The Bancorian | A Weekly Summary-September 12th 2021

10 min readSep 14, 2021

💻 Development

Work continues on Bancor V3 contracts and they are progressing rapidly. We can now announce with high confidence the migration strategy from v2.1 to v3. If you have positions in v2.1 pools and are planning to migrate those to v3 pools (which will offer a number of benefits to LPs and traders), you can expect the following:

We can confirm that v3 will have a 1 click migration. That means that if you have multiple positions within a single pool and across multiple pools, there will be a single function that you can call which will consolidate all of your positions and then transfer those to v3 pools. This functionality to batch transactions will reduce friction and cost to get users to migrate their liquidity from v2.1 to v3 pools.
If you have not yet accrued 100% IL protection on a position, the migration process will accelerate the IL protection to 100%. When your stake is migrated to v3, it will be 100% protected from IL. As a result, the fees and LM rewards that you get on that stake, will be pure profit.
We can confirm that you will not need $vBNT in order to migrate from v2.1 to v3. That said, in order to unstake your position in Bancor V3 you will still need your vBNT.

We are standing by our commitment to make the migration process from v2.1 to v3 as smooth and as inexpensive as possible. 🔨

There are new UI screens that we have pushed out to the beta interface and we are looking to get feedback on. This includes:

A new voting interface ☑️
A new tokens page 💰

Both of 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 our entire web application over to the new interface.

🌐 Ecosystem

🔥Bancor Vortex

The vortex continues burning vBNT and locking BNT in the protocol forever. This week we saw roughly ~85K in vBNT that was burned by the vortex.

+----------------+--------------+
|      time      | burnedamount |
+----------------+--------------+
| 9/5/2021 0:00  |  15674.62085 |
| 9/6/2021 0:00  |  5102.025767 |
| 9/7/2021 0:00  |  15087.82258 |
| 9/8/2021 0:00  |  21069.53259 |
| 9/9/2021 0:00  |  5271.034755 |
| 9/10/2021 0:00 |  11150.30059 |
| 9/11/2021 0:00 |  11640.22637 |
| Sum            |   84995.5635 |
+----------------+--------------+

This was an increase from ~1.051m to ~1.136m from 9/5 to 9/11. At current BNT prices (~$4.00) this equates to $340K worth of $BNT locked forever. 🔒

📊 Key Metrics

7-day total cumulative fee revenue: ~$1.8m

30-day total fee revenue: ~$6m

Source: token terminal

📈 The average daily revenue for the past 7 days has been at around ~257K. 30-day trading fee revenue is up over 43% for the previous 30 days. Annualized, that’s around ~$73m in annual trading fees paid to LPs.

💰In terms of protocol revenue, Bancor is the second largest DEX on Ethereum, with around $2.87m in monthly revenue earned by $BNT holders. It is ranked the 7th lowest by Price to Sales (P/S) ratio compared to other crypto projects.

Left: Protocol Revenue (30 Days) Right: Price to Sales ratio (P/S)

Source: token terminal

🔌Integrations and Updates

Instadapp pool ($INST) was whitelisted last week and it is currently awaiting to be seeded. We expect that this pool will be funded very soon and we are excited to announce its activation as a whitelisted pool shortly.
Harvest Finance pool ($FARM) had its LM extended and it continues to be the highest volume $FARM pool in the DEX ecosystem. It is delivering good APRs to its stakers, make sure to take a look. Stake in the farm pool
Mask Network ($MASK) was whitelisted last week and that pool is currently growing. A bounty was deployed by Mask that would integrate Bancor directly into the Mask trading plugin. Stake in the MASK pool
iExec RLC ($RLC) pool was whitelisted last week and quickly became the deepest pool in the market (over 1.6m in depth as of writing). There is no more space at the moment for single sided deposits on the token side. There is currently a proposal to increase the fees on this pool from .1% to .2% in order to generate more fees for LPs. Stake in the RLC pool
Digitalax ($MONA) pool had a co-investment increase last week in order to add more space for single sided deposits. Current pool depth is sitting at around ~1.1m. Stake in the MONA pool
Marginswap ($MFI) pool was whitelisted last week and the pool has already grown to a depth of over ~500K. Stake in the MFI pool

💪Social Channels

💃BNT-LINK Tee Giveaway

Did you vote on the DIGITALAX proposal last week? The latest Bancor x Chainlink DRIP was given away to three voters 🆓

0x17993eEcc0011F326718d710264A01d68ab01A8F
0xF7A8dc8961687A60326Ae2b576B13822810F5A93
0xCBE45F0Cf97298f4FfEfA6BCe55e6F29fbC03dF9

If you are address is listed above, see below for how to claim your BNT-LINK tee!👕 👇 👇

🎲Random Musings

Another week gone by, Bancorians keep on the grind in the social channels.

The beauty of our platform is that we are capital efficient by letting LPs put their tokens to work and not have to worry about putting up 50% of their capital to LP 50–50 in a pool. Some might not even fathom the idea of selling half of their stack so that they can LP in a DEX and potentially get REKT when their token 🚀 🌕. Seems like $RLC holders agree with the 💰 proposition of our platform and quickly filled up their pool.

