Bancor’s Decentralized Automated Marketer (AMM) is set to launch new bid pools and overhaul its always-on-loss mechanism as part of its highly anticipated Bancor 3 update.
Bancor was founded in 2017 and was the first DeFi protocol to introduce Automated Market Makers (AMMs) to the blockchain. The Ethereum-based lending and exchange platform also allows users to receive share rewards from various liquidity pools.
On Tuesday’s blog for the upcoming Bancor 3 update, the platform announced several new features and updates, including Omnipool, Infinity Pool, and “instant, always-on loss protection.”
Permanent Loss (IL) in AMMs like Bancor or Uniswap occurs when the prices of two assets in a liquidity pool deviate significantly with a sharp rise or fall in value.
In October 2020, Bancor introduced a mechanism to tackle this problem for the first time by introducing insurance (IL), which guarantees liquidity providers up to 100% of their seed capital, plus commissions accrued after a waiting period of 100 days. …
With the Instant Loss Protection update, users no longer have to wait for the first 100 days as they get full protection from day one.
The new Omnipool feature will create a single BNT betting pool that offers income from the entire network, as opposed to the current method of offering returns from separate pools of asset pairs such as ETH / BNT.
“The omnipool tool allows you to execute all transactions on the network in one transaction. In previous releases of Bancor, transactions required transfers via BNT, which created an additional transaction and increased gas costs over the competing DEX figures. ”
Infinity Pools will offer Bancor unlimited deposits and will no longer require users to wait for “free pool space before depositing tokens.”
Other notable updates to Bancor 3 will include bonuses for mining liquidity automatically, two-way bonuses for “allowing third-party token projects to offer non-IL bonuses in their pools”, and additional support for multiple chains and teams.
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Bancor is operated by a Decentralized Autonomous Organization (DAO) and currently provides blockchain support for the EOSIO blockchain. The platform said that Bancor 3 will be rolled out in three phases called Dawn, Sunrise and Daylight, and is slated for release in the first quarter of 2022, pending a BancorDAO vote.
Bancor is the 32nd largest DeFi platform with a total installed value of $ 1.65 billion, according to DeFi Llama. At the time of writing, Bancor’s own BNT token is up 2.3% in the last 24 hours to $ 4.06 on a total market capitalization of $ 949.4 million.