I am a long-term REN holder, but only recently beginning to get involved in the DAO community’s processes. I represent myself, an individual, with an interest in REN and Bancor community’s.
I have come here looking for comments, assistance and advice for a proposal I would like to make to the Bancor community to extend their current REN/BNT Liquidity Provider incentive program.
The Bancor Network consists of a decentralised network of smart contracts (liquidity pools) allowing peer-to-contract trades in a single transaction with no counterparty. With the introduction of v2.1, Bancor has provided Liquidity Providers (LP) protection against Impermanent Loss (IL), occuring when market volatilty causes pricing to steer too far away from the staked price. This makes it far safer and viable for token holders to stake their value on Bancor’s network.
In November 2020, Bancor began a rewards program which will last for a period of 72-weeks. The rewards program further incentivizes LP’s. REN protocol was selected as one of the initial tokens with their REN/BNT Pool. The reward programs need to be renewed by governance.
As as result of this added protection and incentive programs, swap volumes on Bancor have increased substantially and Bancor are wanting to build on this increase by collaboration with token community’s. As an example, please see the collaboration they are currently doing with OCEAN protocol: A Wager From the OCEAN LPs - Bancor Governance Forum
Bancor have a supportive community, helping and guiding both new and experienced users on to their network. I feel both REN and Bancor communities can benefit collaborating together. There is already interest from existing REN token holders at Bancor to extend the rewards program. With this message I am hoping to open discussion between the REN team / community and Bancor for this extension, and possibly future mutually beneficial projects.
I have written a draft proposal I wanted to present to the Bancor community, however it really lacks the substance needed for a proper argument (see draft here: REN/BNT_Extension_Proposal - Google Docs). Proper Market Analysis and how added Liquidity can provide benefits to both Bancor and REN stakeholders would be useful to provide in the proposal.
Community members from Bancor seem keen to provide more information and make these collaborations happen.
Please let me know your thoughts and if you have any interest from your side to participate in this.