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Bancor has said it is currently testing and auditing the Dual Rewards and Auto-Compounding Rewards features and plans to activate them in the weeks ahead.
More than 100 tokens have been incorporated into Bancor v3, the latest iteration of the decentralized trading and yield protocol that makes its use more efficient, smooth, and cheaper.
Added tokens include AAVE, BAT, ENJ, MATIC, SNX, USDC, wNXM, WOO, and YFI. They are on top of the four initial tokens, ETH, DAI, LINK, and BNT, whose pools were activated on launch day in mid-May 2022. This development represents a massive upside for the DeFi protocol and its goal of providing a secure and open avenue for projects to park their tokens while earning sustainable yields and boosting their liquidity.
The Bancor DAO plans to add more tokens in the weeks ahead. Already, they had given the nod of approval to tokens whitelisted and part of the Bancor v2.1 list. However, following a security review, nine tokens in USDT, OCEAN, SAO, JRT, BAND, BUSD, sBTC, SRM, and sUSD, will have to correct concerns about their smart contracts before migrating.
Bancor reveals that the admin of OCEAN can “self-destruct” the token contract. On the other hand, the admin of JRT is not verified on Etherscan. Meanwhile, in the remaining tokens being considered, the contract admin can burn them at any address, including at the token vault contract of Bancor 3. Their respective teams have to assure Bancor that these risks won’t weaken the entire ecosystem. If these issues aren’t addressed, they will be subjected to a vote on a case-by-case basis to determine whitelisting.
In a press release, Bancor said projects could create and deposit any amount of tokens since there are no limits. The main attraction of this arrangement is that all approved tokens whose pools are activated receive instant impermanent loss protection and decent yields even in a biting crypto winter. The only requirement for a pool is that a pool should deposit at least 10k worth of BNT. Meeting this requirement and activating the pool means liquidity providers will earn yield from the pool’s trading fees.
The release of Bancor v3 HODL and Earn solution is a welcomed addition to DeFi. It helps projects to build sustainable on-chain liquidity without the need for costly incentives. This is because liquidity providers earn from single-asset exposure, auto-compounding gains, and assurance that their assets receive instant impermanent loss protection.
Bancor has also said it is currently testing and auditing the Dual Rewards and Auto-Compounding Rewards features and plans to activate them in the weeks ahead. The launch of the “Dual Rewards” tool, they say, will see over 30 token DAOs offer incentives on their Bancor v3 pools.