Hello RSR Community,
I have put forth the following proposal Increase Co-investment Limit to 750K BNT on RSR (Reserve Rights Token) Pool in the Bancor DAO to increase the co-investment limit in the RSR-BNT pool. This will allow RSR holders to add liquidity to the pool since currently there is no space. The proposal is set to go live for voting in the Bancor DAO on Monday (4/26). It would be great for any BNT holders (if you have voting power) in this community or members in general to show their support.
For anyone not familiar with Bancor, there are two key features that differentiate it from other DEXes:
- Single-Sided Exposure: LPs can provide liquidity to a pool with single-sided exposure, either in an ERC20 token (“TKN”) or in BNT.
- Impermanent Loss Insurance: Impermanent Loss Insurance accrues over time, by 1% each day, until 100% protection is achieved after 100 days in the pool. There is a 30-day cliff, which means that if a liquidity provider decides to withdraw their position before 30 days passes, they’d incur the same IL loss experienced in a normal, unprotected AMM. If an LP withdraws any time after 100 days, they receive 100% compensation for any loss that occurred in the first 100 days, or anytime thereafter.