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BANCOR

11.5.2022 15:02:06 CEST | Business Wire | Press release

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Bancor 3, The Ultimate DeFi Liquidity Solution, Goes Live With Launch Partners Polygon, Synthetix, Brave, Flexa, Yearn, Nexus Mutual & 30+ DAOs

Bancor (BNT) , the inventor of DeFi and liquidity pools, has announced its new protocol version, Bancor 3, is now live. Bancor 3 is set to be the ultimate automated DeFi liquidity solution empowering token projects and their holders to drive healthy on-chain liquidity in their native tokens.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220506005455/en/

The launch has already attracted 30+ token projects and DAOs including Polygon (MATIC), Synthetix (SNX), Brave (BAT), Flexa (AMP), Yearn (YFI), Enjin (ENJ), WOO Network (WOO) and Nexus Mutual (wNXM), which are providing seed liquidity on the network or offering liquidity incentives via Bancor’s new customizable Auto-Compounding Rewards system.

Token projects and DAOs can use Bancor to:

  • Maintain liquid markets for their native token, facilitating cheaper token trading.
  • Enable token holders to earn safer, higher yields exclusively in their native token (Single-Sided Staking with 100% Impermanent Loss Protection).
  • Deploy Auto-Compounding Rewards that minimize sell pressure and are simultaneously used as fee-generating liquidity from day one.

Driving Sustainable Liquidity in DeFi

Decentralized liquidity is the backbone of DeFi, yet strategies employed by token projects to create long-term liquidity have proven ineffective. Due to the risk of negative returns from Impermanent Loss, most token holders today are reluctant to provide their tokens to liquidity pools. Meanwhile, liquidity mining rewards programs largely end up in the hands of “mercenary yield farmers” who hop from pool to pool liquidating earned rewards into their preferred asset, leaving the token projects high and dry.

Roughly two years after yield farming burst onto the scene and spawned the first “DeFi Summer” in 2020, DAOs and token communities are still searching for a safe, simple and sustainable way to drive decentralized liquidity.

Today, Bancor launches out of beta its new and improved third version, aimed at creating sustainable on-chain liquidity for token projects by giving participants access to Single-Sided Staking with no risk of Impermanent Loss, and providing them with Auto-Compounding and Dual Rewards. Liquidity providers are less likely to withdraw liquidity when rewards expire since they’re always protected from value loss and can earn with zero maintenance.

Bancor 3: The Ultimate DeFi Liquidity Solution

Bancor 3 introduces novel features that encourage broad and sustainable involvement in on-chain liquidity markets by dramatically simplifying passive liquidity provision in automated market-maker (AMM) liquidity pools. Key features include:

  • Omnipool : A new protocol architecture that consolidates token liquidity in a single, virtual vault, minimizing gas costs and increasing efficiency and usability at every touchpoint.
  • Unlimited Single-Sided Staking : Provide liquidity and earn yield in a single token; no need to pair 50/50 or buy another asset.
  • Auto-Compounding Earnings: Trading fees and rewards auto-compound with zero transaction fees, and are simultaneously used as liquidity inside the pool from day one. Auto-compounding is optimized via an integration with Chainlink Keepers.
  • Instant Protection: All deposited tokens receive 100% Impermanent Loss Protection instantly.
  • Single-Sided Pool Tokens : The first-ever fungible Single-Sided Pool Tokens. Unlike normal Pool Tokens, Single-Sided Pool Tokens only rise relative to their underlying assets, creating a new kind of “up only” money lego that is easily composable in other DeFi products.
  • Smart Portfolio : A new front-end interface gives full transparency into actual net earnings on deposited tokens.
  • Dual Rewards: Third-party token projects can now incentivize liquidity on Bancor with auto-compounding rewards free from Impermanent Loss.
  • Revamped Tokenomics: New BNT tokenomics create a more cost-efficient system for directing protocol liquidity to the highest-earning liquidity pools.

Mark Richardson, Product Architect at Bancor (BNT) , said:

“Bancor has spent the past several years creating the equivalent of a high-yield savings account for DeFi: Deposit your assets, sit back and earn. By helping token projects and their users safely and simply tap into DeFi yields, 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) , said:

“Polygon is excited to utilize Bancor 3 to build decentralized liquidity for MATIC token holders. Bancor’s single-sided liquidity and impermanent loss protection mechanisms make it easier for our DAO and token holders to safely stake and earn MATIC, while driving community-sourced liquidity that powers low-slippage MATIC trading.”

Tyler Spalding, Co-founder of Flexa (AMP) , said:

“Bancor has become one of the largest sources of on-chain AMP liquidity for a reason: It is a safe and simple way to stake. With Bancor 3, we’re doubling down on our belief in Bancor by providing auto-compounding rewards to our token holders who stake their AMP on Bancor.”

Useful links:

Bancor App

Bancor 3 Launch Details

About Bancor Protocol

Bancor is the only DeFi trading and staking protocol with Single-Sided Liquidity & 100% Impermanent Loss Protection. Overseen by the Bancor DAO, the protocol's mission is to bring DeFi mainstream by providing the simplest and safest 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, offering up to 30% APR on 150+ tokens like ETH, WBTC, LINK, MATIC, AMP, SNX & more. Bancor is the preferred treasury management solution of 30+ DAOs including Polygon, Nexus Mutual, UMA, KeeperDAO & WOO Network DAO.

Link:

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