Bancor V2.1 Live on Ethereum Mainnet

Popular decentralized platform Bancor has recently announced the launch of its v2.1 upgrade on the Ethereum mainnet.

The Bancor v2.1 upgrade also passed the community vote on October 19, 2020. Now liquidity pools (LPs) can easily stake their tokens with “single-sided AMM.” Stakers will also enjoy earnings with zero possibility of impermanent loss. Simply put, Bancor v2.1 provides two main features, namely:

  • Liquidity protection (impermanent loss insurance), and
  • Single-sided exposure.

Bancor confirmed this announcement on Twitter.

Interestingly, REN is one of the first protected LPs to go live on Bancor. More pools (about 60) are expected to go live on the platform soon. When choosing liquidity on the pool, it is advisable to choose between 100% exposure to $REN or $BNT. Stakers also need to ensure proper management in their Bancor new pool. This is because single-sided AMM with swap fees and IL insurance will result in a higher rate of interest (ROI).

Modus operandi

First, interested stakers need to connect with an LP and then provide liquidity to that pool. Once this is done, Bancor will also invest but provide BNT tokens instead. These staked BNT tokens earn swap fees, which are subsequently used to pay for impermanent loss, IL insurance, etc. The fees are also burnt to decrease the total BNT supply.

Notably, the longer time spent in a pool, the higher the protection against impermanent loss. This, in return, increases the ROI on staked tokens.

This is the first upgrade to scale through Bancor’s recently launched governance structure. The Bancor V2.1 upgrade provides AMM with better interesting points.

Staking guide on Bancor V2.1 upgrade

Below is a step-by-step guide on how to stake on the platform.

First visit Bancor’s liquidity protection page and click on “Stake.”

bancor v2.1

Source: Bancor Blog

Next, below the Single-Sided Protection option, select and click on “Stake and Protect.”

bancor v2.1

Source: Bancor blog

This is followed by a list of pools. Search and click on the pool of your choice. For this guide, we chose the BNT/REN pool.

Select 100% exposure to either BNT or REN. Input the amount you want to protect and click on ” Stake and Protect.”

bancor v2.1

Source: Bancor blog

Next is to confirm the transactions in the app and MetaMask. The protected single-sided liquidity will appear on the direction screen (if it doesn’t appear right away, click on “refresh”).

bancor v2.1

Source: Bancor blog

Advantages of the newly launched Bancor V2.1

Speaking on the announcement, Bancor praised its community members. The platform added that the members were filled with new and exciting ideas, all in a bid to improve and fine-tune the Bancor ecosystem.

The advantages include:

  • Stakers can hold their stake for as long as they desire.
  • The single-sided exposure and IL insurance make AMM more organized and less chaotic.
  • Less stress of being an LP as you can easily set it and then forget it.
  • Protection from impermanent loss.
  • No more misleading APYs.

Find out more about Bancor on the Altcoin Buzz YouTube channel.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.