Should the Treasury fund the TEMP/BNT Bancor pool with ~$750k of TEMP?

GM.

We have recently published a proposal on the Bancor Governance Forum (https://gov.bancor.network/t/proposal-increase-temp-trading-liquidity-to-500k-bnt-from-100k-bnt/ 2) to increase the BNT liquidity limit from 100,000 BNT to 500,000 BNT in the TEMP/BNT pool on Bancor.

At today’s rate (4 March 2022, BNT = $2.34), this opens up the pool for approximately $936,000 worth of TEMP tokens.

In summary, we have done so to make the Bancor pool more competitive in terms of slippage with our Uniswap and Balancer pools.

In conjunction with this proposal, I would suggest that we use $750,000 worth of TEMP from the Tempus Treasury to provide liquidity to the TEMP/BNT pool. This leaves sufficient room for other TEMP holders to also deposit into the pool if they wish.

Why?

• It reduces slippage on Bancor, and makes TEMP more tradable due to lower slippage.
• TEMP is sitting idle in the Treasury, and this is a great way to put idle TEMP to “work”.
• Due to the core value proposition of Bancor, the deposited TEMP is protected from impermanent loss - the Treasury is guaranteed to make trading fees.
• It does not increase circulating supply as TEMP will be held by the Treasury (Treasury held tokens are excluded from the circulating supply, regardless of whether they are staked or used to provide liquidity).
• It increases the long term cooperation between Bancor and Tempus.

Of course, execution of this proposal is also subject to the passing of the Bancor proposal - more details here: https://gov.bancor.network/t/proposal-increase-temp-trading-liquidity-to-500k-bnt-from-100k-bnt/3442.