Bancor’s new Single-Sided, Impermanent Loss-Protected Liquidity Solution aims to spark a wave of on-chain liquidity by making DeFi staking a breeze for DAOs and their token holders
ZUG, Switzerland, May 11, 2022 (GLOBE NEWSWIRE) — Bancor (BNT), the inventor of DeFi and liquidity pools, has announced that its new protocol release, Bancor 3, is now live. Bancor 3 aims to be the ultimate automated DeFi liquidity solution, enabling token projects and their holders to foster healthy on-chain liquidity in their native tokens.
The launch has already attracted more than 30 token projects and DAOs, including polygon (MATIC), synthesis (SNX), Brave (BAT), Flexa (AMP), Yearn (YFI), engine (ENJ), WOO network (WOO) and Nexus Mutual (wNXM) providing seed liquidity on the network or offering liquidity incentives via Bancor’s new customizable auto-compounding reward system.
Token projects and DAOs can use Bancor to:
Maintain liquid markets for their native tokens, enabling cheaper token trading.
Allow token holders to earn safer, higher returns solely in their native token (one-way staking with 100% impermanent loss protection).
Leverage auto-compounding rewards that minimize selling pressure while serving as fee-generating liquidity from day one.
Promoting Sustainable Liquidity in DeFi
Decentralized liquidity is the backbone of DeFi, yet strategies deployed by token projects to create long-term liquidity have proven ineffective. Today, due to the risk of negative returns from volatile losses, most token holders are reluctant to provide their tokens to liquidity pools. Meanwhile, cash-drain reward programs largely end up in the hands of “mercenary yield farmers” who hop from pool to pool liquidating earned rewards into their favored fortune, leaving token projects dry.
Roughly two years after yield farming hit the market and spawned the first “DeFi summer” of 2020, DAOs and token communities are still looking for a safe, easy, and sustainable way to drive decentralized liquidity.
The story goes on
Today, out of beta, Bancor is releasing its new and improved third version which aims to create sustainable on-chain liquidity for token projects by giving participants access to single-sided staking without the risk of fickle loss and offers auto-compounding and dual rewards. Liquidity providers are less likely to withdraw liquidity when premiums expire as they are protected from depreciation and can earn without maintenance.
Bancor 3: The ultimate DeFi liquidity solution
Bancor 3 introduces novel features that encourage broad and sustained participation in on-chain liquidity markets by dramatically simplifying passive liquidity provision in automated market maker (AMM) liquidity pools. Key features include:
omni pool: A new protocol architecture that consolidates token liquidity into a single virtual vault, minimizing gas costs and increasing efficiency and ease of use at every touchpoint.
Unlimited one-sided staking: providing liquidity and yield in a single token; no need to pair 50/50 or buy another asset.
Automatically compounded earnings: Trading fees and rewards are automatically compounded, with no transaction fees, and at the same time are used as liquidity within the pool from day one. Auto-compounding is streamlined through an integration with Chainlink Keepers.
Instant protection: All deposited tokens get 100% impermanent loss protection immediately.
Unilateral pool tokens: The very first fungible single-sided pool tokens. Unlike normal pool tokens, unilateral pool tokens only rise relative to their underlying assets, creating a new type of money Lego that can be easily assembled into other DeFi products.
Smart portfolio: A new front-end interface gives full transparency about actual net earnings on deposited tokens.
Double Rewards: Third-party token projects can now boost liquidity on Bancor with auto-compounded rewards without fickle loss.
Reworked tokenomics: New BNT tokenomics create a more cost-effective system to route protocol liquidity to the highest earning liquidity pools.
Mark Richardson, Product Architect at Bancor (BNT)called:
“Bancor has spent the last few years creating the equivalent of a high-yield savings account for DeFi: deposit your assets, sit back and earn – a true set-and-forget staking solution. By helping Bancor 3 token projects and their users to tap into DeFi yields safely and easily, Bancor 3 creates robust and resilient on-chain liquidity markets that drive healthy token economies.”
Hamzah Khan, Head of DeFi and Labs at Polygon (MATIC)called:
“Polygon is excited to leverage Bancor 3 to build decentralized liquidity for MATIC token holders. Bancor’s unilateral liquidity and fickle loss protections make it easier for our DAO and token holders to trade and earn MATIC safely, while fostering the community-sourced liquidity that enables low-slip MATIC trading.”
Tyler Spalding, co-founder of Flexa (AMP)called:
“Bancor has become one of the largest sources of on-chain AMP liquidity for a reason: it’s a safe and easy way to stake. With Bancor 3, we are redoubling our belief in Bancor by offering auto-composite rewards to our token holders who deploy their AMP on Bancor.”
Bancor 3 launch details
About the Bancor protocol
Bancor is the only DeFi trading and staking protocol with one-way liquidity and 100% impermanent loss protection. Overseen by the Bancor DAO, the protocol’s mission is to bring DeFi into the mainstream by providing the easiest and most secure way to trade tokens and earn passive income in DeFi.
Launched in 2017, Bancor was the first DeFi protocol. Today it generates millions in fees per month for depositors and offers up to 30% APR on 150+ tokens such as ETH, WBTC, LINK, MATIC, AMP, SNX and more. Bancor is the preferred treasury management solution for 30+ DAOs including Polygon, Nexus Mutual, UMA, KeeperDAO and WOO Network DAO.
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