Staking Chainlink with Bancor V2

[Anonymous No.20080454]

https://blog.bancor.network/unlocking-single-token-exposure-in-automated-market-maker-liquidity-pools-40750968b2ee

Take your 3 minutes to read, this month is gonna be the biggest for Bancor as V2 Is our, you will also be able to Single Token staking, Chainlink includes
This is massive wake up anons

[Anonymous No.20080460]

>>20080454
The BNT token is crucial to all the Bancor AMM's (automated market makers) as it by design makes up 50% of each liquidity pool on the network. Why is that important? Market participants will be incentivised to stake their long hold token of choice in Bancor V2 liquidity pools due to getting no impermanent losses from staking and having the advantage of single token exposure, while earning trading fees as liquidity providers at the expense of traders executing trades. So if the value of the other tokens in the liquidity pools increases, the BNT proportional value has to increase as well to balance the pool. How will this happen? From BNT stakers getting more favourable dynamic fees if the pool is unbalanced. This creates more market incentive for people to buy additional BNT to 'arbitrage' the fee imbalance from the pools - price of BNT goes up. Another important factor: the BNT supply will be inflated as BNT staking rewards will be given from minting new supply, which amplifies the potential earnings from staking BNT in addition to making profit from trading fees. If you're not staking your BNT, you will be diluted out of your market share %, so there's a game theoretical design for every holder to stake their BNT, which creates the following loop: the more BNT staked > the better the liquidity for traders > less slippage for traders > more volume > more fee earnings for liquidity providers > more demand for BNT > price of BNT goes up > deeper liquidity pools > less slippage > more volume > more fees > more demand for BNT > BNT price goes up and the loop goes on and on until all digital assets are being traded on Bancor or outsourced from Bancor liquidity pools. That's what's called the 'liquidity black hole'. If that loop gets succesfully implemented, there's no ceiling to how much BNT could pump.

[Anonymous No.20080541]

I hope we can all get rich before the ponzies become so byzantine and intricated that they brutally crash together *snap*

[Anonymous No.20080598]

>>20080460
I want more now lol

[Anonymous No.20080652]

So on one side you have the fact that ERC20 dev teams will be able to single asset stake their entire development budget in a liquidity pool to make profits without having to sell any of their reserves.
And on that same side you have Chainlink themselves saying that v2's improvements make liquidity provision from "traditional markets" (aka institutions) viable.

Then on the other side you have the fact that the value of the BNT token has to balance the value of every trading pair on the protocol, combined.
And it's under 100m cap lmao.

[Anonymous No.20080687]

>>20080652
Time to deposit more LINK on Aave you mean?

[Anonymous No.20080766]

>>20080454
Take this down fggt

[Anonymous No.20080777]

HOW ABOUT NO NO NO NO NO NO NO I WILL HOLD MY OWN LINKIES