000 BNT worth of ICHI as rewards for Bancor v3 pool -Provide 50,000 BNT worth of Legacy ICHI as rewards for Bancor v3 pool -Provide 150,000 BNT worth of ICHI for External IL Protection for the ICHI pool

Benefits for ICHI: -Single-sided deposits of ICHI to earn Dual Liquidity Rewards (ICHI and BNT) -Direct Impermanent Loss protection -New AMM liquidity of ICHI

Drawbacks: -ICHI provided as IL Protection could be 100% used up

*This will go into effect if passed by the ICHI DAO and Bancor Governance

Voting details: Yes = Expand partnership with Bancor No = Do nothing