Users can Trade Tokens and earn interest on their favorite tokens by staking them in Bancor’s decentralized exchange.  Those who have tokens can stake it to earn fees and earn rewards with impermanent loss protection.

It is worth reinstating the umpteenth time Bancor V1 invented the AMM, Bancor V2 protected LP capital, and Bancor V3 maximizes passive yield.

Decentralized liquidity has never been the same.  Harmony (ONE) and Bancor partnership are providing single-sided staking.  Harmony (ONE) Trading and single side staking are live on Bancor.  Mitigating impermanent loss is a major challenge in several DeFi protocols.  There is a solution from Bancor, which is designed to mitigate impermanent loss in a way to offer single-sided (ONE-only) exposure.

Thus, when you hold a ONE (ERC20) token from Harmony protocol, you will be able to instantly swap ONE in the Bancor Network (for ETH, WBTC, USDC, DAI, and more).  This means you can use ONE to buy ETH, WBTC, USDC, and DAI.  When more number of people invest their ONE in the liquidity pool, the availability of ONE becomes more, and thus the price of ONE becomes cheaper.

Bancor fully protects ONE holders from this kind of value loss.  It is designed to maximize LP earnings in ONE tokens.  Bancor provides a safe and simple way for users to get paid for supporting deep liquidity in the ONE token. In addition, liquidity providers will be able to deposit ONE tokens in Bancor to maintain full-price exposure to ONE, further gaining protection from impermanent loss.

Users should start with the single-sided staking pool of ONE on Bancor. Next, users need to choose the amount of ONEs to stake and protect, approve the transaction, and then you are done.

For those who do not understand:  The process of impermanent loss is when the price of your tokens changes compared to what its price was when it was deposited.  The more the difference in the price, the more prominent the loss will be.  The problem is impermanent loss is not realized until the tokens are withdrawn from the liquidity pool.

The loss is impermanent, and it comes from the inherent design characteristic from a special kind of market known as an automated market maker. Thus, while providing liquidity is a profitable scheme, it is important for investors to understand the possibility of impermanent loss.

Anyone with funds will be able to become a market maker to earn from trading fees.  This is possible because market making has been democratized; however, the impermanent loss is a bug that investors must deal with.

Harmony (ONE) and Bancor partnership are providing single-sided staking to mitigate impermanent loss.