It helps if people would take time to understand how Bancor works. $vBNT burning is just around the corner. Once activated, each $vBNT burned represents a $BNT token that is locked in the protocol forever.
There is an upcoming full release of Bancor Vortex. Reportedly, the total value locked in the Bancor Protocol has multiplied, thus exceeding $1.6 billion. Recently, Bancor broke into the top 10 projects by TVL and now it generates the fifth highest revenue of any protocol on Ethereum.
The traction of Bancor in the DeFi world is increasing rapidly. The liquidity pools are not willing to risk their capital due to the threat of impermanent loss on the competitor protocols.
There is a lot of governance activity and community engagement in the Bancor ecosystem. Development activities in the core are happening faster than ever before.
The recent update about the progress and plans consist of Full Vortex, Gasless Voting, Shadow Tokens, Origin pools, Fiat Ramp, Limit orders, Trader Incentives and UX, New LM Pools, L2 Arbitrum, Rewards re-staking, BNTEE.shop, Listings, and DeFi Rankings.
From the industry’s point of view, the elastic token supply and co-investments are attracting new attention from on-chain analysts. Also, new investors are making use of sophisticated metrics to assess DeFi protocols. Reportedly, there are misconceptions related to supply and revenue.
As regards the supply, there has been a steady rise in the BNT supply since the launch of Bancor V2.1 and a lot of its growth is attributed to co-investments in the protocol meant to support one-sided liquidity. Also, BNT is minted to the pools to match single-sided deposits by users.
The BNT is considered to be placing deflationary pressure on BNT. They are working on better analytics to bring out the clear picture associated with “the percentage of BNT supply associated with direct protocol ownership, and the “true” circulating supply on the open market.”
As regards the revenue, DEXs are having two kinds of fees like the supply-side and protocol fees.
The supply-side fees is that which is paid to liquidity providers (market makers), and the protocol fees is the fees paid to the protocol’s owners like the BNT token holders).
It is not correct to value a traditional exchange based on how much the market makers are paid. However, the DEX evaluation is done this way.
Reportedly, Bancor blog states that in the Bancor’s case, 50% of total swap fees can be taken to be the “protocol fees”, which is earned by BNT holders, after accounting for cost of IL compensation.
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