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How to Whitelist a Token on Bancor v2.1

In order for a token to be whitelisted and made eligible for Bancor v2.1 features (impermanent loss protection and single-sided exposure via elastic BNT supply), a whitelisting proposal must be submitted to Bancor Governance and reach a 40% quorum.

Please note, tokens with either of the following technical criteria cannot be whitelisted on Bancor v2.1:

  • Tokens with elastic supply or rebase mechanisms
  • Tokens with permissions that grant administrators unrestricted mint/burn capabilities

How to create a Whitelisting Proposal

Step 1: Create an initial draft of your whitelisting proposal on gov.bancor.network based on the criteria and format outlined in BIP3, section 20 (also outlined in the footer of this blog), which requires the following details:

  • Token contract address
  • Project website
  • Discussion
  • Tokenomics
  • Community and Communication
  • Available Audits
  • Market and Trading Data
  • References

Step 2: After drafting your whitelisting proposal, present it to the Bancor community in the token-whitelisting Discord channel. From here you can request that a separate BIP channel be created for focused discussion on your whitelisting request.

Step 3: Create a new on-chain vote for your whitelisting proposal.

  • An on-chain vote should only be activated once the whitelisting proposal has been thoroughly discussed in governance channels and Bancor community is aligned on its initiation.
  • 25,000 vBNT is required to initiate a new proposal.
  • See the v2.1 staking guide to learn how to stake, generate vBNT, vote and initiate proposals.
  • Proposal creation is covered in Step #6.
  • Once live, voting will last for 3 days.
  • If 40% of the staked vBNT approves, your liquidity pool will be whitelisted.

BIP3 Quorum Requirements for Whitelisted Assets

Based on whitelisting guidelines adopted by Bancor Governance in BIP3, a 40% quorum is required for adding assets to the Bancor protocol whitelist.

The quorum requirement for whitelisting assets is set at 40% in order to reflect the gravity of the decision. Whitelisting an asset exposes the Bancor protocol to potential exploits. A 40% quorum, combined with a two-thirds majority rule, minimizes the potential for an individual, or group of individuals, to create selfish opportunities at the expense of the Community. BIP3 asserts that whitelisting is the most vulnerable target for hacking the governance system, and the security provided by 40% quorum is a sound response to that threat.

A proposal for Whitelisting can be created by following this template:

Below, a hypothetical proposal is made to whitelist Chainlink (ticker: LINK). LINK is already whitelisted; therefore, this mock-BIP has no other purpose than to serve as a template for future whitelisting proposals.

BIP_X: Proposal to whitelist Chainlink

Contract address: 0x514910771af9ca656af840dff83e8264ecf986ca

Project Website: https://chain.link/

[ Discussion ]

The Chainlink project provides technology for trustless oracles. Chainlink is a distributed oracle network, rather than a single trusted entity. As with any distributed system, Chainlink is nearly impossible to compromise, as the adversary must control the majority of the network to influence its behavior. Therefore, Chainlink offers a compelling solution to trustless smart contract execution, where the contract is dependent on data from outside its own blockchain. Due to the general nature of oracles, and the already well-established and rapidly growing use of smart contracts, Chainlink serves a clear purpose now and in the future. The Chainlink blog features a detailed list with 44 examples of how the technology can be used with smart contracts [1].

[ Tokenomics ]

Chainlink’s native token, LINK (ERC20), is required to access, and participate in the oracle network. Node operators stake LINK with the network, for the purpose of reputation metrics and to disincentivize bad behaviour. LINK is also the native currency of the network; contract holders must pay LINK to node operators for maintaining an oracle and providing data. Therefore, the LINK token is a utility token, and not merely a symbolic representation of the project. Gemini, a reputable centralized exchange, has a helpful blog entry that discusses LINK token use, in addition to a general introduction to the Chainlink project [2].

[ Community and Communication ]

Chainlink is active on Reddit, Telegram, WeChat, Weibo, Discord, and Gitter [3]. The Chainlink team also operates official Twitter and YouTube accounts [4]. Activity on GitHub is frequent, with new updates appearing every 2–3 days [5]. The development team and advisors are presented on the team tab on the Chainlink website [6]. Sergey Nazarov, the co-founder and CEO of Chainlink’s parent company, SmartContract.com, is the project’s main spokesperson [7]. The Chainlink website includes a mailing address in Grand Cayman, and four contact e-mails [8]. There are no phone numbers provided.

[ Available Audits ]

Chainlink has been audited at least five times since 2018, by reputable auditors, including QuantStamp and SigmaPrime [9]. Chainlink also has an open bug bounty program.

[ Market and Trading Data ]

  • Chainlink’s price at the time of writing is $12.26
  • All-time high: $19.83 (16th August 2020)
  • All-time low: $0.148 (29th November, 2017)
  • Price 90 days ago: $7.44
  • 389,509,556 tokens in circulation
  • 1,000,000,000 maximum supply.
  • The current market capitalization is $4,785,618,839.
  • The LINK token is available on major exchanges, including Binance, Digifinex, Kraken, Huobi Global, and Coinbase Pro.
  • The 24-hour spot volumes range from $6,770,124 (Kraken) to $88,127,005 (Binance).

[ References ]

[1] https://blog.chain.link/44-ways-to-enhance-your-smart-contract-with-chainlink/

[2] https://gemini.com/learn/what-is-chainlink-and-how-does-it-work

[3] https://chainlinkecosystem.com/

[4] Reddit, https://www.reddit.com/r/Chainlink/; Telegram, https://t.me/chainlinkofficial; WeChat, https://blog.chain.link/chainlink-chinese-communities/; Weibo, https://weibo.com/chainlinkofficial; Discord, https://discord.gg/gyG7Td; Gitter, https://gitter.im/smartcontractkit-chainlink/Lobby.

[5] Twitter, https://twitter.com/chainlink; YouTube, https://www.youtube.com/c/ChainlinkOfficial;

[6] https://chain.link/team/

[7] See: https://www.youtube.com/watch?v=Mx8-VBijyXA,

[8] Mailing, Strathvale House, 90 North Church Street, George Town, KY1–1102, Grand Cayman, Cayman Islands; Security email, security@chain.link; Technical support email, support@chain.link; Custom projects email, custom@chain.link; Press email, press@chain.link

[9] Consensys, https://consensys.github.io/blockchainSecurityDB/projects/chainlink/; QuantStamp, November 2018, https://github.com/smartcontractkit/audits/blob/master/reports/Quantstamp%20-%20Chainlink%20Audit%20Report.pdf; SigmaPrime, December 2018, https://github.com/sigp/public-audits/blob/master/chainlink-1/review.pdf; Nick Johnson, February 2019, https://github.com/smartcontractkit/audits/blob/master/reports/Nick%20Johnson%20-%20Chainlink%20Audit%20Report.pdf; SigmaPrime, May 2019, https://github.com/sigp/public-audits/blob/master/chainlink-2/review.pdf; Callisto Network, September, 2019, https://callisto.network/blog/post/chainlink-link-security-audit-report/; Bug bounty, https://hackerone.com/chainlink

Bancor is an on-chain liquidity protocol that enables automated, decentralized exchange on Ethereum and across blockchains.

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