Bancor announces Bancor 3 — its biggest proposed update to date
- DeFi project Bancor just added its largest update to date.
- The update has brought a number of improvements to the project.
- Many of the previous limitations and features with requirements are now fully available to all.
Bancor (BNT/USD), one of the leading liquidity protocols in the DeFi sector, just introduced its largest update ever, simply called Bancor 3. The project made an announcement on Twitter on November 29th, starting a thread in which it provided the community with important insight regarding the update.
As mentioned, Bancor 3 is the biggest proposed update to date, and according to the project’s explanation, it comes as a radical redesign that makes it cheaper and easier for people to earn by using their preferred cryptocurrencies.
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The team proceeded to explain that the biggest change that came with the update is its so-called Omnipool. Essentially, in the previous version called Bancor v2.1, there were separate pools for different pairs, so the project had one for ETH/BNT and another for DAI/BNT. However, Bancor 3 simplifies things by introducing only one pool where users can stake their BNT in order to earn yield from the entirety of the network.
The pool will allow all trades on the network to occur in a single transaction, which should boost scalability even further, and reduce costs. Both will be a major improvement for the project, making it a lot more competitive compared to the others.
Furthermore, with the gas costs reduced, Bancor will be able to attract more trading fees with the same level of liquidity. That will also help with making the protocol more capital-efficient.
Then, the project also added Infinity pools, which will allow for unlimited deposits on Bancor. This is also a major improvement on the previous situation, where users had to wait for a space to open up in a pool before they could deposit new tokens. Infinity Pools will remove this limitation completely. Alongside them, the project also got the concept of Superfluid Liquidity, which can be used simultaneously for market-making and fee-earning strategies native to the protocol.
Bancor also introduced its new pride and joy, IL Protection, or Impermanent Loss Protection, which was accrued by staking tokens in a pool for 100 days or more in the past. Now, it is available instantly for everyone. There are plenty more additions to the protocol, so anyone interested should definitely take their time and research it in-depth, as the project’s largest update definitely deserves to be called that.