What Is Bancor 3 – New Liquidity Solution?

Bancor, the first decentralized financial protocol to provide liquidity pools, has released a new liquidity solution with the launch of Bancor 3.

Bancor has been a pioneer in blockchain innovation since developing the first on-chain automated market maker (AMM) in 2017. In 2020, Bancor added single-sided staking and impermanent loss protection to AMMs, therefore enabling users to profit with less complexity and risk.

Bancor is launching “The Ultimate DeFi Liquidity Solution” to improve on-chain liquidity health and long-term returns for token holders, DAOs, and the DeFi ecosystem as a whole.

Moreover, Bancor’s innovative customizable auto-compounding rewards mechanism has already attracted 30+ token projects and DAOs that are providing seed liquidity on the network or providing liquidity incentives. Furthermore, these are some of the projects that Bancor 3 has attracted:

  • Polygon
  • Synthetix
  • Brave
  • Flexa
  • Yearn
  • Enjin

Bancor 3 offers single-sided staking of over 150+ tokens with no danger of impermanent loss, as well as auto-compounding and dual rewards. Because token holders are safe from value loss and may receive large returns with no maintenance, they are also less likely to remove money even when rewards expire.

While the yield farming mania has brought a lot of money and attention to the DeFi ecosystem in the last two years, it has also brought in a lot of opportunistic players that take significant value from DeFi projects through their liquidity and incentive programs. Bancor 3 returns DeFi liquidity to DAOs and their token holders by making liquidity provision into AMMs safer and easier for regular people.

The new Omnipool architecture at the center of Bancor 3 consolidates token liquidity in a single virtual vault, minimizing gas costs and enhancing efficiency and usability at every touchpoint.

More About the New Liquidity Solution

By significantly simplifying passive liquidity provision in automated market maker (AMM) liquidity pools, Bancor 3 provides unique features that facilitate broad and sustainable participation in on-chain liquidity markets. Moreover, key characteristics include:

  • Omnipool
    It is a revolutionary protocol architecture that consolidates token liquidity into a single virtual vault. Therefore, it reduces gas costs while increasing efficiency and usability at every touchpoint.
  • Unlimited Single-Sided Staking
    Provides liquidity and earns income in a single token; no need to pair 50/50 or buy another asset.
  • Auto-Compounding Earnings
    Trading fees and rewards auto-compound with no transaction costs and are used as liquidity inside the pool from day one. In addition, a connection with Chainlink Keepers optimizes auto-compounding.
  • Instant Protection
    Instant impermanent loss protection is applied to all deposited tokens.
Additional Characteristics
  • Single-Sided Pool Tokens
    The world’s first fungible single-sided pool tokens. Single-sided pool tokens, unlike traditional pool tokens, only rise in relation to their underlying assets. It results with a new type of “up only” money lego that is easily composable with other DeFi products.
  • Smart Portfolio
    A new front-end interface provides complete transparency into actual net income on token deposits.
  • Dual Rewards
    Third-party token projects can now use auto-compounding incentives free from impermanent loss to incentivize liquidity on Bancor.
  • Revamped Tokenomics
    The new BNT tokenomics offer a more cost-effective approach for directing protocol liquidity to the highest-earning liquidity pools.

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