[Proposal: $USF on Bancor]

[ Proposal: $USF on Bancor ]

Goal:

Whitelist $USF on Bancor.

Motives:

$USF LPers on Uniswap are suffering from Impermanent Loss. This proposal aim to avoid through Bancor. For those that doesn’t know Bancor, it’s a DEX, Decentralized Exchange, that have the technology to protect Liquidity Provider from Impermanent Loss. At the moment $USF can only be bought on Uniswap (not including Hoo as it is CEX) and $USF LPers there are suffering from IL.

Benefits:

  • No more IL.
  • Engage with the Bancor community and make them aware that we provide insurance for them.
  • Maybe create a partnership for cheap insurance or something else. (?)

Requirements:

Transparency

  • The token contract needs to be verified on Etherscan.
  • The token contract should have an audit from a known security auditor or explain why it wasn’t audited (for example, if it’s a standard token from the OpenZeppelin library).
  • The project should have a publicly visible test suite with decent test coverage.

Administrative Risk

Administrative privileges over the protocol (ownership, upgradability, emergency powers, etc.) should be restricted:

  • They should not be owned by EOA.
  • They can be governed by multisigs.
  • They can enforce timelock or similar restrictions.

Technical

  • The token contract should not be upgradable.
  • Only the token holders themselves can burn their tokens. It shouldn’t be possible for any other account (including owners/admins) to burn tokens.
  • Minting of new tokens should be restricted and conform to the whitepaper and the security audit.
  • Rebasing tokens or tokens with elastic supply aren’t currently supported.
  • Tokens that apply transfer fees aren’t currently supported. Please note that tokens that have the fee mechanism in place but haven’t activated it yet are exempt.
  • Token transfers shouldn’t be pausable unless a reasonable explanation is provided.

Economic Requirements

  • The token should be fairly distributed (e.g., it can’t be concentrated in a few addresses).

To fix for the requirements (from my perspective):

  • Currently 50% of the supply is owned by an EOA, this should be transferred to a multisig / gnosis safe.

Proposal

Do we want to whitelist $USF on Bancor ?

Propositions:

  • yes
  • no

Ideally, once this is live and if a majority of people voted for. I’ll coordinate the rest on the Bancor forum.