The Bancorian Brief | May 4th, 2022

Glenn

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6 min readMay 4, 2022

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💻 Development

We are in the third week of the Bancor 3 Beta which is open to the community for participation (guide). It has been proposed to end the Beta and launch the full version of Bancor 3 early, on May 11, due to the community’s confidence in the code and the performance of the Beta.
The open-source Bancor 3 has been live on Github since April 10th, and in conjunction with the code release, we announced a $1m bug bounty program. Additionally, the bounty is also listed through Immunefi for anyone looking to submit a bug report.
The first of four audits has successfully been completed and the first auditing firm (PeckShield) did not find any severe bugs. We have three additional audits underway by OpenZeppelin (almost done), Certora and Chainsecurity.
The Beta consists of four participating pools ($BNT, $ETH, $DAI and $LINK) and the capacity requirements have been gradually raised over the course of the past 2+ weeks. We have observed that the community has filled up the space as soon as caps are increased. Bancor 3 Beta is currently at ~$6m in TVL locked.

All pools in the Beta have trading enabled and we have observed over $100K in trade volume so far as arbitrageurs and third-party trade aggregators hook in.

We will be publishing written instructions in the Bancor docs for migrating liquidity from Bancor v2.1 to B3 to observe the initial migration code in action. During the Beta, migration will be only possible directly with the smart contracts or via Etherscan. Once a front-end goes live with the full release, the process of migrating funds from v2.1 to V3 will be seamless on the front-end and gas optimized.
A rough timeline for how rewards will work as we transition to Bancor 3, pending DAO approval.

We are working on finalizing the new Bancor 3 UI which will go live with the full release of Bancor 3. What will be shipped on launch day will be an MVP with most of the main key features. Additional features will be getting added in the weeks following the main launch.

💪 Community

To celebrate the full Bancor 3 launch, we are going to be hosting an online launch party with crypto leaders, giveaways, and a panel discussing DeFi liquidity.
We’re also organizing activities for the community around the Bancor 3 launch, including swag, crypto, and NFT giveaways to incentivize early participation in the new version of the protocol.
We’ve recently seen some incredible community content published covering the pending launch of Bancor 3 launch, and liquidity issues in DeFi:

There is an ongoing video series that is covering the Bancor 3 proposal in an easy-to-understand digestible format. You can catch the episodes below 👇

Part 4b, Part4a, Part 3, Part 2, and Part 1

Proposing Bancor3: A Quick ELI5 (Part 4A)

We are attending a number of conferences in the next two months to engage with the community and drive the adoption of Bancor 3:

Blockworks Permissionless: May 17–19, Palm Beach, Florida. This will be our biggest event of the year and we will have a Keynote presentation announcing Bancor 3.
Chainlink Community Event (Link to be provided), May 27, London, UK.
CryptoValley: June 2–3, Rotkreuz, Switzerland.
Coindesk Consensus: June 9–12, Austin, Texas.

A merchandise shop is currently in the works for the Bancor community and we are looking to make that available as soon as possible.
Recordings of our recent Twitter Spaces:

“Getting Hired in Web3” with AvaLabs
“Filling the DeFi Knowledge Gap” with Palisade Crypto
“Bridging NFTs, Gaming, & DeFi” with Chikn
“Staying Safe in DeFi” with Hacken, RugDoc, Certik & Astar

Upcoming Twitter Spaces:

“Don’t get Doxxed! Preserving Privacy in Crypto” with Signata — May 4th, 8pm EST

🗳 Governance

A number of proposals passed successfully in the Bancor DAO. This includes onboarding proposals, trading liquidity increases, and Bancor 3 related proposals:

We are still working on BIP19 which is meant to address the new whitelisting requirements for projects that want to be onboarded. The new guidelines should streamline this process going forward.
BIP22: The Bancor DAO Multisig has made its way to governance which outlines a list of signers and the responsibilities of the Bancor DAO multisig.
Proposal outlining ending the Beta earlier.
A number of DAOs are taking advantage of the Bancor 3 $BNT liquidity mining reward matching program. The program, which is expiring at the end of May, will match up to 50k $BNT over the course of two years for any project or protocol that offers an equivalent value of liquidity mining rewards in their native token on Bancor.
We are lining up roughly 30+ DAOs that will provide treasury funds to their Bancor 3 pools and offer third-party rewards!

Current Gov Proposals:

🌐Ecosystem

🌀Bancor Vortex🔥

These past two weeks, we saw roughly ~56.4K $vBNT burned by the vortex. At current $BNT prices (~$2) this equates to ~$113K (~$57K weekly) worth of $BNT locked forever🔒

+----------------+--------------+
|      time      | burnedamount |
+----------------+--------------+
| 4/19/2022 0:00 |  3716.066103 |
| 4/20/2022 0:00 |  2799.967941 |
| 4/21/2022 0:00 |  4396.210514 |
| 4/22/2022 0:00 |  5601.147945 |
| 4/23/2022 0:00 |  3583.367252 |
| 4/24/2022 0:00 |  1536.576292 |
| 4/25/2022 0:00 |  5818.763386 |
| 4/26/2022 0:00 |  4144.294379 |
| 4/27/2022 0:00 |  2802.971763 |
| 4/28/2022 0:00 |  5935.296229 |
| 4/29/2022 0:00 |  4363.564816 |
| 4/30/2022 0:00 |  4662.315784 |
| 5/1/2022 0:00  |  3544.244299 |
| 5/2/2022 0:00  |  3536.704788 |
| Sum            |  56441.49149 |
+----------------+--------------+

The cumulative $vBNT burned amount increased from ~2.75m on 4/18 to ~2.81m on 5/2.

📊Key Metrics

7-day total cumulative fee revenue: ~$307K

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

Source: token terminal

📈 The average daily revenue for different time periods:

7 days ~$43.9K
30 days ~$60K

The 30-day annualized daily revenue equates to ~$21.9m in annual trading fees paid to LPs. For the past 30 days, trading fee revenue is up (~$400K) as compared to the previous 30 days.

💰 In terms of protocol revenue, Bancor earned around ~$900K in monthly revenue for $BNT holders.