Bancor 3 Goes Live With Polygon, Yearn, Others as Partners

The new features aim to make DeFi staking easier for DAOs and their token holders.

AccessTimeIconMay 11, 2022 at 12:43 p.m. UTC
Updated May 11, 2023 at 4:42 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Liquidity pools and staking product Bancor has released its "Bancor 3" protocol, which has new features meant to provide easier staking, the company said in a release shared with CoinDesk on Wednesday.

“Bancor has spent the past several years creating the equivalent of high-yield savings accounts for DeFi: Deposit your assets, sit back and earn,” Product Architect Mark Richardson said in a statement.

“By helping token projects and their users safely and simply tap into DeFi yields, Bancor 3 enables robust and resilient on-chain liquidity markets that drive healthy token economies,” Richardson added.

Bancor 3 launched out of beta with an improved version aimed at creating more sustainable liquidity by giving participants access to "Single-Sided Staking" with no risk of impermanent loss, and providing them with "Auto-Compounding" and "Dual Rewards."

Single-sided staking consists of earning yields on just one token provided by a user to a Bancor pool to maintain 100% exposure to that token. A single-sided "pool token" will be issued to users in return, with these tokens rising or falling relative to the prices of the underlying tokens.

This is in contrast to other decentralized finance (DeFi) pools that require users to deposit multiple tokens in a pool, which increases risk and exposure.

The auto-compounding features reinvest earnings back into the pools to generate higher returns. Meanwhile, dual rewards refer to third-party token projects and partners that can incentivize user liquidity and activity on Bancor.

Bancor generates millions in fees per month for depositors and offers up to 30% annualized returns on tokens such as ether (ETH), weighted bitcoin (WBTC), chainlink (LINK), and others.

Over 30 decentralized autonomous organizations (DAOs) use Bancor as a treasury management solution, including Polygon, UMA, Nexus Mutual and KeeperDAO.

The launch has attracted token projects and DAOs, including Polygon (MATIC), Synthetix (SNX), Yearn (YFI), and WOO Network (WOO), among others, to partner with Bancor and offers dual rewards to users.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about