ZUG, Switzerland, May 11, 2022 (GLOBE NEWSWIRE) — 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.
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…
