💻DevelopmentBancor 3 is coming along quite well and our target date is Q1 of 2022. A big part of Bancor 3 Phase 1 is dual liquidity mining rewards that will allow other DAOs to drop rewards on their pools. As a token side LP you will be able to earn token rewards as well as BNT rewards. One of the key features of B3 is that fees and rewards will auto-compound automatically for LPs and save users gas that would otherwise be spent on restaking rewards.We have launched a new UI for the Bancor web application which is powered by our new APIs. Expect the new UI to be modern, faster, and better than the previous version. The application will continue to evolve as Bancor 3 rolls out and new screens, as well as user flows, will be made available in the future. We welcome any feedback from the community as well as any bug reports.New UI screens are now live on the redesigned interface. This includes:A new pools page🥽A new tokens page💰A new portfolio page📒A new voting interface🗳A new safe staking landing page✅A new impermanent loss landing page ✅A new Bancor 3 landing page 3️⃣🌐Ecosystem🌀Bancor Vortex🔥This week, we saw roughly ~32.8K in $vBNT burned by the Vortex. At current $BNT prices (~$3.25) this equates to ~$106K worth of $BNT locked forever.🔒+—————–+————–+| time | burnedamount |+—————–+————–+| 12/20/2021 0:00 | 3724.667348 || 12/21/2021 0:00 | 3681.439192 || 12/22/2021 0:00 | 7531.76416 || 12/23/2021 0:00 | 4803.231131 || 12/24/2021 0:00 | 3654.590182 || 12/25/2021 0:00 | 2950.653037 || 12/26/2021 0:00 | 6497.408017 || Sum | 32843.75307 |+—————–+————–+The cumulative burned amount increased from ~1.967m on 12/19 to ~2.0m on 12/26. We have hit the 2m $vBNT burned mark❗📊Key Metrics7-day total cumulative fee revenue: ~645.7K30-day total cumulative fee revenue: ~$4.62mSource: token terminal📈 The average daily revenue for different time periods:7 days ~$92.2K30 days ~$154KThe 30-day annualized daily revenue equates to ~$56.2m in annual trading fees paid to LPs. For the past 30 days, trading fee revenue is down (~$1m) as compared to the previous 30 days.💰 In terms of protocol revenue, Bancor earned around ~$2.31m in monthly revenue for $BNT holders.🔌Integrations and UpdatesWe have had large amounts of interest from projects that are looking to drop liquidity mining rewards on their pools. As part of B3, we will be able to support dual liquidity mining incentives on pools and we already have projects that are interested in incentivizing their pools. We are currently working with as many projects as possible to provide liquidity mining on Bancor for the token side and additionally, we are also looking to match up to 50K in $BNT rewards per pool.Recently, we have had a trend of DAOs that have shown an interest in depositing their treasuries on Bancor to earn passive yields. In addition to earning yields, this also lets them build up liquidity for their token and make it viable in the markets. We think this is the best way for a DAO to build up their treasuries as it lets them be the owners of their own liquidity without being exposed to another token or impermanent loss.💪Social ChannelsTwo Million vBNT Burned 🔥, One hundred + Infinity ♾ To GoThis week we hit the 2M vBNT burned mark which means there is now a minimum of 2M BNT locked in the protocol forever. A brief history of the Vortex:1/11/21: A proposal appeared in the governance forum for the creation of the Bancor Vortex. Funded by admin fees, the Bancor Vortex creates a demand for market participants to buy and lock BNT into the protocol, without taking exposure to BNT volatility, creating increased fundamental demand for BNT while expanding the network’s liquidity.A concept that was ahead of its time created a mechanism that locks BNT liquidity into the protocol by burning vBNT (an underlying token that represents staked BNT). This BNT supports trading activity in the network as it can be paired with any single-sided token deposits.2/12/21: A special whitelisting status was required for the vBNT-BNT pool in order to implement the Bancor Vortex.