Convert all non-bnUSD Network Fees to BALN

Hey Everybody,

As the number of tokens on the Balanced DEX begins to grow, it’s going to get quite unwieldy to handle (and also become not possible from a technical standpoint) to distribute Network Fees in each type of token.

I’d like to propose that we convert all non-bnUSD assets into BALN prior to distribution, but still distribute bnUSD as bnUSD. Originally I was thinking of converting all to BALN, but hear me out on the logic.

It’s a bit of a psychological thing. If we distribute both BALN and bnUSD, I would expect most users to restake the BALN earned or use the bnUSD earned to LP in BALN/bnUSD pool. By still giving bnUSD, you make users feel like they have already captured some value and there’s no need to sell the BALN.

If we give all rewards in BALN, I would expect most users to sell some of the BALN upon receiving it. While it may all end up similar economically in the end, I think there is a decent psychological benefit to paying some in bnUSD and the rest in BALN. Having said all that, I’m also open to BALN-only rewards but think my initial proposal is a happy medium between what we have now and something more scalable.

Let’s have a discussion below, and if we can come to general consensus on the forum then I don’t think there’s a need for a formal on-chain vote for this type of change, though I’d be happy to vote on it if that’s what the community wants.

EDIT: After feedback, this is the new plan going to a vote:

Fees received:

  • sICX
  • bnUSD
  • BALN

All tokens that are not one of these three will be converted to BALN (assuming it’s technologically feasible)

17 Likes

Yes, yes and more yes…love the idea. I was keen on the idea of seeing all network fees converted to BALN prior to distribution but completely agree on your point regarding bnUSD…people like to see a little bnUSD coming in as it slowly pays their loans off (if they’ve one open). Converting all other assets into BALN will add nice buy pressure and by still having a little bnUSD coming in users may opt to not sell their bnUSD as you said.

It’d also be a lot cleaner as mentioned. It’s already getting a bit messy on the UI. Imagine what it’ll look like once BTP kicks into action and the potential assets that can be listed exponentially increases

8 Likes

I’m assuming that the contracts will simply leverage the liquidity pools to make the appropriate swaps on the back end?

I honestly really like seeing all the individual fees (because it’s fun), but converting everything to BALN and bnUSD makes a lot of sense and I like leaving bnUSD as is.

I might make the suggestion that we convert all stable coins to bnUSD and all other coins to BALN, but maybe that is too complex?

11 Likes

+1 to the bnUSD as well - I think not converting bnUSD to BALN, or converting some of the other coins to bnUSD is a good idea as well. bnUSD + BALN as the two dividend coins would be great.

5 Likes

Love it! I’m actually always thinking that I wish I was able to get more BALN from fees. Make it so!

3 Likes

Having all the assets listed individually is fun, but in reality having the rewards payed out in BALN & bnUSD, makes more sense. I’m good with this new proposal.

3 Likes

If I understand this correctly, it would also create buying pressure for BALN and selling pressure on other coins vs BALN. I think this is a good idea to token holders. It creates more value for BALN and makes the fee claiming look better. Meaning it would only have 2 assets with larger batches every time fees are distributed vs seeing 100 different assets with 0.01 tokens in revenue.

I’m not sure how OMM holders (or any other new project coming to Balanced) feel about Balanced platform selling their tokens for BALN, but it is quite standard and mostly psychological thing to people who don’t know how these kinds of things are usually done.

Before people jump onto the → stablecoins to bnUSD and tokens to BALN. I think it is better to keep it simpler and just convert everything else but bnUSD to BALN. It is much simpler and for now I don’t see a reason to not go directly to BALN with everything else but bnUSD.

Maybe @benny_options you have some numbers in the backend about how many BALN holders convert everything to BALN vs people who just keep the fees as they come?

I also think if everyone agrees here (hopefully) there is no need to vote on this one. Just make an general announcement on the official channels about the switch.

All things considered this is a good move for BALN holders in my opinion.

3 Likes

I like this - makes it much easier and streamlined!

2 Likes

It looks like a good idea, but it depends on how it’ll be done.

For example, OMM doesnt have a pool omm/baln, so right now omm to baln would be omm/sicx → sicx/baln or omm/iusdc → iusdc/bnusd → bnusd/baln. Would it be an arbitrarily fixed transition to baln or would check the best one at the moment? And what if other pools are added in the future?

Personally i would prefer to do it manually as i can guarantee i would do the best convertion, but im not really against it.

I’ll echo want Brandon said. I really enjoy earning lots of different assets!

However if it’s not possible, it’s not possible.

I like the idea of converting stablecoins to bnUSD and all other assets to BALN.

I think we will need routing to make all this possible?

5 Likes

correct

To me this is unnecessary added complexity but do appreciate the thought

I haven’t scoped out implementation yet so not 100% sure how possible it will be to calculate the best route on-chain. Current transaction routing is actually typically calculated in the frontend, then the route itself is passed to the smart contract.

Regardless, it will be done the best way possible within any technological boundaries. I’m confident we’ll find something that makes sense

3 Likes

Great proposal l. Yes for me

2 Likes

Hi Benny,

I agree with the proposal. Please go ahead.

1 Like

Wouldn’t it scare new projects from listing their tokens on Balanced? I think that we might create selling pressure for other tokens

1 Like

I like this idea, but am also leaning towards all stable coins swapping to bnUSD but happy either way really. Would the swaps in the background also incur the same transaction fees or would they be different?

Would it be better if we leave the option for conversion OPTIONAL? But at the same time, we have a button to let users convert their fees to also all non-bnUSD to BALN. So 2 options.

4 Likes

Let users convert their rewards into one token, but make it OPTIONAL.

I would love to be able to claim all my network fees in a STABLECOIN, not in BALN.

1 Like

All for the idea if you take in account more assets being listed once BTP is implemented.

However i think we do need to have a formal vote on it, this is a DAO after all, and trust between the community and devs is absolutely critical. We dont want to have to explain to everyone who isnt involved in this discussion, why a small group of the community and the devs decided to make change without giving everyone the chance to have their say.

4 Likes

I’d consider this more of a separate proposal of giving users the option to automatically sell their BALN rewards for bnUSD at claim time.

Personally I’m not in support of that and wouldn’t be excited to work on it haha but coming soon are community-submitted proposals so feel free to make that proposal