Technology
By Dan Saada
1 / 12
Bancor retweeted and expressed, Bancor has exceeded $1M dollars in Total Value Locked in the protocol FOREVER.
2 / 12
It is important to note that the more BNT locked forever in the protocol the more space on one sided liquidity provision for TKN opens up without the need of BNT LP's.
3 / 12
Vortex Burner is a further improvement to BNT token model (as if it wasn't good enough!). It's designed to: - Increase locked BNT liquidity.
4 / 12
When you provide BNT to Bancor Pool, you get vBNT in return. It represents your stake in the protocol which consists of underlying BNT plus accrued swap fees.
5 / 12
ou may also decide to sell your vBNT for other token in Bancor (e.g. LINK or ROOK). It's done via vBNT/BNT pool, called Bancor Vortex.
6 / 12
But selling vBNT removes the option to unstake the associated BNT stake. To get back your staked BNT, you will need to buy back vBNT.
7 / 12
Notice that if 1 vBNT > 1 BNT, arb opportunity exists. You can buy BNT, stake it, get vBNT and sell it for more BNT. So vBNT/BNT has an effective ceiling at 1 vBNT = 1 BNT.
8 / 12
The lower vBNT/BNT rate is, the more room to climb vBNT has, therefore, the higher the risk that you will have to buy back vBNT at higher price in future.
9 / 12
So what is Vortex Burner? It collects an adjustable fee (5% atm) from swap revenue generated by LPs and uses it to buy and burn vBNT.
10 / 12
Community Musings: One of the community member was like: I took all of the Bitcoin (WBTC) and Ethereum that I bought this week during the big dips and put it into…
11 / 12
Another HODLer: Bancor has much lower trading volumes than Uniswap and Sushiswap but it's higher than Balancer, DODO, and 1inch.
12 / 12
The best place to make some fees while holding your favorite coins. Without impermanent loss. Gas it literally the ONLY thing holding Bancor back.
The Currency Analytics
Want the full story?