Bancor/BNT

[Anonymous No.21127239]

Summary of good shit from previous thread:

Aave AMA summary

- New pools soon, LINK's pool has been performing well, the Team is running tests on it and "so far so good"

- Asaf on APR and token price:
APR is calculated in the following way:
price 0 (can be from last hour or day)
price 1 (can be from the following price 0 hour or day)
divide price 1/price 0 to extract the diff and multiple it to a year

Each pool includes an internal price feed derived from the simple moving average (SMA) over the preceding ten minutes. On each update from the external oracle, the internal price feed re-anchors to the external oracle and the continuous SMA calculation restarts.
The prices come from trades against the pool. Basically it measures asset prices based on these trades.

- Team is satisfied with v2, but says it's not yet perfect, slippage is a bit higher than they expected. Working on allowing arbs to take advantage of opportunities

- Nate on caps:
"With the first few pools they will be graduated - i.e., go from 500K to $1M. After we're comfortable with results of our tests, than the lid is off. Bye bye caps!"

- On lending with Aave
Essentially a portion of staked liquidity in the pools can be simultaneously lent out on aave, and “unwrapped” for conversions & withdrawals.

So LPs earn lending interest on top of trading fees.

Eg:
1) stake DAI in DAI/BNT
2) 80% of the staked DAI is wrapped and lent out on Aave
3) 20% of DAI is used for conversions
4) if the pool needs more DAI for a conversion it “unwraps” some of the lent out DAI and uses that
5) when a user withdraws their liquidity they withdraw their original DAI stake + trading fees + lending interest - all in DAI

- Nate basically states it was a tough sell helping projects set up their own pool and provide liquidity due to the fear of impermanent loss. v2 made it easier

[Anonymous No.21127248]

- Staking rewards is number 1 priority once v2 is out of beta

- Team is looking into making it possible for US user to access with legal dept

- Nate on insurance:
"we have a $500K LP Protection fund that we're announcing the details of soon"

- Nate on pool fee splits
I can provide liquidity to this pool with %100 exposure to LEND or 100% exposure to BNT.
If I am providing liquidity with lend I will receive fees in LEND
If I am providing liquidity with BNT I will receive fees in BNT

Roughly 50% of fees go to the LEND side of the pool, and 50% of fees go to the BNT side of the pool.

An interesting effect of this 50/50 fee split is if one side of the pool ever has more liquidity, the less liquid side is generating higher ROI, so there is an incentive for LPs to balance the sides out at all times.

- Nate hinting at future pools: "that's a fair assumption - that every Chainlink-supported token will have a V2 pool upon full release"

- How can projects incentivise LP's?
Nate:
Projects can set up staking reward programs on their pools.

They can incentivize the base token side of the pool.

Soon Bancor Protocol will start generating staking rewards via the BancorDAO and those rewards will land on the pool as well. So ultimately, as an LP you stand to generate for "streams" of revenue:

1. trading fees
2. project incentives
3. BNT rewards
4. lending interest (a portion of staked liquidity can be simultaneously lent out on aave, and “unwrapped” for conversions & withdrawals)

[Anonymous No.21127301]

scam