“The process is powered by a constant-product bonding curve between vBNT and BNT.”The Vortex vBNT pool allows BNT LPs to swap their vBNT for more BNT. This is an interest and liquidation-free means of leverage capped at 1x. Additional BNT obtained can be swapped for any supported tokens or deposited back into the protocol as a form of leveraged yield farming.3/3/21: The original Vortex called for a dynamic fee schedule but was found to be too costly to implement:“several problems with the variable burn rate were discovered that make it more difficult and gas-intensive than previously thought.”4/4/21: vBNT Burning is Live!“The vBNT burn rate will become a critical part of the BancorDAO’s flexible monetary policy”The Bancor Vortex vBNT burning mechanism is designed to:Increase locked liquidityReduce the circulating supply of BNTIncrease lending capacity8/29/21: Bancor has now burned over 1M vBNTIt took roughly 147 days in order to reach the 1M vBNT burn milestone since the Vortex went live on 4/4/21. That’s one small step for Bancorians, one giant leap for Decentralized Finance.We currently have a proposal in the Bancor governance forum that is seeking to declare an official Vortex day. This day can be used to raise awareness about the Bancor protocol and Vortex mechanism. It can also coincide with a conference for an IRL event. What do you think? Let us know! — @PrimalGlenn🎲Random MusingsWe have seen other DeFi protocols that are starting to deploy their treasuries on Bancor. This is an easy way for DAOs to earn passive yields on their governance tokens with little to no risk. DAOs can stake single-sided and have 100% exposure to their native token without having to purchase any other asset to LP. This also frees up half their capital if they are market-making already and lets them be more capital efficient. The best part of it all is that their investment is 100% protected from impermanent loss. Here is a current list of DAOs with active deposits on Bancor:UMA: ~$570K (~40K UMA tokens) for the initial deposit (etherscan)Harvest.finance: ~$500K for the initial deposit (etherscan) but now up to ~$2.87m after subsequent $FARM deposits (~17103 $FARM tokens total).Barnbridge: ~$1.4m for the initial deposit (etherscan) but now up to ~$1.7m after subsequent $BOND deposits (~110K $BOND tokens total)Paraswap: $284K for the initial deposit (etherscan) but now up to ~$450K after subsequent $PSP deposits (~1.5m $PSP tokens total)KeeperDAO: $790K (~6400K $ROOK tokens) for the initial deposit (etherscan) — @PrimalGlenn — @NateHindmanA Xmas gift was given to the Bancor community in the form of a thread for vBNT tokenomics in Bancor3. This was brought to us by our very Banclord who shared the following:vBNT will now be required in B3 in order to have access to your BNT rewards.Anyone who has vBNT and bnBNT can now unlock underlying staked BNT positions even if they have never staked BNT before. In v2.1, only the original owner could unlock the underlying BNT positions with vBNT.The vBNT-BNT rate can now be greater than 1 since vBNT is no longer tied to BNT but rather to bnBNT.For a full explanation on all of the above points, make sure to read the full Twitter thread 👇 — @BanclordSome tweets from the official Bancor account in case you missed them — @Bancor — @Bancor🎩Bancorians in the Wild — @MBRichardson87 — @youngestpeso — @NateHindman — @alphavalion — @emmajane1313 — @banclords — @alma_almaks — @alphavalion — @mahut_alex — @ChainlinkoracIe — @Bancor☑Governance👈Previous ProposalsThis past week (12/19/21), we had four proposals on Snapshot that were able to meet quorum and supermajority requirements:Proposal: Increase Trading Liquidity on PSP-BNT Pool to 200K BNTProposal: Onboard Sator (SAO) tokenProposal: Onboard Boba Network (BOBA) with 50K BNT Trading LiquidityProposal: TRAC-BNT fee change schedule and performance analysisAdditionally, there was also a temperature check proposal:Temp Check: Should the Bancor DAO consider a merger with SUSHI to form suSHIBAncor?👉Current ProposalsFor this week (12/26/21), we have five proposals on Snapshot for voting:Proposal: Set trading fees to 1% on LPL-BNT pool from current .1%Proposal: Increase trading liquidity on wNXM-BNT pool to 2M BNTProposal: Onboard BBS Token with External IL ProtectionProposal: Onboard DerivaDAO token (DDX) Plus 100K BNT Trading LiquidityUrgent: Permanently Disable Deposits on the Old Reserve Rights (RSR) TokenProposal: Set trading fees to .2% on CEL-BNT poolHead over to Snapshot to cast your votes on current proposals.