Bancor’s single-sided, protected liquidity solution is attracting a growing number of risk-averse DeFi users
ZUG, Switzerland, June 09, 2022 (GLOBE NEWSWIRE) -- Following the soft launch of Bancor 3 in mid-May, 100+ tokens are going live on the decentralized trading and liquidity protocol, including AAVE, AXS, BAT, ENJ, MATIC, SNX, USDC, USDT, wNXM, WOO and YFI. Users can now provide liquidity to the newly onboarded tokens on bancor.network and earn single-sided yield with zero risk of Impermanent Loss.
Bancor’s launch comes amid a period of reckoning for the DeFi industry. Token holders have grown wary of the high-risk, high-frequency strategies that fueled growth in DeFi but have often led to heavy user losses. Users are increasingly turning to safer venues to park their assets, where yields are driven by real user activity rather than short-term inflationary incentives.
Since Bancor 3 launched last month with four tokens, ETH, LINK, DAI and BNT, more than 2,000 users have provided over $300 million in liquidity. Average yields are steadily climbing, with 24-hour APR on LINK recently hovering between 5-10% from trading fees alone. With 100+ more tokens going live, Bancor is poised to become the preferred solution for risk-averse users to not only “HODL” through the ongoing market volatility, but earn passive, protected yield on their favorite tokens.
Bancor 3: The HODL & Earn Solution for DeFi’s Next Chapter
Two years after the DeFi Summer of 2020, most DeFi users are tired of hopping between unstable yield farms, chasing misleading APRs and suffering the side-effects of inflationary incentives that ultimately damage the token projects offering them.
Bancor helps token projects build sustainable on-chain liquidity without the need for costly incentives by giving token holders the ability to deposit in decentralized liquidity pools and earn with single-asset exposure, auto-compounding gains and 100% protection against Impermanent Loss. Token holders are encouraged to stay in pools long-term, since they’re able to provide liquidity with less risk and hardly any maintenance.
“The DeFi industry is now seeking more dependable sources of passive yield,” says Arthur Cheong, Founding Partner at DeFiance Capital, which holds a position in Bancor’s Network Token, BNT.
Cheong said: “Bancor 3 is emerging as DeFi’s home for HODLers. With Single-Sided Liquidity and Instant Impermanent Loss Protection, Bancor allows us to earn on our long-term holdings with less risk and little to no maintenance. It is truly a ‘set and forget’ strategy for both bull and bear markets, and we’re excited to see Bancor 3 open its doors to additional assets in our portfolio.”
Mark Richardson, Chief Product Officer at Bancor, said: “We’re thrilled to welcome the next 100+ tokens onto Bancor 3. We expect the innovations underpinning Bancor 3 to unleash a fresh wave of interest in DeFi, just like the summer of 2020. But this time, the liquidity will be sustainable because the incentive structures and loss protection encourage liquidity to stay.”
The Bancor 3 codebase recently received a 96% safety score from the security firm DeFiSafety. As of this writing, it is the second-highest score of the 240+ protocols reviewed by the firm.
What to Expect
Users can now earn DeFi yields with Unlimited Single-Sided Liquidity and Instant Impermanent Loss Protection on all 100+ tokens on Bancor 3. Dual Rewards and Auto-Compounding Rewards are in the final stages of testing and auditing, and will be activated soon, to further support competitive, protected yields across the network. Once Dual Rewards are released, more than 30 DAOs plan to offer IL-protected incentives on their Bancor 3 pools.
Visit the brand new bancor.network to try out trading and providing liquidity on the new Bancor 3 protocol.
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