{"id":445213,"date":"2022-05-11T15:30:00","date_gmt":"2022-05-11T12:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bancor-3-goes-live-with-impermanent-loss-protection-for-liquidity-providers\/"},"modified":"2022-05-11T15:30:00","modified_gmt":"2022-05-11T12:30:00","slug":"bancor-3-goes-live-with-impermanent-loss-protection-for-liquidity-providers","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bancor-3-goes-live-with-impermanent-loss-protection-for-liquidity-providers\/","title":{"rendered":"# Bancor 3 goes live with impermanent loss protection for liquidity providers"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d817eb5977\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d817eb5977\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bancor-3-goes-live-with-impermanent-loss-protection-for-liquidity-providers\/#%E2%80%9D_Bancor_3_goes_live_with_impermanent_loss_protection_for_liquidity_providers_%E2%80%9C\" >&#8221; Bancor 3 goes live with impermanent loss protection for liquidity providers  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bancor_3_goes_live_with_impermanent_loss_protection_for_liquidity_providers_%E2%80%9C\"><\/span>&#8221; Bancor 3 goes live with impermanent loss protection for liquidity providers  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvMmY4NDU0MzctOTkwYS00MjVkLTkyYzctOThkNDRkZDYyOWJlLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Bancor, the first decentralized finance protocol to introduce liquidity pools, has come out with a new liquidity solution with the launch of its v3, called Bancor 3.<\/p>\n<p>Bancor 3 went live with a promise to offer protection against impermanent loss to liquidity providers. The new architectural changes promise to bring sustainable on-chain liquidity and make decentralized finance (DeFi) staking simpler for decentralized autonomous organizations (DAOs).<\/p>\n<p>The v3 project has attracted more than 30 projects and tokens \u2014 including Polygon\u2019s\u00a0MATIC, Synthetix Network Token (SNX), Yearn.finance\u2019s\u00a0YFI, Brave\u2019s Basic Attention Token (BAT), Flexa\u2019s AMP and Enjin Coin (ENJ) \u2014 and several DAOs for its new protocol launch. <\/p>\n<p>The single-sided staking was first introduced with Bancor v2 to protect traders against impermanent losses; however, the last version suffered from a high barrier of entry and high gas fees. With v3, Bancor promises full impermanent loss protection and minimal gas fees.<\/p>\n<p>Liquidity is the backbone of the DeFi ecosystem, but many leading protocols have faced a severe crisis in maintaining a long-term liquidity mining strategy. Talking about the key architecture changes and the new liquidity solution, Mark Richardson, product architect at Bancor, told Cointelegraph:<\/p>\n<blockquote><p>\u201cIn Bancor 3, the protocol utilizes an improved set of operations that allows the network to better manage its liabilities, resulting in a more cost-efficient method of providing impermanent loss compensation.\u201d<\/p><\/blockquote>\n<p>Bancor 3 introduces several new architectural changes and features, including Omnipool, instant impermanent loss protection, auto-compounding rewards, dual rewards and superfluid liquidity. Omnipool is a single virtual vault for token liquidity. Richardson explained that Omnipool can use protocol-earned fees from one pool to compensate a user\u2019s impermanent loss in another pool.\u00a0This should cut down the transaction fee slippage and ensure efficiency.<\/p>\n<p><strong><em>Related:\u00a0Chainlink set to power Latin American real estate platform<\/em><\/strong><\/p>\n<p>The auto-compound earning mechanism ensures that trading fees and rewards are auto-compounded with zero transaction fees simultaneously used as liquidity inside the pool from day one. This mechanism ensures dual-earning for third-party projects.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bancor-3-goes-live-with-impairment-loss-protection-for-liquidity-providers\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bancor 3 goes live with impermanent loss protection for liquidity providers &#8220; Bancor, the first decentralized finance protocol to introduce liquidity pools, has come out with a new liquidity solution with the launch of its v3, called Bancor 3. Bancor 3 went live with a promise to offer protection against impermanent loss to liquidity&#8230;<\/p>\n","protected":false},"author":1,"featured_media":445214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvMmY4NDU0MzctOTkwYS00MjVkLTkyYzctOThkNDRkZDYyOWJlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75914,74868,107545,88700],"class_list":["post-445213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bancor","tag-defi","tag-liquidity","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=445213"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445213\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/445214"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=445213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=445213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=445213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}