As ETHDenver Approaches, Something Is Bubbling in Decentralized Liquidity
Bancor is an on-chain liquidity protocol that enables automated, decentralized exchange on Ethereum and across blockchains. The protocol is made up of a series of smart contracts which are designed to pool liquidity and perform peer-to-contract trades in a single transaction. Bancor has processed more than $2 billion in trade volume since 2018. Anyone can stake liquidity on the protocol in exchange for trading fees, and anyone can build a front-end that interacts with Bancor’s permissionless smart-contract infrastructure.
In the past few months, the Bancor Protocol has undergone a series of significant changes aimed at accelerating and incentivizing greater network liquidity.
In early January, around $2 million worth of ETHBNT pool tokens were airdropped on all BNT holders, creating more than 60,000 liquidity providers on the protocol. These users now receive fees from ETH-based trades on the network.
With the flood of new liquidity providers, developers began launching Bancor-enabled staking interfaces, where users can add liquidity to Bancor pools and track the ROI of their pool tokens. These integrations — launched by DeFi players like Zerion, 1inch, Paraswap and xNation — have helped us refine our documentation and improve the protocol’s composability.
The airdrop was also the first step in Bancor becoming a user-owned network that functions as a DAO. BancorDAO’s first community vote will determine the implementation of BNT staking rewards, which will be regularly distributed to different pools in the network, increasing the incentive for stakers.
Perhaps most importantly, developers are continually hacking on new liquidity pool designs — optimizing Bancor pools for both stakers (high ROI) and traders (low token prices).
Through grants, virtual hackathons and technical support, we have seen the Bancor developer ecosystem rapidly expand, with teams around the world building key features, components and new use-cases that drive the protocol forward.
ETHDenver 2020 attracts some of the brightest blockchain minds in the world, and we can’t wait to connect with a number of familiar faces and partners whom we’ve only spoken with over Google Hangouts, but never in person.
If you’re attending the event, we’d love to meet up and discuss partnering on research, data and DeFi products.
Published at Mon, 03 Feb 2020 21:26:58 +0000
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