And also a very different comparison i know. But the

Question

And also a very different comparison i know. But the

same question applies. How can the protocol maintain its guarantee of refunding initial capital value (of the crypto staked) if there is a bear market and BNT goes down alot. Wouldnt that just cause a minting and super inflation spiral? I think this is great question to answer here in general terms....no?

#bancor #blockchain #cryptocurrency #english

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14.05.2022

3 ответов

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Zeno🌪

Simply put, traders pay a fee to make swaps on Bancor. Part of that fee goes to cover IL. There isn't any need to print BNT to cover IL in 97.5% of cases. This number isn't arbitrary either, less than 2.5% of minted BNT has been to cover IL.

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14.05.2022

Cham AmaZix

Bancor is a decentralized exchange plus and a trading protocol. Please do not compare it to algorithmic something. Also, please go to traders chat if you wish to continue the discussion. Thank you.

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14.05.2022

Zeno🌪 · Accepted Answer

Zeno🌪

Impermanant loss is collected on trade fees - Impermanant Loss is not paid (primarily) in BNT. During a bear market the protocol will have ample time to collect fees (not BNT fees) and cover all positions in the token type that was provided.

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14.05.2022

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