The Bancor team has started initial deployment of the long-awaited Bancor v2 upgrade, by integrating Chainlink provided BNT/USD and KNC/ETH decentralized data oracles or feeds. The Bancor v2 launch pool has been selected as Kyber Network’s KNC, powered by KNC/ETH feed, enabling KNC holders to provide liquidity in lieu of receiving a share of conversion fees, while maintaining complete exposure to the single token.
.@Chainlink has launched the $BNT/USD price feed!
This is an important step towards releasing #BancorV2, which enables a new AMM liquidity pool with:
💧 No impermanent loss
💧 Single-token exposure
💧 Liquidity amplification on stable & non-stablecoinshttps://t.co/indnWUzCWx— Bancor (@Bancor) June 21, 2020
🏊♂️ We’re thrilled to announce @KyberNetwork‘s $KNC as a #BancorV2 launch pool! 🏊♂️
The pool will use @Chainlink’s $KNC / $ETH price oracle & enable KNC holders to provide liquidity & earn a share of KNC swap fees while maintaining 💯% exposure to KNC: https://t.co/uB9k7gM0KZ $BNT— Bancor (@Bancor) June 24, 2020
The full release will be in early July, pending security audits by ConsenSys and 1inch.exchange, as per the team. It was also recently revealed that the project’s first community call will be held on June 29 at 1 PM GMT, where the technical aspects and extensive details of the Bancor v2 will be presented by the core Bancor team.
Join us tomorrow at 1 PM GMT, for Bancor’s first-ever community call — where the core Bancor team will present the technical details of #BancorV2.
📃 More details: https://t.co/ZxQ2HsWXm6#BancorDAO #DeFi— Bancor (@Bancor) June 28, 2020
What Does Bancor v2 Bring?
The first generation of automated market makers (AMMs) were designed to provide instant convenient liquidity and meant as a Proof of Concept to implement order-book less conversion. As such, they had many problems, since they weren’t exactly designed keeping traders and liquidity providers in mind. The first generation of AMMs suffered from impermanent loss problem (tokens losing value when providing liquidity or staked, as opposed to a simple holding strategy), Non competitive rates versus centralized order-book based exchanges, unbalanced token exposure (requirement to stake at least two tokens with varying distribution weights resulting in a significant barrier of entry) and less profits for the liquidity providers.
Bancor v2 will be the next generation AMM, solving all these major problems with liquidity providers and automated liquidity market. It will feature pool token split, dynamic weights, fee distribution and liquidity amplification. It is being expected that the launch will massively add value to the growing potential and popularity of decentralized exchanges. By providing equal opportunity to liquidity providers, traders and arbitrageurs, Bancor v2 will compete head to head with centralized exchanges if not exceed them, once deployment and adoption is complete.
About Bancor v2
Bancor v2 is the next major upgrade for the DeFi focused automated liquidity provider project, expected to be released, in the month of July 2020. It will feature advancements such as single token liquidity provision, sourcing data oracles from Chainlink to eliminate impermanent loss, reduced slippage design, liquidity amplification (for both stable and non-stable coins) and support for lending pools.
