In other words why are new LPs also affected not

Question

Bancor Protocol

Yves

In other words why are new LPs also affected not

just legacy ones?

#bancor #blockchain #cryptocurrency #english

0

28.02.2024

7 ответов

18 просмотров

Yves Автор вопроса

Skiznilly
Because the Omnipool socialises the deficit, and s...

Thank you 🙏! So then am I right to assume that People can still swap tokens on Bancor V3, However no new liquidity providers should enter (if they enter they have a immediate loss)

0

8 месяцев назад

Skiznilly

Yves
Thank you 🙏! So then am I right to assume that Pe...

Yes, you can still trade on it as a DEX, just not add any liquidity without immediately getting slammed by socialised deficit

0

8 месяцев назад

Yves Автор вопроса

Yves
Thank you 🙏! So then am I right to assume that Pe...

Essentially the whole carbon project still works fine to interact with Bancor v3. (I assume this is where the swaps are executed) But. There is no incentives to increase the liquidity pool

0

8 месяцев назад

Yves Автор вопроса

Skiznilly
Yes, you can still trade on it as a DEX, just not ...

But now my next question ⁉️ If only the Impermanent loss feature had been disabled (which is an extra that others AMMs don't offer...) Then why not habe the legacy users take the Loss... However keep the one sided liquidity provision feature in place (which itself is a major feature) And thus open the gates for new LPs?

0

8 месяцев назад

Skiznilly

Yves
But now my next question ⁉️ If only the Impermane...

The single-sided liquidity provision would require the minting of BNT as an equal share of the trading pair, and minting too much BNT too fast is what got Bancor into this mess. So without impermanent loss protection or protocol-funded BNT liquidity, there was no compelling incentive for new projects to enter new pools. I think like 3 new projects opened pools after impermanent loss protection was paused, but only one of them as far as I can recall agreed to set aside their own pool of tokens for limited ILP.

0

8 месяцев назад

Yves Автор вопроса

Skiznilly
The single-sided liquidity provision would require...

So not only is impermanent loss protection disabled... But also the Omni pool / protocol funded, one sided liquidity provision?

0

8 месяцев назад

Skiznilly · Accepted Answer

Skiznilly

Because the Omnipool socialises the deficit, and since Impermanent Loss Protection was "paused", any new deposits instantly (socially) assume the same deficit

0

8 месяцев назад

210 похожих чатов

In other words why are new LPs also affected not

7 ответов

Похожие вопросы