Say ADIOS to Impermanent Loss with Bancor V2
Contrary to other AMM protocols, Bancor uses its protocol token, BNT, as the counterpart asset in every pool. Using an elastic BNT supply, the v2.1 protocol co-invests in pools alongside LPs to support single-sided AMM exposure and to cover the cost of impermanent loss with swap fees earned from its co-investments.
By: Robin Schmidt • Loading...
TutorialsContrary to other AMM protocols, Bancor uses its protocol token, BNT, as the counterpart asset in every pool. Using an elastic BNT supply, the v2.1 protocol co-invests in pools alongside LPs to support single-sided AMM exposure and to cover the cost of impermanent loss with swap fees earned from its co-investments.
Advertisement
The Defiant Daily
“an industry must-read”
Get an edge in Crypto with our free daily newsletter
Know what matters in Crypto and Web3 with The Defiant Daily newsletter, Mon to Fri
90k+ Defiers informed every day. Unsubscribe anytime.