On April 19, the Bancor Network developers announced the launch of Bancor 3 Beta, an upgraded version of the network that aims to boost liquidity, lower gas fees and improve efficiency on the platform. The latest upgrades have welcomed a new wave of investors, capital, and innovation on Bancor, elevating the decentralized finance (DeFi) ecosystem. Below, we look at the explosive adoption rates of the Bancor 3 Beta, the improvements on the network, and the long-awaited launch of the Bancor 3 mainnet version.
The explosive adoption of Bancor 3 Beta
As the first decentralized trading protocol utilizing automated market makers (AMMs), the Bancor community has been at the forefront to bring innovations to the DeFi space. This has led the development team to launch several upgrades and updates to ensure users optimize the utility of the protocol, trade, stake, earn, and provide liquidity efficiently.
The launch of the Bancor 3 brings with it several improvements to the staking pools, protecting users from impermanent loss (IL) and boosting rewards for LPs. As such, the platform has attracted investors across the globe. The Bancor 3 Beta, launched in April, has restrictions on its deposit limits as the community observes the contracts performing for the first time. As the caps are gradually raised, deposits have immediately come flooding in and filled the available space with TLV now at $8 million.
Once the beta goes live in full release, which is expected on May 11, the platform will welcome over 150 tokens and 30+ DAOs have said they will commit to running liquidity mining rewards programs on Bancor 3 including Paraswap, Polygon, and WOO Network among others.
Image: Dune Analytics
According to reports from the Bancor community, the mainnet will be launched earlier than expected, following the success of the Bancor 3 Beta testnet. On the BIP 19 proposal, BancorDAO proposed to end the test period early to welcome the live version of Bancor 3. The testnet is expected to end on May 11th, a week early, according to a tweet from Nate Hindman, a Bancor contributor.
Bringing new partners aboard
Apart from the explosive growth in innovation and adoption, Bancor 3 is also catching the attention of other crypto projects in the DeFi space. So far, over 30+ DeFi projects have pledged to join the Bancor 3 community liquidity mining program. The protocols will add liquidity to the Bancor 3 platform as well as offer incentives to liquidity providers on Bancor. This is will be possible through Bancor’s ‘dual token rewards system’, which will see partnering crypto tokens being distributed to participating liquidity providers. Notably, rewards given to liquidity providers will be auto-compounding and not require gas-intensive transaction fees, so users can earn auto-compounding gains on their staked liquidity without needing to take any action.
Participating Bancor 3 launch partner Paraswap pledged to add 1 million $PSP tokens and Airswap will add 20,000 $AST with the BancorDAO to match the liquidity pledges with a value of BNT rewards.
In this way, Bancor aims to be the simplest and safest way for DAOs and tokens holders to yield farm with single-token exposure and full protection from impermanent loss. The community has called Bancor’s new release the “high yield savings account for DeFi” which could spark a wave of on-chain liquidity and trading in hundreds of token projects.
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