Apply for Bancor Whitelist & Seed KRAUSE/BNT Liquidity Pool

---

TITLE: Apply for Bancor Whitelist to Seed $KRAUSE Liquidity Pool

PROJECT LEADS: Kris C.#2965 & Magnus#3558

---

GOAL OF PROJECT:

To undertake the Whitelist process to become approved to host an LP Pair on Bancor and seed the KRAUSE/BNT Pool.

BACKGROUND:

There is no official LP that has been seeded by Krause House DAO on any AMM. There is only an unofficially seeded LP on Uniswap V3.

WHY THIS MATTERS:

Currently, on Uniswap-V3 there is ~$47.8k worth of liquidity for KRAUSE/ETH, unfortunately, even if community members wanted to provide liquidity with their KRAUSE and ETH, they would have seen horrifying IL over the last ~1month.

We propose that KRAUSE apply for whitelisting from the Bancor DAO, and request a 500k $BNT (~$1.6m) co-investment from the Bancor DAO (subject to DAO vote for whitelisting x co-investment) - this would allow the KRAUSE token to have deeper liquidity.

Another unique advantage to LP’ing on Bancor is that the protocol has an amazing program wherein users who LP, do not suffer from IL whatsoever. There are also some additional benefits once Bancor V3 is released later in January, which protects LP’s from IL from Day 1.

In doing so, Krause House DAO deepens its liquidity and protects its community by offering it the best option for liquidity provision in DeFi.

HOW THIS WILL BE DONE:

Once whitelisting is approved (if approved), the treasury would bootstrap the pool with 1,000 BNT worth of KRAUSE (1 BNT at $4.33 = $4,330, so $4,330 worth of KRAUSE).

Snapshot for any proposal goes live every Sunday morning at 11:00 am EST. Voting is open until Wednesday at 2:00 pm EST. 1-2 days after the proposal passes, Krause House DAO treasury will bootstrap the pool.

TIMELINE:

If this proposal is to pass quorum, the team outlined in this document shall push for the whitelisting process at their discretion.

BANCOR - What is it?

Bancor introduced the first AMM on Ethereum in 2017. Bancor V1 was designed to solve the liquidity problem where thin order books struggled to guarantee liquidity to investors on either side of a trade. The success of AMM’s exposed some key downsides to Liquidity Providers such as Involuntary Token Exposure and Impermanent Loss.

Bancor V2.1 offers a solution to the above-mentioned problems:

1. Single-Sided Exposure
2. Impermanent Loss Insurance

More details can be found here.

Bancor V3 promises to have even more beneficial features.

DEFINITION OF SUCCESS:

• Krause House to become whitelisted and have the support of Bancor DAO
• Create our own LP on Bancor for the KRAUSE Token
• Will be able to proceed with other Treasury affiliated initiatives once LP has been seeded

RISKS:

• Could be a steep short term price drop from misaligned participants selling
• There may be some time delay on the whitelisting process - Delaying some progress with other Treasury initiatives

TEAM:

• Kris C
• Magnus
• Mario Lopes
• Motif
• Flex Chapman

DISCLOSURES:

Kris C works for a crypto fund, that actively contributes to Enzyme Finance and he personally contributes to the Bancor DAO Marketing Council.