Hello xToken Community,
I wanted to create a topic in the forums to share a Proposal: Whitelist xToken governance token (XTK) Plus 250K BNT Co-Investment Limit that I put forth in the Bancor DAO to whitelist XTK with a 250K BNT co-investment. This will allow xToken holders to stake in the XTK-BNT pool (if the proposal passes) single sided and also receive impermanent loss protection. The proposal is set to go live for voting in the Bancor DAO on Monday (5/10/21). It would be great for any BNT holders in the xToken community (if you have voting power in the Bancor DAO) to show their support by voting on snapshot when this goes live next week.
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.