UI shows that my IL would be -45% but when

Question

UI shows that my IL would be -45% but when

I calculated with correct entry prices, it should be around -2%. I am happy to pay the latter without any IL protection but why is it showing incorrect value?

#bancor #blockchain #cryptocurrency #english

0

26.06.2022

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Matt AmaZix

As a result of ILP and BNT minting being paused. Due to the way Bancor’s smart contracts work, if you withdraw from the protocol while BNT minting is paused, you are exposed to both the impermanent loss as well as any deficit arising from re-balancing. so keeping BNT issuance live, for example, to cover losses arising from AMM rebalancing would have resulted in that BNT being immediately traded for TKN, contributing to most users losing everything.

0

26.06.2022

Cee (defisuomi.fi) Автор вопроса

Matt AmaZix
As a result of ILP and BNT minting being paused. ...

Ok! Thanks for the clarification. Tbh, that is not il as it generally understood in defi. Of course, one could call anything impermanent loss from semantic point of view. I am personally occuring opportunity cost of not having my funds available. That is of course not a concern for Bancor. From legal point of view this kind of service would propably be filed under Principal Protected Investments (PPI). They should have maturity defined. It can’t be ”we just hold your assets as long as you like”.

0

26.06.2022

Matt AmaZix · Accepted Answer

As a result of ILP and BNT minting being paused. Due to the way Bancor’s smart contracts work, if you withdraw from the protocol while BNT minting is paused, you are exposed to both the impermanent loss as well as any deficit arising from re-balancing. so keeping BNT issuance live, for example, to cover losses arising from AMM rebalancing would have resulted in that BNT being immediately traded for TKN, contributing to most users losing everything.

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UI shows that my IL would be -45% but when

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