[Proposal] Delist $TEMP Token On Bancor To Protect The Tempus Community From IL on Bancor

To All The Supporters Of Tempus

This proposal is with regards to the recent developments made on the Bancor ecosystem and the proposals made by Tempus DAO on the Bancor and Tempus forum which can be reviewed below:

  1. Proposal: Onboard Tempus Finance (TEMP) with 100K BNT trading liquidity limit - DAO Archive (SUBMITTED) - Bancor Governance Forum

  2. [Proposal] Fund the TEMP/BNT pool on Bancor with approx. $750k in TEMP

Tempus was initially whitelisted for a trading limit of 100k $BNT followed by an increase in the trading liquidity limit to 500k $BNT on their platform.

At the time of writing this proposal, the stats are as follows:

  • Liquidity in the pool: $20,990
  • 7-day trading volume: $1,575
  • 7-day trading fee: $1.85

Based on that, a depositor cannot earn more than 0.46% APR in the pool.

Recent developments on the Bancor protocol suggest that:

  • There is no Impermanent Loss insurance in the pools since 20th June. Based on the latest QnA - we cannot claim for any of the BNT compensation even before the IL was disabled (https://twitter.com/PrimalGlenn/status/1538996209016541184)

  • We should not rely on $TEMP/$BNT trading pair because it is neither popular (stats above) nor is there any benefit to continue trading on the app or add liquidity (no IL protection).

I put this proposal forward to therefore delist the $TEMP token from the protocol and protect the fellow community members of Tempus from Bancor protocol who lied about impermanent loss (IL) insurance.

Look forward to hearing from the $TEMP community.

1 Like

I think this makes sense. Bancor has not lived up to its expectations for the insurance and keeping temp tokens listed on the platform will give a bad signal to the ecosystem and other temp holders.

I think this makes sense.

Unfortunately, the Bancor team have lost their legitimacy by disabling impermanent loss insurance - the core feature they have built the entire project upon and marketed as their USP.

It is a strong possibility that there is more macro-driven downward price pressure in this bear market. If impermanent loss insurance is re-enabled, this will result in further BNT minting, which is effectively a death spiral for BNT. That, by itself, is not necessarily an issue for Tempus holders.

However, the TEMP price is partially “anchored” to BNT because we have some liquidity in the BNT-TEMP pool. When the BNT price drops, it “drags down” the TEMP price with it. A large decrease in the price of BNT would result in negative impact on the TEMP price.

As a result, it would make sense to remove liquidity and disable this pool permanently.

I would invite the rest of the community, as well as the Tempus Labs team to also comment on this issue.

Agree on the proposal.

Considering future products and developments that Tempus has in pipeline, it’s important for the TEMP token price to accurately reflects the fundamental value accrued by their products for tokenholders.

Being paired with the token of a project in freefall like Bancor doesn’t allow that.

No impact on the overall TEMP DEX liquidity is foreseen since the share of BNT/TEMP TVL on the overall TEMP TVL in DEXes is very low

I agree with the points mentioned above. Considering IL insurance is stopped, LPing on Bancor seems irrelevant.

I agree with the fact that Bancor has lost their credibility and BNT is in death spiral. But, As I mentioned in our telegram group as well, when I tried to withdraw my temp from the liquidity pool, it was returning me “zero” temp. I had close to 31,000 TEMP in the liquidity pool which was protected by IL protection. Now if we withdraw liquidity, what will happen to my TEMP tokens? Will I lose it all forever? I think its a bit unfair. Also, applies to others who still have their liquidity there.

1 Like

Legit concern.

Apart from that issue that may certainly remaian unsolved (hopefully you can get some compensation) I totally support the proposal as well.

I fully understand and concur with this proposal given the recent events. Hopefully, Bancor will make good of the users who suffered IL due to the changes.