Bancor Weekly Update Report: divert fees to restoring TKN reserves, optimize fee-burning parameters, expand fees from trading and deploy additional fee-earning strategies and products.

1. Fee Allocation

Following a feedback request on governance, discussions are underway on various recovery models — the Yield Throttling model, the DAI model, and the Protection model. A technical document was published on Thursday comparing the 3 models.

These initial models are intended to spark discussion in the DAO around recovery measures and are expected to continue evolving and being iterated on.

2. Fee Burning

Bancor Weekly Update Report, To further bolster TKN reserves, the DAO implementing a large increase in the rate of BNT buybacks and vBNT burning. Currently, 100% of fees on Bancor V2.1 are being used to buy BNT and burn vBNT, and 30% of fees on Bancor V3 are being used to buy back BNT. These forces help restore TKN reserves across the protocol.

3. Fee Generation

The following are being researched and analyzed to expand fees on the protocol:

• Dynamic fees
• Liquidity Optimizations
• Native lending/borrowing with protocol liquidations & margin trading
• Protocol arbitrage
• Integration with off-chain market makers to offer trading of any token
• Token launchpad (IDOs)

4. Analytics

An interactive dashboard is in the final stages of data verification and will offer:

• Customizable visualizations of protocol data supported by Tableau’s JS API
• Fast queries and data collection directly from protocol events & APIs
• Initial graphs: trading liquidity, volume, average size per trade, fees, average fees per trade, trade count, price, surplus/deficit, and surplus/deficit %

5. Current Proposals in Governance

Numerous governance proposals focus on protocol recovery are being discussed in the Bancor DAO Discourse.

Passed:

• Proposal: Set the Bancor V3 Vortex to 90%: Giving the foreseeable changes on the protocol, it’s proposed to advance the Vortex to 90% once proposal has passed.
• Proposal: Approve BAND, SAO, JRT, SRM, CEL, KNC and RUNE pools with Zero funding limit in V3
• Proposal: Temporary Reduction in ICHI’s Liquidity Threshold

Level 1 Proposals Under Review:

• • Proposal: only DAO can receive vortex rewards
  • Proposal: Limit on-curve liquidity to max(520 x 7 day fees, 100k BNT)
  • Proposal: Limit the trading liquidity of the Link Pool and start a strategy to optimize our liquidity

About Bancor 

Bancor is only DeFi trading and staking protocol with Single-Sided Liquidity.

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