A round of applause 👏 for this fellow and his tweet storm. Quite an epic and must read thread. Sir, we salute you 😆 😄 😆 go show him some ❤️ 👇

There is a great staking guide from Staking Rewards for our friends at Harmony Protocol. If you are new and interested in learning on how to stake take a 👀

Nate and Yudi are back from the dead 😱💀😱…don’t miss out on your chance to grab these cool Crypto Plebes NFTs…if you are lucky 🍀 😈

More integrations on the pipeline…looks like we just keep winning 😎. Now where is my V3? 😏

If you missed it, our lead researcher Mark was hosted by Saffron finance as part of their academy podcast. Give it a 👂 👇

Kris Kray is on point with his 📹 content. Watch him explain the 💪 behind our single sided deposits 👀

🎩Bancorians in the Wild

In the jungle, the mighty jungle…OK OK 😆 you know how it goes. Sometimes we can’t contain our big brains and must let loose

☑️Governance

👈Previous Proposals

This past week (9/5/21), we saw a number of proposals on snapshot that were able to meet quorum and supermajority requirements:

Make sure to keep an 👀 out for those pools ($MFI, $INST, $RLC, $MASK) as they are seeded and are enabled for single sided staking with impermanent loss protection.

👉Current Proposals

For this week (9/12/21), there are six proposals currently up 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 three teams to discuss collaborations with the Bancor ecosystem: Eden Network, APWine and Liquity.

An intro to Eden Network (08:37)

“Eden is a priority transaction network that protects traders from front-running, aligns incentives for block producers, and redistributes miner extractable value”.
The Eden Network team are looking to grow their liquidity across DeFi protocols including our own platform. They are proposing a liquidity mining program on the $EDEN pool in Bancor, after having recently made Bancor a slot tenant. This has meant that around 50% of transactions sent to the Bancor protocol are sent to the top priority spot in Eden blocks, which has allowed Bancor users to avoid sandwich attacks, get better price execution, and enjoy faster transactions.
The priority slots are continuously in open, permissionless auction. Eden has a budget placed to keep Bancor in a slot position.
Eden’s proposal on discourse is seeking to introduce LM rewards to the EDEN pool with a 400k co-investment in exchange to retain Bancor’s top priority slot.

An intro to APWine (27:01)

“The protocol allows you to trade unrealised yield. Speculate on the evolution of the yield generated by different DeFi protocols. Hedge your risk on your passive revenue, converting it into futures”.
They are looking for a Bancor whitelisting to make the $APW pool a destination for liquidity providers and to eliminate IL for $APW holders shifting over from other DEXes.
Bancor could be integrated with APWine in such a way that allows for selling yield in advance without IL.

An intro to Liquity (43:09)

“Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Loans are paid out in LUSD — a USD pegged stablecoin, and need to maintain a minimum collateral ratio of only 110%. In addition to the collateral, the loans are secured by a Stability Pool containing LUSD and by fellow borrowers collectively acting as guarantors of last resort. Learn more about these mechanisms under Liquidations. Liquity as a protocol is non-custodial, immutable and governance-free.”
Bancor is considered by the Liquity community the most attractive platform to provide $LQTY liquidity on account of IL protection and the team hopes for it to overtake the Uniswap pool in terms of both liquidity depth and trading volume.
The team are excited to co-create educational content with us to raise awareness of trading and staking on Bancor.

Q&A (55:00)

Regarding the one-click migration, if you have 10 separate stakes in Bancor v2.1, will you have to pay the gas fees associated with 10 separated pools in order to migrate?

Yudi: We’re going to try to make it incur the minimum number of transactions. We don’t have the final numbers for gas costs yet, but we know it’s not going to be equivalent to unstaking 10 positions today — it’ll be much cheaper. Our aim is to create a process that’s as simple and cheap as possible.

What’s the team’s current thinking on Arbitrum deployment?

Nate: Arbitrum has had an encouraging first few days with TVL exploding. Once V3 is out, we will rapidly deploy to an L2, and Arbitrum is certainly a contender.

Mark: TVL isn’t the only metric to measure an L2’s early success, but rather the diversity of sources. Arbitrum is still young, and most of its liquidity comes from one source at present, opening up avenues for exploits during the early days. We need to make sure that any ecosystem we enter is sufficiently distributed and immune to attack vectors. This is not to suggest that Arbitrum will fall victim to this, but greater distribution should remain a pre-requisite.

How will we increase trading volume?

Nate: V3 will be very impactful in this respect, becoming a protocol of first resort for newly launched tokens. There will also be new, advanced trading features (TBD).

Mark: Higher trading volume per se doesn’t necessarily lead to greater profitability. Some protocols have high APYs but their protocols are not profitable, because LPs incur IL and can also be made to bear the cost of slippage when traders place large orders. Right now, Bancor is the second most profitable AMM on Ethereum L1 despite having slightly less spectacular trading volumes. This does not mean that we aren’t working to increase trading volume, just that it’s not the only metric to take into account when determining LP profitability.

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.