The DeFi space welcomes yet another exciting innovation, Bancor in partnership with Ren Protocol announces the addition of REN and renBTC as Bancor V2 launch pools.
REN and renBTC will be among the first batch of pools to go live on Bancor V2. They will facilitate liquidity not just for the partners involved but also for the entire DeFi space.
Benefits of REN and renBTC launch pools
According to the official blog post, REN and renBTC holders will receive a percentage of the trading fees. Previously, existing automated market makers (AMM) made use of liquidity providers to separate their holdings into multiple reserve assets. Bancor V2, on the other hand, provides LPs with complete exposure to their base token. It also prevents “impermanent loss” while ensuring LPs earn benefits from 20X liquidity amplifications. These advantages all make Bancor V2 a welcome innovation to the entire DeFi ecosystem.
According to a tweet by Ren protocol, REN and renBTC pools will need to make use of a reliable oracle price feed. With this in mind, both pools will be powered by Chainlink’s BTC/ETH price feed.
We're excited to partner with @Bancor in launching $REN and $renBTC liquidity pools in the upcoming #BancorV2! Powered by @Chainlink's new REN/ETH oracle. #DeFi #RenVMhttps://t.co/8yfvLtrQq1
— Ren (@renprotocol) July 8, 2020
Plans to launch Bancor V2 was first disclosed in May 2020 and has been scheduled to go live on the mainnet this month. Bancor V2 code is, however, still undergoing stress testing and audits.
Notably, Bancor disclosed that its entire team is “thrilled with this collaboration”.
About Ren and Bancor
Bancor is a popular on-chain liquidity protocol that facilitates the automatic, decentralized exchange on Ethereum and across other blockchains. Consisting of several smart contracts, Bancor is built to carry out peer-to-contract in just a single transaction. Ren protocol, on the other hand, is well-known as an open protocol that facilitates the private transfer of assets between blockchains.
Earlier Bancor also announced Kyber Network Crystal as one of its Launch Pools.