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https://preview.redd.it/2krk6awngo291.png?width=600&format=png&auto=webp&s=3f5cc6493531de9675e460cc65f008038ac93505

2/There are plans on releasing the next 150 pools in the upcoming weeks on #Bancor 3 🚢

Even though all pools can be released at once, there is still a bootstrapping process for each pool that requires some manual procedures🔧

3/This includes setting the funding rate, setting fees, monitoring for minimum amount of $TKN liquidity to enable trading, setting $BNT / $TKN rates, monitoring pool depth, making sure that trading liquidity is doubling as expected, etc… 🤓

All pools require some intervention

4/In essence, there will be a time period between when the pools are available for deposits vs. when they are completely live and ready for trading.

The automation on our end has gotten better, more sophisticated, and deployments are getting cleaner over time. Improvements

5/What's happening with trading APRs?

The current APRs in B3 are not indicative of what they will be in the future. As more pools go live and more trading pairs are available, we expect for trading APRs to pick up on B3 across all pools.

6/As we port more tokens into B3, the routing problem of v2 (double hop) is no longer there. This should drive more revenue to LPs as trading between assets should be more efficient in B3 and therefore be preferred by aggregators, bots, and other market makers.

Additionally...

7/There are still ongoing integrations that need to happen for B3 such as #matcha, #paraswap, #0x, #metamask, and other aggregators/wallets that haven't integrated us yet.

All of these integrations are ongoing behind the scenes. As they come online expect for volume to pick up.

8/Why are $BNT rewards low?

The rewards APR on B3 is low for $BNT LPs due to the standard rewards program having a relatively small amount of $BNT rewards (35k over 30 days).

This is deliberate, as this incentive was not meant to be high to curtail too many people from...

9/migrating too quickly.

A slower release was preferred due to security and stability concerns. Additionally, the protocol needed to be able to bootstrap itself with $bnBNT pool tokens and not be overwhelmed by there not being enough $bnbnt pool tokens for $BNT LPs.

10/The current APR on $BNT has put on the brakes for migrations and this is good for the protocol as it gives it a chance to bootstrap its $bnBNT reserves.

A more attractive APR for $BNT holders (5%-10%) is something that we want to target...

11/and it's coming as the current standard rewards program expires in the next 2 weeks.

Ultimately, these standard rewards programs for $BNT LPs are a stopgap until the autocompounding (AC) program for $BNT holders kicks in.

12/The #Bancor DAO has voted to distribute 40m $BNT rewards over the lifetime of the protocol. 30m $BNT or 75% will be distributed to $BNT LPs over the course of 50 years via the AC program.

https://gov.bancor.network/t/bip18-proposed-bancor-3-liquidity-mining-program/3500

Expected APRs for $BNT LPs are estimated to be 8%-16% solely..

13/from $BNT rewards.

Some of the remaining 10m $BNT rewards are scheduled for $TKN side incentives:

https://gov.bancor.network/t/proposal-addendum-incentivize-users-to-migrate-to-v3-by-matching-token-side-lm-rewards-with-up-to-50k-bnt-per-pool-available-once-per-pool-offer-open-until-the-end-of-august-2022/3629

as well as small LM campaigns on primordial pools to encourage migrations. In general, the vast majority of rewards will go towards $BNT holders. 📷

14/DeFi summer has led people to think that inflationary measures to create artificially high APRs are OK. It is something that we need to revisit as we move into the next epoch of DeFi (safe and sustainable yields).

The #Bancor DAO has adopted an economic policy that...

15/will lead us to last forever and not print infinite amounts of $BNT that is not sustainable/healthy for the protocol.

When AC rewards?

AC rewards require the protocol to own large amounts of $bnBNT which means that it will most likely not go live until the 150 pools are...

16/launched. Additionally, AC rewards that are used as trading liquidity from day 1 are an industry first and it is a noble concept.

This code path will require audits and at least 2-3 are being sought before enabling this feature. Current estimates put this at a minimum...

17/of 4 weeks. Dual rewards for $TKN side LPs which also rely on AC being live should be made available at around the same time.

In #Bancor 3, a security first approach is being taken to guarantee the safety of our users and their funds.

18/We are starting to see some teams offering external IL protection on their pools. $PDI from #phuturefinance, $DAPP from #liquidApps, $CROWN from #crowncapital, $SHIBGF from #shibgf and more new projects have shown interest as well.

This allows the #Bancor DAO to provide...

19/trading liquidity to riskier tokens that would have otherwise not been able to be onboarded in v2.1.

In #Bancor 3, we will be reviewing existing whitelisted tokens as they might no longer meet our security guidelines.

20/For tokens, we are concerned with contracts being pausable, highly centralized, upgradeable, transfer fees, transfers pausables, remote burning, etc...

The #Bancor DAO will ultimately have to vote on tokens that we deem to be risky and might need to be unlisted.

21/We are deeply appreciative of the community support and patience while we roll-out the best AMM in the history of DeFi. 🚀

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This post was adapted from my twitter thread: https://twitter.com/PrimalGlenn/status/1530977991886528515