Impermanent Loss

Users seem to have pulled assets out of Bancor since it suspended impermanent loss protection a month ago.

On-Chain Markets Update by IntoTheBlock Uniswap v3’s concentrated liquidity improved capital efficiency, but also amplified the risks of impermanent loss. Here is the breakdown of the profitability of liquidity providers and how it could potentially be improved.  Recently an interesting paper was published by the Bancor team related to impermanent loss when providing liquidity on…

Bancor has unveiled the next step in their new AMM design. The 2.1 release introduces an elastic BNT supply, used to cover impermanent loss for LPs through a mechanism called Liquidity Protection. The update builds on the ability to  add single-sided liquidity, or using one token to pool liquidity instead of two like Uniswap. LPs…