Proposal: Add Bancor Network Token (BNT) as Collateral Asset with 60% Collateral Factor

Summary

Project website: Bancor
BNT token contract address: 0x1f573d6fb3f13d689ff844b4ce37794d79a7ff1c

Bancor is a Decentralized Exchange protocol on Ethereum and the inventor of automated-market makers (AMMs) on the blockchain. Bancor launched in 2017 and is one of the oldest and more established DeFi platforms. Adding Bancor to the CREAM Finance platform would be a great addition as it has a large number of active DeFi users. As a DEX that offers single sided staking and impermanent loss protection, Bancor integrates with many other DeFi projects and communities.

For

Add Bancor Network Token (BNT) as a collateral asset with 60% Collateral Factor

Against

Do not list Bancor Network Token (BNT) as a collateral asset

Motivation

Access to Bancor’s Growing User Base

Bancor has a large active and vibrant community across multiple social media channels. The largest of these is twitter with 121.9K followers and followed by Telegram with 11.4K members. The Bancor community is very active in governance and has high engagement in weekly community calls.

As users learn about the features (Impermanent Loss Protection and Single Sided Staking) that Bancor provides, the number of unique protected wallets has been incrementing steadily:

Increased TVL and Revenue for CREAM

Onboarding the Bancor Network Token (BNT) will expand the TVL of CREAM Finance lending platform and allow the Bancor Community to borrow against $BNT.

A collateral factor of 60% for $BNT will help drive liquidity and TVL to the protocol. This will allow BNT holders to lend through CREAM and drive up demand for borrowing assets. Ultimately, this will generate more revenue for CREAM as the demand for borrowing assets increases and a portion of interest that borrowers pay will be collected by the platform

Protecting CREAM Liquidity Providers

Bancor has two key features that differentiates 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.

The Bancor DAO recently whitelisted CREAM with overwhelming support (95% Majority Support with over 60% Quorum). This allows CREAM LPs to deposit single sided and be protected from any IL that they may experience.

Going forward, with the release of V3 on the horizon, Bancor is looking to once again reinvent AMMs and dramatically increase the capital efficiency of Bancor pools without sacrificing usability by passive liquidity providers. The Bancor community is looking forward to the CREAM community joining us in this journey.

Background

Bancor is a decentralized exchange (DEX) built on the Ethereum and EOS blockchains. The Bancor protocol employs an automated market maker (AMM) smart contract to facilitate token trades against token liquidity pools without matching buyers and sellers. It has a built-in token called BNT that serves as the common price token to fulfill trades among other smart contract tokens. A portion of total trading fees are distributed to Liquidity Providers, or LPs, that deposit tokens into Liquidity Pools. Trading fees also protect user deposits from Impermanent Loss while minted and burned BNT supply maintains the constant market function for continuous token pricing. While Bancor already exists on Ethereum and EOS, it can be integrated into any smart contract-enabled blockchain to provide cross-chain liquidity.

BNT token contract address: 0x1f573d6fb3f13d689ff844b4ce37794d79a7ff1c

Community and Communications

Social Media

Twitter: 121.9K Followers

Telegram: 11.4K Members

Reddit: 7500 Readers
YouTube: 2.03K Subscribers
Discord: 5.4K Members

Additonal Resources

Documentation
Github
Medium
Analytics
Governance
Coingecko

Markets

Centralized Exchanges

Bancor Network Token (BNT) is listed on top centralized exchanges:

Coinbase
FTX
Binance
Gemini
HitBTC
OKEx
Huobi

and many others (See: CMC and Coingecko).

Decentralized Exchanges

Bancor

The Bancor DEX is the main source of BNT liquidity outside of Centralized Exchanges. As of the time of writing, the following is the liquidity depth of the top 20 tokens on Bancor:

Name Price USD Liquidity Depth
BNT $3.46 $603,421,702
ETH $2,176 $177,464,868
WBTC $35,178 $103,994,629
LINK $20.91 $102,294,515
USDC $1.00 $22,884,694
USDT $1.01 $19,344,424
DAI $1.01 $17,993,071
MATIC $1.39 $16,441,847
ENJ $1.25 $12,276,696
MKR $2,599 $10,758,441
AAVE $265 $10,386,015
WOO $0.99 $9,219,996
YFI $35,723 $8,768,321
wNXM $56.47 $8,396,449
BAT $0.60 $8,388,282
SNX $8.35 $7,237,955
AMP $0.09 $6,759,202
UNI $19.97 $5,795,406
ALPHA $0.53 $5,472,720
OCEAN $0.48 $4,928,975

Uniswap

Uniswap V2 and V3 have two small BNT-ETH pools with 540K and 381K in TVL as of the time of writing.

BNT-ETH V2 Pool
BNT-ETH V3 Pool

Chainlink Price Feeds:

BNT-USD Pair
BNT- ETH Pair

Historical Market Data:

52 Weeks Pricing Information:

52 Weeks Total Addresses with Balance:

Current Market Data

Total Value Locked (TVL): $1,193,683,401
Market Cap: $755,469,731
Market Cap Rank: #94
All-Time High: $10.72 (Jan 09, 2018)
All-Time Low: $0.120935 (Mar 13, 2020)
Circulating Supply: 212,960,487 / 212,960,487
Fully Diluted Valuation: $755,469,731

Security

Audits

BNT Liquidity Mining Audit by Peckshield here (February, 2021)
Bancor v2.1 audit by Peckshield here. (October, 2020)
Bancor v2.1 audits by Certik here (governance) and here (liquidity protection). (October, 2020)
Bancor v2 audit by Halborn here (August, 2020)
Bancor v2 audit by Consensys Due Diligence here. (July, 2020)
Bancor v1 audit can be found here. (May, 2017)

Bug Bounty

Bug Bounty Program: Immunefi

Specification

Whitepaper
Proposing Bancor v2.1: Single-Sided AMM with Elastic BNT Supply
Economic Analysis
Technical Explainer
MakerDAO Collateral Onboarding

Thank you for your consideration.

5 Likes

ACK. Major token; easy addition to CREAM.

2 Likes

Hello Everyone !
I am also from the BancorDAO/Community as-well as a Cream user in the past, I Fuck with the extreme basedness. Also I loved that method man collab, was super sick. Would love to see bancor be on-boarded as it stands bancor is on some lending platforms like smartcredit and others which require a level of KYC. The great thing about the bancor token as collateral is that it’s actually an index of all the tokens in it’s platform and by virtue of that has a incredibly deep liquidity pool. Half of the value of the network in bancor is BNT and that BNT is paired to a multitude of assets making it incredibly viable as collateral since it can be exchanged for a plethora of tokens including stables. Also the Bancor community has long asked for something like this and the amount of people that want to use lending can clearly be seen by the interest in our vortex which is essentially a non-liquidation loan with some cool capital efficiency mechanics built in to further lock up BNT in the system. Look forward to listing and I will be first in line to take out a overcollateralized loan.

1 Like

Have been staking on Bancor for several months and see the enduring value that BNT and the Bancor community bring to defi. The team’s interest in its community is a model for the defi industry. The protocol has already solved problems that most of defi doesn’t yet understand and V3 is going to blow the current V2.1 out of the water. There aren’t really any safer or smarter defi projects for CREAM to be collaborating with at this time.

2 Likes

I’m in support of BNT getting added

2 Likes

@eason I see that you have helped with other proposals in bringing those up to snapshot. Is this proposal something that you can bring up for me? Thanks!

Voting is live on snapshot for the newly announced CREAM listing committee. Thanks everyone!