DeFi exchange Bancor Protocol announces features of its long-awaited version 3

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  • Bancor 3 introduces a ton of new features like full impermanent loss protection, auto-compounding for staking rewards, etc.
  • A new feature dubbed Infinity Pool will help remove deposit limits on the Bancor Liquidity pool.

Decentralized exchange (DEX) Bancor Protocol has recently revealed the details and features of its long-awaited third version. The new version dubbed Bancor 3 will introduce new features for increasing trading volumes. Besides, it will also allow investors to earn their favorite tokens in a hassle-free and seamless manner.

Currently, the decentralized staking platform Bancor allows investors to earn with single-token exposure along with full protection from impermanent loss. The new features introduced by Bancor 3 will allow auto-compounding for staking rewards along with lower gas fees.

Features introduced by Bancor 3

The decentralized trading platform Bancor 3 will focus on creating a “set and forget” ecosystem of staking tokens on the platform. The upgrade will also introduce auto-compounding for staking rewards. Also, Liquidity Providers (LPs) on the DEX will be able to earn more Bancor Network Tokens (BNT) and other staked tokens.

Users on Bancor 3 will also get access to full impermanent loss protection soon after they start staking their tokens. The current version of Bancor 3 will only offer this feature post 100 days of staking.

One of the new features of Bancor 3 also includes an Omnipool that will facilitate all trades on the platform in just one transaction. It will help to considerably reduce the gas fee while exponentially increasing platform efficiency. Previously, the use of BNT was mandatory to process transactions on Bancor which is not the case with Bancor 3. The Omnipool feature will also bring capital efficiency in place by introducing liquidity-providing strategies on the platform.

Another feature dubbed Infinity Pool will help remove deposit limits on the Bancor Liquidity pool. Infinity Pool will also cater to trading liquidity for market-making and superfluid liquidity. This helps in both internal and external fee-earning strategies.

Another major feature that comes along with Bancor 3 is multichain and layer 2 support. It also includes third-party impermanent loss protection. Furthermore, Bancor 3 will integrate Chainlink Keepers into the protocol.

Speaking on the development, Bancor’s Head of Growth, Nate Hindman, said:

Across the industry, the issue of impermanent loss threatens to undermine the core tenets of DeFi by making liquidity pools unusable by ordinary users, and accessible to only the most sophisticated and wealthy users.

We must prevent DeFi from becoming a playground for the rich and connected to extract value from protocols and dump on everyone else — and this starts with fixing liquidity pools. Bancor 3 marks a new day for DeFi — one in which people and projects retake DeFi’s core building block to bring community-sourced liquidity to masses.

The implementation of Bancor 3 will happen in three different phases: Dawn, Sunrise, and Daylight.