Bancor 3, the ultimate DeFi liquidity solution, goes live with launch partners Polygon, Synthetix, Brave, Flexa, Yearn, Nexus Mutual and 30+ DAOs

Bancor 3 (Graphic: Business Wire)

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

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

The launch has already attracted more than 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 provide seed liquidity on the network or offer liquidity incentives via Bancor’s new customizable auto-compounding reward system.

Token projects and DAOs can use Bancor to:

• Maintain liquid markets for their native tokens, enabling cheaper token trading.
• Allow token holders to earn safer, higher returns solely in their native token (one-way staking with 100% impermanent loss protection).
• Leverage auto-compounding rewards that minimize selling pressure while serving as fee-generating liquidity from day one.

Promoting Sustainable Liquidity in DeFi

Decentralized liquidity is the backbone of DeFi, yet strategies employed by tokenized projects to create long-term liquidity have proven ineffective. Today, due to the risk of negative returns from volatile losses, most token holders are reluctant to provide their tokens to liquidity pools. Meanwhile, cash-drain reward programs largely end up in the hands of “mercenary yield farmers” who hop from pool to pool liquidating earned rewards into their favored fortune, leaving token projects dry.

Roughly two years after yield farming hit the market and spawned the first “DeFi summer” of 2020, DAOs and token communities are still looking for a safe, easy, and sustainable way to drive decentralized liquidity.

Today, Bancor is releasing its new and improved third version from beta, which aims to create sustainable on-chain liquidity for token projects by giving participants access to single-sided staking without the risk of fickle loss and giving them Auto compounding and dual provides reward. Liquidity providers are less likely to withdraw liquidity when premiums expire as they are always protected from depreciation and can earn without maintenance.

Bancor 3: The ultimate DeFi liquidity solution

Bancor 3 introduces novel features that encourage broad and sustained participation 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 into a single virtual vault, minimizing gas costs and increasing efficiency and ease of use at every touchpoint.
• Unlimited one-way 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 are automatically calculated with no transaction fees and are used simultaneously as liquidity within the pool from day one. Auto-compounding is streamlined through an integration with Chainlink Keepers.
• Instant Protection: All deposited tokens get 100% impermanent loss protection immediately.
• Single-Sided Pool Tokens: The very first fungible single-sided pool tokens. Unlike normal pool tokens, unilateral pool tokens only rise relative to their underlying assets, creating a new type of money Lego that can be easily assembled into other DeFi products.
• Smart Portfolio: A new frontend interface gives full transparency about the actual net earnings on deposited tokens.
• Double Rewards: Third-party token projects can now boost liquidity on Bancor with auto-compounded rewards free from fickle losses.
• Revised Tokenomics: New BNT tokenomics create a more cost-effective system to route protocol liquidity to the highest-revenue liquidity pools.

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

“Bancor has spent the last few years creating the equivalent of a high-yield savings account for DeFi: deposit your assets, sit back and earn. By helping Bancor 3 token projects and their users to tap into DeFi yields safely and easily, 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 leverage Bancor 3 to build decentralized liquidity for MATIC token holders. Bancor’s unilateral liquidity and fickle loss protections make it easier for our DAO and token holders to trade and earn MATIC safely, while fostering the community-sourced liquidity that enables low-slip 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’s a safe and easy way to stake. With Bancor 3, we are redoubling our belief in Bancor by offering auto-composite rewards to our token holders who stake their AMP on Bancor.”

Usefull links:

Bancor app

Bancor 3 launch details

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