Switzerland based on-chain liquidity protocol Bancor announced on Sunday that the Bancor v2.1 is now live on the Ethereum mainnet following a community vote. In a Twitter thread, Bancor stated that LPs will now be able to stake with single-side AMM exposure and security from impermanent loss while also earning fees. It further added that more than 60 protected pools would go live in the coming days, and REN is the first one.
1/ Bancor v2.1 passed the community vote earlier today & is now live on Ethereum mainnet!
Finally, LPs can stake with single-sided AMM exposure – while earning fees & protection from impermanent loss.
Stake at: https://t.co/fVdI1tWZvD
— Bancor (@Bancor) October 18, 2020
Bancor enables automated decentralized crypto exchanges on premier crypto-blockchain networks, including Ethereum. The network had proposed the move earlier this month, and the voting on the same took place on October 18. By going live on the Ethereum mainnet, Bancor will let users stake their tokens to earn higher ROIs by providing single-sided exposure, IL insurance, and swap fees.
The single-sided exposure and IL insurance will make the AMMs more predictable and less cumbersome for LPs. Therefore, LPs can now loan the crypto they want and earn from swap fees. The move also reduces the stress of impermanent losses significantly and misleading APYs. With all the changes implemented, Bancor aims to take its DeFi game to the next level.
DeFi is arguably the fastest-growing segment of the crypto-blockchain industry, and the demand for it keeps growing by the day. Likewise, the competition in the segment is also on the rise, pushing companies to innovate and offer cutting-edge opportunities to the users.