The Bancorian | A Weekly Summary-November 7th, 2021

9 min readNov 12, 2021

💻Development

The current development of V3 is progressing quite well and audits are underway. We will have more details on November 29th at the end of the month.

We have posted a pull request to the public contracts repository in our GitHub account. The code shared will facilitate the migration of liquidity from pool stakes in Bancor V2.1 to V3. The code is starting to get integrated into our existing platform and we are trying our best to make the migration as smooth, seamless, and cheap as possible for liquidity providers.

Also being worked on concurrently is a mechanism that would alleviate the cost of restaking $BNT rewards. Currently, $BNT rewards accrue in a single rewards contract and restaking rewards effectively pulls rewards from every pool where a stake exists. We are looking to grant LPs the ability to restake rewards from an individual pool. Since there are fewer calculations that need to happen and pools that the contract needs to read from, the cost of restaking should come down. In terms of broader gas savings, these are expected with the release of V3.

New UI screens have been pushed to the beta interface that we are looking to get feedback on. This includes:

A new pools🤿
A new voting interface🗳
A new tokens page💰
A new portfolio page📒
A new safe staking landing page✅

These new interfaces are being added to beta.bancor.network which is powered by our new APIs and performance will be faster. We will eventually shift the entire web app over to the new, faster interface.

🌐Ecosystem

🌀Bancor Vortex🔥

For this week, we saw roughly ~125K in $vBNT that was burned by the vortex. At current $BNT prices (~$4.50) this equates to ~$562K worth of $BNT locked forever.🔒

+-----------------+--------------+
|      time       | burnedamount |
+-----------------+--------------+
| 10/31/2021 0:00 |  40392.65983 |
| 11/1/2021 0:00  |  16865.18834 |
| 11/2/2021 0:00  |  6822.368112 |
| 11/3/2021 0:00  |  14226.66259 |
| 11/4/2021 0:00  |  24784.72395 |
| 11/5/2021 0:00  |  5776.288511 |
| 11/6/2021 0:00  |  16611.81676 |
| Sum             |  125479.7081 |
+-----------------+--------------+

The cumulative burned amount increased from ~1.428m on 10/30 to ~1.554m on 11/6.

📊Key Metrics

7-day total cumulative fee revenue: ~1.4m

30-day total cumulative fee revenue: ~$4.8m

Source: token terminal

📈 The average daily revenue for different time periods:

7 days ~$200K
30 days ~$160K

The 30 days annualized daily revenue equates to ~$58.4m in annual trading fees paid to LPs. For the past 30-days, trading fee revenue is up (~$500k) as compared to the previous 30 days.

💰 In terms of protocol revenue, Bancor earned around ~$2.46m in monthly revenue for $BNT holders. It is ranked the 10th lowest by Price to Sales (P/S) ratio compared to other crypto projects

🔌Integrations and Updates

This past week our volume has been up across the board. The $vBNT burning mechanism has accelerated quite quickly since the vortex burner was raised to 15%. We have also seen a lot of pools with natural organic APY over 30% throughout the week. We are starting to see swap fees be sustainable for those LPs without any rewards being provided to those pools.
We are looking to raise the fee back to .1% on the ETH pool from the current .05%. Mark recently looked at the ETH-BNT pool data and found no correlation with lower fees (.05%) leading to more volume. One should note that these changes coincided with large changes in volume across the entire ecosystem (most recently, the metaverse/nft/gaming related tokens). The data is far too noisy and it is hard to learn from it. In fact, some of our best days were when the fees were higher.
We announced last week that we will be sharing the details for Bancor V3 phase 1 on November 29th. We will share the specific details on the timing and live stream in the coming days. We are super excited to rally the community around the V3 phase 1 release.
The APWine team has a proposal live on governance to run liquidity mining on the $APW-$BNT pool in exchange for pointing their token buyback program to Bancor. This will be the fourth/fifth project to point their token buyback to our pools. It is a great way to signal support for Bancor and also drive more volume to their pool which in turn drives more yield for their token holders who are staking on the pool.
We have pushed new landing pages that reflect our revamped branding. We will effectively start pointing users to these new landing pages in an attempt to convert them to liquidity providers and traders. We are hoping to take users from our different campaigns and educate them about the Bancor protocol and application.
We are almost done with our study on impermanent loss on Uniswap V3 and are looking to publish it in the next few weeks. We found that a large portion of liquidity providers on Uniswap V3 are losing money. It has been a huge effort within our analytics and econ team to get these numbers and it will be a real first of its kind that will expose the risks of IL on Uniswap V3 and generally in concentrated liquidity AMM pools.
We are working on integrating POAPs as part of governance to encourage participation and engagement in the DAO. There are some cool designs being worked on behind the scenes for the community and in the future, we might use POAPs for raffles.

