Thread by @korpi87

1) If you don't like reading long blog posts with project updates but prefer to get a bullish thread with a summary of news pumping your favourite token, I'm here to serve. It's $BNT time again after the March release of Bancor Progress Update. blog.bancor.network/bancor-progres…

2) "In the last month, the total value locked in the Bancor Protocol has more than doubled, exceeding $1.6 billion. Bancor broke into the top 10 projects by TVL and now generates the fifth highest revenue of any protocol on Ethereum." - no commentary is needed - bullish $BNT.

3) $BNT circulating supply reported by CoinGecko & CoinMarketCap is overstated. When you deposit single-sided liquidity, @Bancor mints BNT into the pool to match it. This BNT is protocol-owned, largely remains in the pool earning fees and is eventually burned.

4) It basically means that $BNT market cap is lower than we think (even more undervalued!). The Team is working on improved analytics to clearly show the percentage of protocol-owned supply and report the 'true' circulating supply on the open market.

5) Nearly 80% of $161M liquidity mining rewards in $BNT have been re-staked to the protocol. Re-staking opens space for additional single-sided liquidity and attracts even more TVL. It clearly shows that liquidity incentives don't cause a lot of selling pressure on $BNT.

6) The Team made a comment that proper comparison of dexes should rather be made using protocol fees only, not total fees paid by trades. Total fees paid by traders = protocol fees (paid to protocol's owners = token holders) + supply-side fees (paid to liquidity providers).

7) It basically means that comparisons based on Price to Sales (P/S), like I made in the linked thread, don't do justice to $BNT. Sales = total fees paid by traders and only 16% of them go to $SUSHI and 0% to $UNI holders, while it's 50% for $BNT holders.

https://twitter.com/korpi87/status/1368228791366148096

8) Of course, $SUSHI and $UNI holders can vote to increase the percentage of fees which go to token holders but it will likely cause a tension between them and LPs. In @Bancor around half of LPs are $BNT holders, therefore, 50:50 split is a good balance of competing interests.

9) $vBNT Burner Contract is expected to go live in the next 2 weeks. Initially it will use 5% of swap fees to buy and burn vBNT. Each vBNT burned represents a $BNT locked in the protocol forever. Depletion of true circulating supply = long-term, positive price pressure on $BNT.

10) "The flat vBNT burn rate is adjusted incrementally with volume targets over the next 18 months, up to a final level of 15%." Higher volume => higher burning rate => higher $BNT price. This is one of many examples of how @Bancor aligns protocol success with token price.

11) New innovation from @Bancor is called "shadow tokens". This is a new design for stablecoin pools with unlimited single-sided capacity and IL protection. The purpose is to "grow the TVL and revenue of the network and reduce the impermanent loss associated with stable assets".

12) Technical details are not yet revealed. The Team mentioned: "this pool design is the first of its kind". If it's really going to reduce IL for pools with stablecoins, which are the highest cost of IL protection for the protocol, even more fees will go to $BNT holders.

13) @Bancor Team has also presented a plan to capture liquidity for long-tail assets. The reason why new projects currently bootstrap their liquidity in Uniswap and Sushiswap is that they prefer to pair their token (TKN) with ETH as it's more convenient than $BNT.

14) The solution, called origin pools, is quite simple and brilliant. Users will still provide ETH and TKN, and from their perspective it will be the same experience as on Uniswap or Sushiswap, but on @Bancor they will go to two different pools: ETH-BNT and TKN-BNT.

15) Only ETH side of this "dual-sided" liquidity will be protected from IL. TKN protection will be still dependent on governance decision. This way DAO will not be exposed to insuring a token they have little familiarity or trust and LPs will benefit from IL protection for ETH.

16) @Bancor Team acknowledged they've mostly catered to LPs so far but will focus on traders too by redesigning UX and offering better features. They will start by integration of limit orders from @Keeper_DAO.

Learn on limit orders from @CryptoMessiah:

https://twitter.com/CryptoMessiah/status/1358136955452743681

17) Other developments:
- Fiat on-ramp via MoonPay is live - useful feature to onboard mainstream users into crypto.
- Highly anticipated L2 integration is already live on Arbitrum testnet.
- Gasless voting via Snapshot has been approved by governance.

18) To sum up, liquidity incentives work fine constantly increasing TVL and trading volume follows. With proposed features we can expect even more TVL and more volume. This means more fees paid by traders and 50% of them go to $BNT holders. Are you not entertained?

19) I still encourage you to read full blog post. You will learn more than from some anon's thread on Twitter :) For example, I, as a non-native English speaker, learned a few new words: conundrum and stalemate. I also learned that no conundrum can make @Bancor end in stalemate.