Bancor $GTC whitelisting proposal is now live for voting on Snapshot, If passed, GTC holders can stake their GTC tokens in the pool and earn passive rewards in the form of more $GTC (and also in $BNT if a subsequent LM reward vote is approved) without suffering from IL. For the proposal to pass, 20% of quorum and >67% FOR votes are needed, so any vBNT (Bancor gov token) holders amongst the Gitcoin community should go and vote on the proposal.
Bancor is the OG DEX where liquidity providers can get decent returns on staked tokens without suffering from impermanent loss, Bancor has been a friend to Gitcoin community and has sponsored multiple hackathons and bounties in which many developers (myself included) have built features and broadened the horizons of our knowledge.
There is currently a snapshot vote live for whitelisting the $GTC token for Bancor Single sided liquidity protection.
This is immensely beneficial for GTC holders since they can now provide liquidity on the GTC side of the pool and earn passive yield on the GTC tokens without suffering from IL.
This is 2 major benefits -
- GTC holders no longer have to sell half their tokens for ETH in order to provide liquidity
- For a token like GTC which is still in price discovery phase, providing liquidity carries extreme risk of impermanent loss (magnified in UNI v3 where you could potentially involuntarily sell all your GTC for ETH if the token price significantly outperforms vs. ETH)
Additionally, pool whitelisting on Bancor is often followed by additional BNT Liquidity mining rewards for stakers (requires a separate vote) on both TKN side and BNT side of the pool.
Here is a link to the snapshot vote (currently underway)-
Link to governance proposal and discussion-
Guide to how IL protection (single sided liquidity provision) works on Bancor
In-depth analysis of impermanent loss
If the vote passes on Bancor governance, the gitcoin community should then decide whether liquidity providers on the pool should still be eligible for voting rights (they should since providing liquidity is a vital form of governance) and whether the DAO wants to allocate LM rewards to LPs on the pool.