In this week’s Community Call recording, Bancor shared the development updates above and answered questions from the community.
Experimental stablecoin pool fees
We’re running fee change experiments in the stablecoin pools to systematically challenge the incumbent opinion that low fees maximize trading volume. This stems from an imperfect understanding of where protocol revenue comes from; if you can’t capture the value associated with that volume then you’re not achieving anything.
We are looking for the highest value captured to volume generated ratio, which already we outperform competitors on thanks to our IL protection. At the moment, we’re moving around between 0.1% to 1% in trading fees — at the moment, there is no evidence to suggest that raising fees lowers trading volume, hence we’re experimenting with higher fees. In fact, the 1% fee on USDT back in 2020 has seen the highest protocol revenue out of the 3 stablecoin pools so far, so we’re experimenting with a return to that figure, and setting the DAI pool at 1.5%.
Incentivisation of Bancor3 with LM
This proposal is an addendum to an already-enacted vote, extending the cutoff date from March to April reflecting a slightly later release schedule for Bancor3. The rules remain the same — there’ll be a 24-month emission schedule for the rewards, this time with dual rewards allowing for external teams to provide their own rewards alongside BNT.
Treasury deposits on Bancor
Bancor is already the default home for a number of projects including Yearn, UMA, KeeperDAO, Barnbridge, Paraswap, Harvest Finance, Saffron Finance and Idle Finance. During the DeFi 2.0 ‘era’, there was increased awareness of the fact that idle capital should be stored productively, giving rise to a large amount of interest in using Bancor3’s pools for this purpose.
KeeperDAO is looking to build out a more thorough integration with regards to ROOK staking on Bancor3, coinciding with a larger bequeathment of their DAO treasury.
Will user funds on v2.1 be automatically migrated to V3?
No, you will have to do that yourself with the one-click gas-optimized migration. We as a protocol cannot touch user funds and never will be able to.
Will Bancor3 change the governance contract structure?
This is unlikely at first, so vBNT staked there will be used to vote in Bancor3 as well. You don’t need to unstake vBNT to migrate from v2.1 to Bancor3 either. You will need the same amount of vBNT to later withdraw your liquidity in V3.
Are there any upcoming governance proposals related to the Bancor3 launch?
Mark will prepare them soon — once they’re up, they’ll be on Discourse for at least 2 weeks and everything we need in terms of governance approval can go into a single vote on a big proposal including all parameters.
🤝Connect Projects with Steven, Bancor Business Development Lead:
- Are there tokens you’re holding that we should whitelist on Bancor? DM @FoxSteven about it or connect us with any community leaders/core contributors on the project. Steven leads all our BD efforts and will connect with the team and work with them to get whitelisted or build a deeper pool.
- We have content grants active at all times. Any users that want to create videos or guides, please reach out to Nate Hindman (@NateHindman on Twitter or telegram).
- We have analytics grants. If you want to work on Bancor data projects or if you are good with working on blockchain data and APIs, we can always use your help!
- As always, we have rolling developer grants for those who want to build and innovate on Bancor’s infrastructure.