Increase single sided staking capacity for MANA on Bancor

Hello Decentraland Community,

I wanted to create a topic in the forums to share a proposal that has been put forth in the Bancor DAO to increase the co-investment limit on the $MANA pool to 1M $BNT .

This will open up capacity and allow $MANA holders to stake in the MANA-BNT pool (if the proposal passes) single-sided and also receive impermanent loss protection. The proposal is currently live on snapshot:

and it would be great for any $BNT holders in the Decentraland community (if you have voting power in the Bancor DAO) to show their support by voting. Thanks!

For anyone not familiar with Bancor, there are two key features that differentiate it from other DEXes:

  1. Single-Sided Exposure: LPs can provide liquidity to a pool with single-sided exposure, either in an ERC20 token (“TKN”) or in BNT.
  2. 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.

Just to note here, the proposal was able to pass the Bancor DAO successfully:

35% quorum and 66.7% supermajority are our requirements.

There is now ~1.1M of $MANA space available for LPs