BarnBridge DAO Seeds Bancor Pool
BarnBridge DAO successfully deposited 50,000 BOND to the Bancor BNT Pool today following a community vote.
The BarnBridge DAO decided upon seeding the Bancor BOND/BNT pool for three primary reasons:
- Bancor’s automated market maker (AMM) subsidizes the impermanent loss of liquidity providers who remain in a given pool for longer than 100 days. This allows the DAO to actively manage its BOND reserves (~31% of total token supply) without losing its alignment to BOND upside, while still earning transaction fees from the pool.
- The Bancor community voted to match deposits (co-invest) into the BOND/BNT pool, up to 1 million worth of BNT. The 50,000 BOND to be deposited into the pool is currently valued at ~$1.5M; 1,000,000 BNT is currently valued at ~$4.6M. In reciprocating their community’s support, BarnBridge stands a better chance of getting chosen for Bancor’s liquidity mining program.
- As DeFi grows more interconnected, DAOs cannot simply be passive observers of the governance decisions being made on other relevant protocols. By providing liquidity to Bancor, the BarnBridge DAO opens up the opportunity to earn both fees and BNT (pending a liquidity mining vote) that it can then use to build out voting power in the Bancor community.
As alluded to previously, the DAO vote transferred 50,000 BOND to be managed via a Core Team multisig.
- The multisig can be found at: 0x5A21f270492E55Fec2CC78C627618cAE42295695
- Here is the transaction depositing the BOND into the Bancor pool: 0xb3375c3a17111c9432be8d9f70a00245bafe3537c4b6f636cc1db19143365787
Looking forward, this multisig will be used for any such similar DAO initiatives. This will allow the DAO to gain voting power across different DeFi protocols, which can be leveraged via SnapShot votes for particularly pressing proposals. As BarnBridge governance itself evolves, this multisig will then be handed over to whatever executive authority comes to displace the Core Team, a la the Synthetix Council.
What is Bancor?
The Bancor Protocol is a fully on-chain liquidity protocol that can be implemented on any smart contract-enabled blockchain. The Bancor Protocol is an open-source standard for liquidity pools, which in turn provide an endpoint for automated market-making (buying / selling tokens) against a smart contract.
What is BarnBridge?
BarnBridge is a tokenized risk protocol. We build derivative products that allow users to manage exposure to fluctuations in interest rates, market prices, predictive market odds, loan default rates, commodity prices, and a seemingly infinite number of market-based fluctuations.
📰 INFO:
https://medium.com/barnbridge/the-barnbridge-dao-seeds-bancor-pool-with-50-000-bond-e66ca1ec17d2
