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 110,000 BOND at current prices.
The BarnBridge DAO previously voted to supply 50,000 BOND to the BOND/BNT pool. This allows the DAO to earn transaction fees as well as any future liquidity mining rewards that may be provisioned for that pool. Moreover, Bancor precludes the risk of impermanent loss for depositors who remain for over 100 days, meaning that the DAO does not need to sacrifice BOND upside in order to earn this yield.
The DAO currently sits on 31% of BOND supply, which is effectively inert. Matching the rest of the Bancor coinvestment will make for productive, risk-adjusted use of this capital. In discussions with members of the Bancor community, they have indicated that they would be willing to support liquidity mining rewards for BOND/BNT should the DAO make this additional commitment. The BNT earned by the DAO in such a scenario would ensure that it has a say in Bancor governance moving forward, which could prove vital as more BarnBridge products go live. Moreover, Bancor v3 will allow for idle yield generation on top of fee revenues and liquidity mining rewards.
A 4-of-7 multisig was established for these types of cross-protocol deployments of DAO funds with the initial 50,000 BOND deposit. Further funds would be directed to this multisig which would then deposit into the BOND/BNT pool.
- Announcement of the initial 50,000 BOND deposit
- Bancor Community Response
- Bancor DeFi Safety Score (3rd Highest)
- Akin on Potential Yields
FOR: Turns treasury BOND into a productive asset, increases liquidity
AGAINST: Opportunity cost, counterparty platform risk
A Snapshot vote will go up for this proposal on Friday the 11th. Please make your case in the thread below, especially if your preference is for a sum in between 0 and 110,000 BOND.