Bancor 3, a DeFi liquidity solution by decentralized trading protocol Bancor, has incorporated more than 100 tokens, such as USD Coin (USDC), Polygon (MATIC), and Enjin (ENJ), for more sustainable and safer DeFi yields through community sourcing.
Per the announcement: “Users can now provide liquidity to over 100 tokens on Bancor 3 with no deposit limits and earn single-sided yield with zero risk of Impermanent Loss.”
With Bancor 3 initially integrating Ethereum (ETH), MakerDAO (DAI), Bancor (BNT), and Chainlink (LINK), the incorporation of the new tokens will help address some of the high-risk strategies that DeFi users are accustomed to because yields will be triggered by actual user activity other than short-term inflationary measures.
The report noted:“The launch of Bancor 3 comes amid a period of reckoning for the DeFi industry. Token holders have grown wary of the high-risk and high-frequency strategies that fueled growth in DeFi but have often led to heavy user losses. Users are increasingly turning to safer venues to park their assets.”
Bancor 3 aims to raise decentralized autonomous organizations (DAOs) awareness about token management and smart contract risks. The DeFi liquidity solution provider also emphasizes the importance of long-term token holders staying in pools because they can offer liquidity with near-zero maintenance and less risk.
The report stated: “Bancor helps token projects build sustainable on-chain liquidity without the need for costly incentives by giving token holders the ability to deposit in decentralized liquidity pools and earn with single-asset exposure, auto-compounding gains and 100% protection against Impermanent Loss.”
As a DAO treasury management provider, Bancor offers the “Impermanent Loss” guarantee through an automated safe staking system.
In March, Nexus Mutual, an Ethereum-based insurance platform, staked some of its treasury funds in Bancor to gain durable decentralized liquidity. As a result, it joined more than 30 DAOs using Bancor’s treasury management solution, Blockchain.News reported.