The Bancorian Brief | March 22nd, 2022

This post was originally published here

The current Bancor 3 smart contracts are under review by PeckShield with an estimated completion time in the first week of April. No major issues have been uncovered and the current focus is on the withdrawal logic which has some complex math involved. In addition to PeckShied, OpenZeppelin will start code review this week and we are estimating the audit to complete in the second half of April.

Assuming things go as planned, we are planning on rolling out the Bancor 3 beta in the first week of April. At this point, we will be opening the Bancor 3 code repository to the public and launching a $1m bug bounty program. The beta will go live with four pools ($BNT, $ETH, $LINK, $DAI) and will have a $60m liquidity cap that will be gradually increased over the course of four weeks. We will incentivize the beta with 140K in $BNT rewards or roughly 35K in $BNT for each pool.

Anyone will be allowed to participate in the beta and we will be making instruction available once it is launched on mainnet. We won’t have a frontend available for the beta and interactions will have to be done manually through Etherscan. The beta will be running the full production code with restrictions (infinity pools functionality disabled) in place and full product functionality will be enabled once the testing period has concluded. This means that if you participate in the beta, you won’t have to migrate to production when that goes live. We are estimating the production release of Bancor 3 in late April/early May which will go live with a new frontend, $BNT rewards, and third-party token incentives.

🌀Bancor Vortex🔥

This past week, we saw roughly ~45K $vBNT that was burned by the vortex. At current $BNT prices (~$2.50) this equates to ~$112.5K worth of $BNT locked forever🔒

+----------------+--------------+
| time | burnedamount |
+----------------+--------------+
| 3/14/2022 0:00 | 16296.56933 |
| 3/15/2022 0:00 | 5210.092328 |
| 3/16/2022 0:00 | 6807.753106 |
| 3/17/2022 0:00 | 4082.430766 |
| 3/18/2022 0:00 | 4250.603578 |
| 3/19/2022 0:00 | 4412.576868 |
| 3/20/2022 0:00 | 4225.187923 |
| Sum | 45285.2139 |
+----------------+--------------+

The cumulative $vBNT burned amount increased from ~2.54m on 3/13 to ~2.58m on 3/20.

📊Key Metrics

7-day total cumulative fee revenue: ~$266K

biswap

30-day total cumulative fee revenue: ~$1.45m

Source: token terminal

📈 The average daily revenue for different time periods:

  1. 7 days ~$38K
  2. 30 days ~$48.3K

The 30-day annualized daily revenue equates to ~$17.6m in annual trading fees paid to LPs. For the past 30 days, trading fee revenue is down (~$700K) as compared to the previous 30 days.

💰 In terms of protocol revenue, Bancor earned around ~$725K in monthly revenue for $BNT holders.

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