BSL DAO to grant liquidity for the BankSocial exchange
This is a proposal for BSL DAO to grant a portion of the SLP for Fivancial to provide liquidity for the BankSocial exchange.
This initial proposal is for four months (calculated 30 days per month) and starts on the day liquidity is transferred to the exchange. At least one month before the four months pass, both parties have to evaluate if they’d like to continue or cancel this cooperation, and if they’d like to adjust the numbers. An open ended contract can be established later.
We propose BSL DAO grants the following SLP funds to be a liquidity provider for the Banksocial Exchange and/or Fivancial.
The following terms are proposed:
Initial liquidity provided: $25,000 USD
No more than 80% of the total funds in the SLP can be used to provide liquidity to the exchange unless the BSL DAO votes to increase the amount.
The delegates alone can vote to increase this by granting access to the CEX in $25,000 USD increments as more liquidity is needed by the exchange. Majority rules apply, meaning, 3 out of 5 delegates must approve/deny the vote. The delegates must always notify the community of such a vote and the result. The reason behind this is to be able to move quickly in case of need, without a 2 week long full voting process. This will only happen if the volume requires it, or there is some other similar reason.
The community (as always) has the power to override the delegate decision and ask the granted extra (or all) money to be moved back into the SLP, in which case Fivancial must pay it back within one month (30 days). This grant period is so they can look for other funding as a replacement.
Fivancial guarantees to always use the SLP granted liquidity first (BSL DAO has first right of refusal). What that means is: They have the right to acquire additional liquidity funding from other sources, but they will always use the SLP granted funds first (thus giving stakers the highest possible return for their investment).
SLP USD value at the time of writing this: ~$300,000 USD combined (eth+bnb).
In exchange for granting liquidity, stakers receive part of the exchange fees in crypto, in the following manner: For granting LP to the CEX, Fivancial gives back 10BPS (Basis Points) for the SLP from every sell transaction.
** This proposal is for ONLY buys on the exchange
For the sake of transparency towards the community, Fivancial agrees to the following: They will host an open github repository, under an MIT open source licence (The MIT License | Open Source Initiative). This repository will contain this license, and a file, which contains a file with up-to-date information regarding the CEX wallets (past and present). In the long run, the goal is to have a simple, community (BSL DAO) managed website that can follow these wallets and show calculations automatically and publicly. The repository will also contain an easy to understand, step-by-step documentation for everyone who wishes to host this website locally to make sure no tampering is possible whatsoever. PR merge and admin rights to this repository is to be granted to community members later via a separate vote.
The actual numbers, worked out:
For a $100 USD sell, we get $0.10 USD worth of crypto at the time of the transaction.
The reason behind these numbers (and why can’t they be higher) is because there are costs on Fivancial’s side. Profitability and more importantly, sustainability directives must be met.
Important notices:
All of these will be in crypto, _at the time of the transaction, not a fixed dollar amount. So, as the price moves, so will the benefits.
After this proposal is passed, there will be a next proposal for staking and payout rules. In the meantime, we are working on that proposal for the community to review.
Good proposal, great work team, I understand that the distributed value of the fees cannot be higher than that because one of the paradigms of CEX that was presented before was the low fees to be competitive. I am satisfied with the proposal and ready to vote. I just have a question regarding the BPS, what do they represent?
Could we break down why the return is 0.1%? Seem very low. Also who is receiving the profitability income? I thought that was the point of banksocial- give back to profits to the community of BSL holders?
It was stated in the group chat that this will equally protect both parties. If someone could give a brief explanation as to how this helps protect the BSL community. I also agree with Khan, if the SLP is for loans and Fivancial is going to borrow from that SLP then why would they not pay it back at the normal rate?
Looks good. Lets try it out and if we need to adjust as we go a long we can vote again. My only fear is that if we are looking to get a temp check with 50 votes I think that might be tough - not sure how many are engaged with this anymore. I think we should adjust to 25-30 for now until more members get engaged with the DAO.
I don’t think that would be too tough, we have 30 likes on the post already and with the AMA there we should get more participation then too. The DAO can always vote to pull back funds from the exchange of course if it finds the numbers not working in their favor.
Looks good. Just wanted a bit more info on the staking, like if there would be limits on amount and info about the timeframe, but might be beyond the scope of this proposal.
The AMA or discussion we just had cleared up a lot of the questions people are asking, hopefully you got the answers.
Can we as BSL holders become exchange liquidity providers, will that option be available?
This is embarrassing. There’s no way the ‘exchange’ (think changelly, not binance) gets the volume to give anything back to the community. And what’s this profitability? As khan said, the whole idea of this was for the profits to flow back to the community NOT to the pockets of a greedy conman. I knew this would flop but Jesus, 0.1%?? And people are in here saying this is good?
This is the reason there’s not gonna be any marketing… You’re being swindled folks, how can’t you see it?
Up to 80% of the SLP could be used for the exchange?
That’s way too high; especially when we want to continue to offer actual community hard money loans. Seems like a big change of identity.
The success of this mechanism depends on the exchange, of which I haven’t seen anything functional in well over 10 months. I’d love to see the exchange work (and maybe use it myself) before I’d consider the SLP as a liquidity injection.
I’d be voting against this proposal as it stands now.
I would be in favour of a higher percentage to begin the exchange. It can be lowered if we see an insane amount of volume where the community would still make profits.
You do understand the delegates AND John worked on this together. I am “ shocked” that you of all people would push back against this and go for the personal attacks
This of course is up for discussion. We are also considering making that number currently $25,000 to start and $100,000 as a ceiling where the delegates have to vote to increase up to $100,000. IF the need should succeed $100,000 we would have to call for a community vote to access additional funds. This is just an order to save time in case funds increases are needed quickly so the delegates would still need to inform the community on those of course. The proposal is to make suggestions before anything is moved to a temp check and vote.
We are still able to lend from the SLP in this case or use it how the community desires. This however IMO is a better use of SLP funds currently giving the exponential growth opportunity at this time given the lower appeal overall for lending in these market conditions. This of course will bring BSL volume as well given multiple benefits to holding BSL and the opportunity to take staking rewards which would need to be purchased off the exchange.
