Add Level 1 access to Discord using 4,200 BPT tokens from the Balancer BANK/ETH Pool
Background
With Season 2 around the corner, we currently have a soft commitment to partner with Balancer on launching a liquidity mining program for the 80/20 BANK ETH Pool. Assuming the S2 Grants Committee passes the funding request (coming soon), this pool will feature both BANK and BAL incentives.
That said, it’s safe to assume there will be a significant amount of interest for this pool from DAO members. However, one of the main drawbacks with providing liquidity is that members lose access to the Discord if they fall below the standard 35,000 BANK threshold (and Lvl 3 access if below 150K BANK)
This post serves as a proposal for adding Level 1 access for BPT tokens for the BANK/ETH pool with the launch of Season 2. Adding support for Level 1 BPT tokens will allow virtually all DAO members to participate in this program.
It’s also worth noting that we already support BPT Level 3 and 4 access for members with 15,000 BPT tokens.
Specification
After initial testing, the recommendation is to support access with 4,200 BPT tokens (because memes) for the Balancer 80/20 BANK ETH Pool. This equates to roughly 22,000 BANK and 0.2 ETH.
In total this is slightly below the 35,000 BANK threshold, however, feels appropriate given users will be providing a valuable service for the DAO and requires a bit more in-depth knowledge on the inner-workings of Balancer and DeFi as a whole.
If this passes, support for Level 1 access will be added for the start of Season 2 on October 8th.
Just thinking this through further, what happens when we change the token requirement? If I provide 25K/2ETH in S2 for 4,200 BPT, if that number goes up, do I need to provide more liquidity despite having provide the required amount in S2?
In other words, if the requirements change in the future, what happens to people that have already met previous requirements and are not new to LPing?
The same would be true if we raised the base threshold as well (say 35K BANK → 50K BANK). Collab Land simply grants access based on the amount of tokens held by wallet from some specific token contract.
If we change it, everyone has to follow the same rules.
That said, there’s been no sentiment or desire to change the normal BANK threshold so I would imagine this would hold true for BPT tokens as well.
Right now, 4,200 represents 25K BANK / 2 ETH. Say, by the time S3 rolls around, BANK is worth two times more. Assuming we hold at 35K, next season that means 25K BANK / 4 ETH, which will be more BPT tokens.
For those who have provided liquidity in S2 going into S3, they would have to put in another 2 ETH to reach the new threshold, meaning if they are inactive in the DAO, they will be kicked out despite having provided valuable liquidity for all of S2.
One possible solution would be to lock seasonal BPT tokens behind another token such that 4,200 BPT = 1 S2 LP token that is valid in perpetuity. Only way to unlock the 4,200 BPT to liquidate your position is by burning the NFT/token. Maybe I’m just overcomplicating things, what do you think?
To clarify if you’re an existing LP, you would not have to add new liquidity as your BPT tokens stays fixed over time (if you LP and receive 4,200 BPT, you’ll have 4,200 BPT tokens in your wallet perpetuity until you remove your liquidity).
The thing that changes is the amount that the 4,200 BPT is redeemable for. Meaning that The 25K BANK / 0.2 ETH is simply what it’s currently required to receive that amount of BPT at the time of writing – this will constantly change depending on the market.
So if you LP today and receive 4,200 BPT tokens, there will be no requirement to add or remove LP tokens at any point in the future as long as the threshold stays constant at 4,200 BPT tokens.