ZUG, Switzerland–(BUSINESS WIRE)–Bancor (BNT), the inventor of DeFi and liquidity swimming pools, has introduced its new protocol model, Bancor 3, is now dwell. Bancor 3 is ready to be the last word automated DeFi liquidity answer empowering token tasks and their holders to drive wholesome on-chain liquidity of their native tokens.
The launch has already attracted 30+ token tasks and DAOs together with Polygon (MATIC), Synthetix (SNX), Brave (BAT), Flexa (AMP), Yearn (YFI), Enjin (ENJ), WOO Network (WOO) and Nexus Mutual (wNXM), that are offering seed liquidity on the community or providing liquidity incentives through Bancor’s new customizable Auto-Compounding Rewards system.
Token tasks and DAOs can use Bancor to:
Maintain liquid markets for his or her native token, facilitating cheaper token buying and selling.
Enable token holders to earn safer, increased yields completely of their native token (Single-Sided Staking with 100% Impermanent Loss Protection).
Deploy Auto-Compounding Rewards that decrease promote stress and are concurrently used as fee-generating liquidity from day one.
Driving Sustainable Liquidity in DeFi
Decentralized liquidity is the spine of DeFi, but methods employed by token tasks to create long-term liquidity have confirmed ineffective. Due to the chance of unfavourable returns from Impermanent Loss, most token holders immediately are reluctant to supply their tokens to liquidity swimming pools. Meanwhile, liquidity mining rewards packages largely find yourself within the arms of “mercenary yield farmers” who hop from pool to pool liquidating earned rewards into their most well-liked asset, leaving the token tasks excessive and dry.
Roughly two years after yield farming burst onto the scene and spawned the primary “DeFi Summer” in 2020, DAOs and token communities are nonetheless trying to find a secure, easy and sustainable method to drive decentralized liquidity.
Today, Bancor launches out of beta its new and improved third model, aimed toward creating sustainable on-chain liquidity for token tasks by giving members entry to Single-Sided Staking with no danger of Impermanent Loss, and offering them with Auto-Compounding and Dual Rewards. Liquidity suppliers are much less more likely to withdraw liquidity when rewards expire since they’re all the time protected against worth loss and might earn with zero upkeep.
Bancor 3: The Ultimate DeFi Liquidity Solution
Bancor 3 introduces novel options that encourage broad and sustainable involvement in on-chain liquidity markets by dramatically simplifying passive liquidity provision in automated market-maker (AMM) liquidity swimming pools. Key options embrace:
Omnipool: A brand new protocol structure that consolidates token liquidity in a single, digital vault, minimizing fuel prices and growing effectivity and value at each touchpoint.
Unlimited Single-Sided Staking: Provide liquidity and earn yield in a single token; no have to pair 50/50 or purchase one other asset.
Auto-Compounding Earnings: Trading charges and rewards auto-compound with zero transaction charges, and are concurrently used as liquidity contained in the pool from day one. Auto-compounding is optimized through an integration with Chainlink Keepers.
Instant Protection: All deposited tokens obtain 100% Impermanent Loss Protection immediately.
Single-Sided Pool Tokens: The first-ever fungible Single-Sided Pool Tokens. Unlike regular Pool Tokens, Single-Sided Pool Tokens solely rise relative to their underlying property, creating a brand new form of “up solely” cash lego that’s simply composable in different DeFi merchandise.
Smart Portfolio: A brand new front-end interface offers full transparency into precise internet earnings on deposited tokens.
Dual Rewards: Third-party token tasks can now incentivize liquidity on Bancor with auto-compounding rewards free from Impermanent Loss.
Revamped Tokenomics: New BNT tokenomics create a extra cost-efficient system for guiding protocol liquidity to the highest-earning liquidity swimming pools.
Mark Richardson, Product Architect at Bancor (BNT), mentioned:
“Bancor has spent the previous a number of years creating the equal of a high-yield financial savings account for DeFi: Deposit your property, sit again and earn. By serving to token tasks and their customers safely and easily faucet into DeFi yields, Bancor 3 creates strong and resilient on-chain liquidity markets that drive wholesome token economies.”
Hamzah Khan, Head of DeFi and Labs at Polygon (MATIC), mentioned:
“Polygon is worked up to make the most of Bancor 3 to construct decentralized liquidity for MATIC token holders. Bancor’s single-sided liquidity and impermanent loss safety mechanisms make it simpler for our DAO and token holders to securely stake and earn MATIC, whereas driving community-sourced liquidity that powers low-slippage MATIC buying and selling.”
Tyler Spalding, Co-founder of Flexa (AMP), mentioned:
“Bancor has turn into one of many largest sources of on-chain AMP liquidity for a cause: It is a secure and easy method to stake. With Bancor 3, we’re doubling down on our perception in Bancor by offering auto-compounding rewards to our token holders who stake their AMP on Bancor.”
Useful hyperlinks:
Bancor App
Bancor 3 Launch Details
About Bancor Protocol
Bancor is the one DeFi buying and selling and staking protocol with Single-Sided Liquidity & 100% Impermanent Loss Protection. Overseen by the Bancor DAO, the protocol’s mission is to carry DeFi mainstream by offering the best and most secure method to commerce tokens and earn passive earnings in DeFi.
Launched in 2017, Bancor was the primary DeFi protocol. Today, it generates tens of millions in charges monthly for depositors, providing as much as 30% APR on 150+ tokens like ETH, WBTC, LINK, MATIC, AMP, SNX & extra. Bancor is the popular treasury administration answer of 30+ DAOs together with Polygon, Nexus Mutual, UMA, KeeperDAO & WOO Network DAO.
https://www.businesswire.com/news/home/20220506005455/en/Bancor-3-The-Ultimate-DeFi-Liquidity-Solution-Goes-Live-With-Launch-Partners-Polygon-Synthetix-Brave-Flexa-Yearn-Nexus-Mutual-30-DAOs
