/biz/ - Business & Finance

Who is planning on adding Liquidity shortly after v2.1? I'm putting my whole 20k BNT stack in and maybe 10k LINK. The "3 month hold for no IL" thing is perfect for me as my plan is to stake for years anyway.
Not a shill thread, you can fuck off if you don't understand Bancor by now. LP discussion only.

Daily comfy "it keeps going up" thread.

>>20936831
By the end of the year, I have it on firm authority, that a planckor, which is the smallest conceivable denomination of a Bancor token, will be worth (and don't tell the rest of /biz/ this, they'll freak out.)
INFINITY
TRILLION
DOLLARS.

Here's your starting point to learn about Bancor, because honestly the Chainlink team can shill it way better than I ever could:
>https://blog.chain.link/challenges-in-defi-how-to-bring-more-capital-and-less-risk-to-automated-market-maker-dexs/
The tl;dr is basically this: Bancor is an exchange but it's also a protocol for providing liquidity to any decentralised exchange. What "providing liquidity" means is basically lending tokens and stablecoins to exchanges, so that the exchanges have lots of tokens to buy and sell and keep the prices accurate and stable.
The more liquidity an exchange has, the better it works. The prices are more accurate, you can come in and trade with more money, and you don't suffer "slippage" when you make a big buy or sell that drastically pumps or dumps the price of that asset.

There have been a few downsides to providing liquidity which would stop me or you, or the big boys, from wanting to do it. Sure, you earn fees, but up until now the liquidity provision has two unattractive features. The first is called "impermanent loss" which is a situation where you could actually end up at a net loss. For example, with a fluctuating market you could lend 100 LINK to the exchange and end up with 95 LINK and 2 LINK worth of fees. Not a good deal.
The second is that you have had to provide the exchange with both "sides" of a trading pair. So if you want to provide liquidity to an exchange that has a LINK/ETH pair you need to lend equal amounts of LINK and ETH to keep it balanced.

This is the next massive DeFi success story that will push the whole space forward, but you don't have to take my word for it, because Chainlink wrote this:
>https://blog.chain.link/challenges-in-defi-how-to-bring-more-capital-and-less-risk-to-automated-market-maker-dexs/

u dum

MKR proposes to add BNT to its multi collateral pool, after adding KNC and ZRX last month:
>https://en.cryptonomist.ch/2020/07/06/bancor-bnt-collateral-maker/