- Bancor has introduced REN and renBTC as the launch pools that eliminate problems like capital inefficiency, the opportunity cost of providing liquidity, and volatile tokens.
- The Bancor V2 is expected to launch anytime this month that promises to reduce slippage.
Bancor is a decentralized exchange platform that offers liquidity in return for a portion of trading fees. Users will be able to exchange their tokens if there is liquidity. Launched in 2017, Bancor raised $153 million in an ICO from 10,000 contributors. Out of which half of the money was circulated and the other half retained for future use. Bancor V2 is the second version of the protocol. Furthermore, it has introduced REN and renBTC as the launch pools that eliminate problems like capital inefficiency, the opportunity cost of providing liquidity, and volatile tokens.
Bancor Version 2.0
Bancor V2, expected to launch anytime this month that promises to reduce slippage. It will provide support to decentralized finance through lending and borrowing of tokens. The liquidity in the market expected to amplify 20x times along with maintaining 100% exposure to the base token. However, the relative value of reserves will remain constant throughout the protocol. REN will aim to provide inter-blockchain liquidity and mitigate the impermanent loss.
Liquidity providers stand to earn more from lending interest combined with trading fees. The interoperability of open-source protocols is at a display with this unique feature. Moreover, REN provides security from counterparty risk from cross-chain transactions. Also, there is security from transactions including large volumes.
The All-round Growth Of Defi Sector
Besides, Bancor prices have been increasing with double the pace of BTC. The Ethereum-based protocol envisages custodial growth and exchange of tokens over the years to come. The price of BNT soared to $1.65 from a low of $0.191080 since 8th April 2020. It amounts to a staggering growth of 761% over three months. However, the most used DEX, 1inch.exchange uses employs BNT protocol for expansion purposes.
With the growth in investment protocols like REN, more and more users will be attracted to it for better interoperability. Moreover, the second version is currently undergoing stress-testing and audits from Consensys Due Diligence and 1inch.exchange. Lastly, they will be among the first pools to go live on the second version of Bancor.