❗If you aren’t voting regularly make sure you unstake your vBNT from governance and delegate instead. Self-nominated delegates maintain a page on Discourse to inform other community members of their intended voting behavior. If you disagree with the way your delegate votes, you can always vote manually to override their decision on your behalf.❗☎Bancor Weekly CallIn this week’s Community Call recording, Bancor shared the development updates above and answered questions from the community. Additionally, the call featured BBS Network who outlined a proposal to onboard BBS Token on Bancor with external IL protection.BBS Network with Eyal“BBS is like a Reddit forum with moderators, now decentralized to run on any website. The network itself is the collection of all the BBS boards, wherever they are. Anyone can create a BBS, on any subject, and run it on their own domain. Every post is actually an NFT that users can create, buy, sell and collect revenue from the ad space on posts they own.”BBS Network is the second project to propose external IL protection on Bancor as part of its whitelisting bid.Treasury liquidity on BancorThe ideas of DAOs depositing their treasury liquidity on Bancor in order to support liquidity for their own token is a novel one — it has motivated their participation on LM-rewarding projects such as Curve and Tokemak. However, we believe that projects will ultimately pay much less for a better service on Bancor.When we interact with other projects, they are invariably excited to provide liquidity on Bancor given the unrivaled ease and the value proposition. With the launch of Bancor3, all of the known composability-related barriers preventing us from integrating with other projects will disappear.Q&AWill the infinity pools allow for infinite trading liquidity where all the BNT in the omnipool is available for trading liquidity on the other side?Not quite — the trading liquidity limit will be defined, but the pool itself can accept any amount of TKN. The Bancor network will pivot towards a general market-making strategy where the DAO has control over the % of liquidity staked that’s available for swaps.If in Bancor3, the protocol can accept TKN deposits without necessarily using them for trading liquidity at all times, then what else is it doing with them?Many strategies will be running on Bancor simultaneously to serve as new sources of yield for stakers, details of which we will be revealing with Phase 2 of Bancor3.If we have infinity pools, how do we accommodate so much TKN without infinite trading liquidity? And what if the TKN liquidity exceeds the $ value of the BNT omnipool?Bancor3 is a brand new design — it looks nothing like any other DEX. Token liquidity is handled separately to the trading liquidity side. Excess TKN can be used in different strategies to earn yield even if it’s not available for trading liquidity. We’ll be releasing Bancor101 posts to get people familiar with it.🤝Connect Projects with Steven, Bancor Business Development Lead:Are there tokens you’re holding that we should whitelist on Bancor? DM @FoxSteven about it or connect us with any community leaders/core contributors on the project. Steven leads all our BD efforts and will connect with the team and work with them to get whitelisted or build a deeper pool.📔Bancor Grants:We have content grants active at all times. Any users that want to create videos or guides, please reach out to Nate Hindman (@NateHindman on Twitter or telegram).We have analytics grants. If you want to work on Bancor data projects or if you are good with working on blockchain data and APIs, we can always use your help!As always, we have rolling developer grants for those who want to build and innovate on Bancor’s infrastructure.📓Bancor Resources:Bancor Staking GuideResources & FAQsBancor DocsVideo: How to stake in Bancor PoolsVideo: How to Earn Fat Yields on BancorVideo: Say ADIOS to Impermanent Loss with Bancor V2Research: Bancor — The World TokenResearch: Impermanent Loss in Uniswap v3Analytics: il.wtfAnalytics: Bancor Dune AnalyticsThe Bancorian | Dec 20–26 2021 was originally published in Bancor on Medium, where people are continuing the conversation by highlighting and responding to this story.

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