Summary There is currently 480,000 APWine Worth of Space in the Bancor Pool. Bancor provides the treasury with two key features Impermanent Loss Protection and Single Sided Staking. This will mean the DAO is guaranteed a return on it’s investment, will need to provide no counter asset like ETH, and will grow the depth of APWine Liquidity by just under 1M USD (50% BNT from Bancor DAO/ 50% APW from APWine DAO)
Context
Bancor is a DEX with over 1 Billion USD in TVL. The Core product offerings are Single-Sided Staking and IL Protection which make it the optimal solution for DAO sourced Liquidity. The DAO would be opening up a new and insured revenue stream while at the same time allowing for lower slippage which should allow entry for larger investors.
It’s also worth noting the Bancor Community is well aligned to work with APWine when B3 Launches since single sided LP tokens are a perfect fit for the APWine future yield model. Bancor also has a favorable view of APWine as can be seen by the fact we received one of their rare Liquidity Mining Campaigns. This is not the last we will receive as well, should we choose to launch dual LM on B3 the Bancor DAO has already approved 50,000 BNT to be distributed in the APWine Pool over 24 months.
No need for secondary counter asset. (Single-Sided Staking)
Part of Future LM Rewards contingent on Dual LM Program.
Benefits to Bancor
Boosted TVL.
Greater share of APWine Trading Volume.
Possible Future integrations due to synergies between projects.
Means / Technical Implementations
All that would be required of the team is a simple approve() and addLiquidity() functions on the Bancor APWine Contract.
Hi, Steven from Bancor here. @Tenzent shared this proposal with me and I wanted to add my support.
Firstly, would love to see APWine do this. It has become popular over the past few months as the combination of single sided staking and IL protection just makes sense for a treasury
Could you edit and add a poll to your post so we can have a vote here to gauge interest in this sort of proposition? I like the idea as greater liquidity depth, IL protection, and further integrating ourselves into the decentralized economy are always great pluses.
Just to clarify, in the scenario proposed, the APW DAO would send 400k($408k) APW to Bancor in which Bancor would provide the other $408k in BNT? Thus allowing users to do ETH->BNT->APW or vice versa? Bancor would also cover any impermanent loss the DAO suffers from the pair as well?
If these are all the case, then I see no problem with such an arrangement. Increased liquidity is always positive because it allows larger positions to be taken and increases the flexibility of the token.
I don’t seem to be able to add a poll, perhaps there is a setting on the governance forums that prevents one from editing original posts. and to your clarification, yes that is correct. Think of it like Ondo Finance except the primary asset (AKA the one that is covered from IL) is APWine and there is no fixed time period.
