Bancor, a prominent decentralized finance protocol has announced the launch its v3, also known as Bancor 3. Six months ago, the project shared details about the features.
Bancor 3 goes live
The official blog post states that Bancor’s new version aims to encourage broad participation in on-chain liquidity market by simplifying passive liquidity provision within automated market-maker liquidity pools.
Mark Richardson, Bancor’s Product Architect, released a statement following the development.
“Bancor spent many years creating DeFi’s equivalent to a high-yield savings bank: Deposit your assets and sit back to earn. Bancor 3 helps token projects and users to safely tap into DeFi yields and creates on-chain liquidity markets that are robust and resilient and drive healthy token economies.
In November 2013, Bancor revealed the first details about version 3. Dawn is the start of Bancor’s third-tiered launch. This phase addresses any issues in the protocol version before it. This phase will set the stage for the next steps, Sunrise and Daylight.
Improvements and new features
Bancor pointed out that token projects’ strategies to generate long-term liquidity are ineffective. Blog argued that many token owners are reluctant to sell their assets to liquidity pool because of the risks associated with Impermanent Loss and negative returns.
The result is that a large portion of liquidity mining reward programs “ends up in the hands mercenary yield farms who hop from one pool to another liquidating earned rewards into a preferred asset,” leaving token projects without a home.
Bancor stated that the main goal is to return DeFi liquidity to DAOs and token holders. The new version 3 features Omnipool, unlimited single side staking, auto-compounding earnings via Chainlink Keepers integration and revamped tokenomics.
The team claims that the V3 release has attracted more than 30 token projects and DAOs, including Polygon (MATIC), Synthetix(SNX), Brave [BAT], Flexa (AMP), Yearn [YFI], Enjin (ENJ), WOO Network (“WOO”) and Nexus Mutual (wNXM). These protocols offer seed liquidity to the network or provide liquidity incentives through Bancor’s customizable Auto-Compounding Reward system.
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