In Brief:
- Bancor Protocol revealed features of its third version titled Bancor 3.
- The features comprises Instant impermanent loss protection, an unlimited deposit staking pool, and an Omnipool.
- Bancor version three will be released in three phases titled Dawn, Sunrize, and Daylight, in early 2022.
Bancor Protocol, a decentralized staking platform, unveiled features of its long-awaited third version, titled “Bancor 3.”
Bancor was the first DeFi protocol to introduce AMMs(automated market makers) to the blockchain. Users can earn staking rewards through several liquidity pools on the Ethereum-based exchange and lending platform.
According to the press release, gas fees for trading will be reduced, deposit limits on liquidity pools will be removed, auto-compounding for staking incentives will be implemented, and a new and enhanced front-end will be available.
Unlike the previous Bancor protocol, which processed all trades using the exchange’s native BNT token, the new “Omnipool” protocol will allow all trades on the network to settle in a single transaction, lowering trading gas costs dramatically.
The exchange will also eliminate deposit limits on staking pools with the “Infinity pools,” allowing customers to deposit as much liquidity as they want without having to wait for new pool space to appear.
The version 3 gives BancorDAO more control over the protocol-owned BNT. The DAO will now be able to vote and steer BNT liquidity away from underperforming pools on the market and towards better profitable pools, allowing the protocol to earn more charges.
Bancor 3 will have auto-compounding on staking incentives as well as dual-sided rewards, allowing DeFi projects to compensate liquidity providers on their Bancor pools.
Users will no longer need to wait the first 100 days after installing the Instant Impermanent Loss Protection upgrade as they will have full protection from the start.
Bancor 3 will include multichain and Layer 2 support, as well as third-party impermanent loss protection, one-click migration from Bancor V2.1 and other DeFi protocols, and integration with Chainlink Keepers to help with token burning efficiency.
Bancor version three will be released in three stages: Dawn, Sunrize, and Daylight, with a target release date of early 2022.
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