The Bancorian Brief | February 8th, 2022

Glenn

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5 min readFeb 8, 2022

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💻Development

Work progressing on the B3 contracts
Finalizing details of the public bug bounty and will announce it soon
We will share more info on the proposed B3 roll-out and migration plan ahead of the release
We can now announce that we are planning a public review of the open-source code in conjunction with a live public bounty during which a number of capped pools will be deployed for a few weeks, followed by the full launch with front-end support. Stay tuned for more details.

💪Community

ETH Denver Feb 11–20 — sponsoring & will have community members in Denver all week. Please, message us if you’ll be there so we can meet, give you swag and a covid-compliant hug.
As you’ve probably noticed, we’re doing way more Twitter Spaces AMAs and finding that it’s an incredibly effective way to onboard, educate, and re-engage new communities. You can always listen to the recordings if you miss a call. The schedule this week is: Nexus Mutual (tonight at 9 PM EST), LinkPool (Monday 3 PM EST), Request Network (Wednesday 9 PM EST), Crypto Plebes (Thursday 9 PM EST)
18 POAPs have been issued so far — a reminder that POAP holders qualify themselves for future incentives on Bancor, and we have a surprise coming soon for Bancor POAP holders, so stay tuned.
We have now had over 300 proposals go through Bancor DAO governance, which can be checked on Boardroom: app.boardroom.info. Bancor is now ranked the 2nd most active DAO by proposals, and the 6th most active by a number of votes.
EPNS is launching more Bancor-related alerts soon
Already starting to see DAOs approve third-party rewards on Bancor 3 pools; the latest is Airswap, with many more on the way. This will be a key mechanism to attracting users outside of the Bancor community to B3.
New full-time contributors joining the data science & marketing teams — including former VP marketing at Crypto.com

🌐Ecosystem

🌀Bancor Vortex🔥

This past week, we saw roughly ~43K $vBNT that was burned by the vortex. At current $BNT prices (~$2.50) this equates to ~$107K worth of $BNT locked forever🔒

+----------------+--------------+
|      time      | burnedamount |
+----------------+--------------+
| 1/31/2022 0:00 |  6884.716679 |
| 2/1/2022 0:00  |  5104.925711 |
| 2/2/2022 0:00  |  3050.832223 |
| 2/3/2022 0:00  |  8147.005899 |
| 2/4/2022 0:00  |  5545.061052 |
| 2/5/2022 0:00  |  9943.751379 |
| 2/6/2022 0:00  |  4382.333287 |
| Sum            |  43058.62623 |
+----------------+--------------+

The cumulative $vBNT burned amount increased from ~2.32m on 1/30 to ~2.36m on 2/6.

📊Key Metrics

7-day total cumulative fee revenue: ~$418.1K

30-day total cumulative fee revenue: ~$3m

Source: token terminal

📈 The average daily revenue for different time periods:

7 days ~$59.7K
30 days ~$100K

The 30-day annualized daily revenue equates to ~$36.5m 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 ~$1.5m in monthly revenue for $BNT holders.

🗳Governance

Proposal: Gradually increase the trading liquidity limit in the wNXM pool from 2M BNT to 10M BNT in 1M BNT increments
This will allow for wNXM proposed DAO treasury funds to be staked on Bancor.
The Nexus Mutual DAO is eager to deposit a portion of its treasury into Bancor as it is one of the most performant pools and consistently drives high APRs
We are gradually increasing the trading liquidity to monitor pool depth and volume
This shows more of the top DAOs selecting Bancor as the premier liquidity provider solution for their treasuries. Both SHEESHA and Request Network treasury deposits are coming and many more (30+) are scheduled for Bancor V3.
We’ve discussed a lot recently the benefits to DAO treasuries of Bancor’s single-sided liquidity and IL protection. But they also offer key economic advantages for DAOs in that Bancor pools allow token holders to provide liquidity while also staking a token natively
With B3 launching the industry’s first single-sided pool tokens, we’re seeing a growing interest in using Bancor pool tokens as a form of native staking collateral.
Important: Bancor single-sided pool tokens solve a major pain point for protocols with native staking functionality in that they want both external liquidity in the native token, but also users staking the token natively in their protocol. Legacy pool tokens can’t work for this because they can drop below the native token value, but Bancor 3 single-sided pool tokens only rise relative to the underlying token value, so they are a perfect fit for this use case.

Other proposals:

We will share data on the latest fee updates on Bancor as part of our efforts to further optimize fees for liquidity providers.