The Bancor DAO approved several key proposals in governance this past week.
Re-enable deposits on-chain
In response to growing demand from a handful of DAOs, the Bancor DAO voted to re-enable liquidity deposits exclusively on-chain.
DAOs and LPs wanting to utilize Bancor’s single-sided liquidity and external liquidity protection mechanisms to build liquidity for their tokens can now do so by providing liquidity directly via smart contract / on Etherscan (guide).
Warning: Make you sure understand the risk of providing liquidity on Bancor while BNT distribution is disabled; liquidity deposits are affected by vault surplus/deficits immediately upon deposit. Read more on the mechanics and check if a pool is in surplus/deficit at analytics.bancor.network.
Grow trading liquidity in targeted pools
Proposals passed to create/increase trading liquidity for the USDT, PHTR, CROWN and MONA liquidity pools. The updates are aimed at increasing volume and therefore fee revenue which translates to more vBNT burning. vBNT burning locks BNT in the protocol and overtime can help with building token surpluses on the network.
A new proposal posted this week to governance and scheduled for voting this Sunday seeks to increase trading liquidity to the maximum level for 18 more whitelisted Bancor V3 pools.
The new Bancor V3 simulator (released last week) is being used to run studies on the potential effects of trading liquidity optimizations. Protocol metrics can be tracked in the new analytics dashboard.
Other proposed upgrades in the discussion phase:
To help rebalance token reserves on the protocol, the Bancor DAO previously increased the rate at which fees are used to buy BNT and burn vBNT. 90% of fees on Bancor V3 are being used to buy BNT (as of July 23), while 100% of fees on Bancor V2.1 are being used to buy BNT and burn vBNT.
vBNT burning surpassed 4M vBNT burned this past week, with burning hitting all-time highs in July.
- Analytics provider Candlestick integrated Bancor trading and liquidity data into its product.
- Crypto research firm Messari released a fully-indexed Bancor Protocol subgraph and will use the subgraph to integrate deeper Bancor analytics into its products.
- A new dashboard for protocol analytics allows the community to better track network health. See the roadmap for the next features, or submit feedback here.
- The Bancor V3 Simulator, which was released last week, is a state-of-the-art research tool that aims to assist in the design, testing, and validation of new features, protocol updates and Bancor tokenomics.
- Update the infrastructure to reduce dependency on the backend API and make it more standalone (WIP)
- Updated displayed APRs to reflect the fees breakdown and improved the associated tooltips
- Refactored modal popup management to properly support stacked modals
- Fixed UI issues (table filters, dark mode text)
- Added new fiat on/off ramp providers (onJuno, Transak)
- Completed testing & deployment of the latest changes
- Paraswap (WIP)
- Integration research — Airswap, Cowswap, 0x API
- Historical APIs (WIP)
- Added network fees to the APIs
Other Governance Proposals:
Posted on Bancor DAO Discourse
Level 1 Proposals Under Review:
Join the Bancor community call this Sunday at 3pm on Telegram voice chat these and more community updates will be discussed.