💪Social Channels

🌅A new dawn, A new beginning

As we are getting closer to the end of the month when more information about Bancor V3 phase will be revealed, we are already starting to get a glimpse of what that will entail. From the Beta interface to the new branding in the landing pages, things are looking sharper than ever. Additionally, all indications suggest that everything is going as planned and the team has already pushed the code that will facilitate the migration. I couldn’t be more excited for what V3 will have in store for us. 🤝🍕

🎲Random Musings

While V2.1 has its shortcomings, in the grand scheme of things it is still quite revolutionary for what was offered when it launched and even now. Most recently, we are starting to see new protocols emerge that have borrowed some of the design principles from V2.1. None of them come close to the complete solution that Bancor provides and they fall short on many levels. If you have been around in the community, you have heard by now that V2.1 was never quite finished completely and was quickly pivoted to after the shortcomings in V2.0. For all intents and purposes, V2.1 was never meant to be our final form 😏.

The Bancor DAO is highly involved every week in crucial governance matters. We have our fair share of whitelisting that occur in addition to defining co-investment, pool fee, and reward parameters. This means that $vBNT holders have an important role to play in governance as decisions have an economic impact on the protocol. Our friends from xToken recently wrote about a series of proposals in the Bancor DAO and the reasoning behind their voting preferences.

If you are vortexed 🌀🔥, make sure you are keeping an eye on the rate as we have been burning more $vBNT in recent weeks after the vortex burner was increased to 15% of network swap fees.

Some tweets from the official Bancor account in case you missed them

🎩Bancorians in the Wild

A collection of weekly tweets from some of the greatest Bancorians🧠💪

☑Governance

👈Previous Proposals

This past week (10/31/21), we saw three proposals on snapshot and a temperature check:

None of the proposals were able to meet quorum requirements.

👉Current Proposals

For this week (11/7/21), we have two proposals on snapshot for voting:

Head over to snapshot to cast your votes.

❗If you aren’t voting regularly make sure you unstake your vBNT from governance and delegate instead. Self-nominated delegates maintain a page on Discourse to inform other community members of their intended voting behavior. If you disagree with the way your delegate votes, you can always vote manually to override their decision on your behalf.❗

☎Bancor Weekly Call

In this week’s Community Call recording, Bancor shared the development updates above and featured the APWine and Railgun teams to discuss collaborations with the Bancor ecosystem.

Gaspard from APWine (02:10)

The upcoming APWine V1 will have performance fees for token holders and a planned buy-back mechanism; Bancor is their preferred AMM to provide liquidity thanks to single-sided staking and impermanent loss protection.

Currently, there’s a large SUSHI pool, and APWine is willing to bootstrap a Bancor pool as well as offer external LM rewards from their side in V3.

An update from Railgun

The Railgun proposal went live last week to a lot of concern from the Bancor community — it subsequently failed to reach quorum.

There has been one individual raising concerns about privacy on Railgun for a while, and the Railgun team can confirm that there’ll be no link to your address on Etherscan when you perform transactions using Railgun.

Q&A (21:20)

Are we leaning towards a particular L1 or L2?
It’s for the DAO to decide. Many in our core community favor Avalanche as an alternative L1 to Ethereum; Solana is attractive but not EVM-compatible so may take a bit longer to migrate to. Anybody is free to propose a migration to any chain on gov.bancor.network. That said, chains like BSC have the issue of not hosting many tokens worth whitelisting.

We are also close to the Polygon team and should be able to get MATIC incentives for using it as an L2.

Will V3 change the way the DAO works?
There’ll be a slight change, but we will discuss it on 29 November.

Will Bancor’s presence at the DCentral conference in Miami be recorded?
Yes.

🤝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.

📔Bancor Grants:

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.