Bancor Zap is a new method of contributing to Bancor liquidity pools or reserves, powered by the 1inch.exchange aggregator, that allows users to get exposure to different kind of tokens (e.g ENJ and BNT), by converting any ERC-20 token (e.g ETH) to the liquidity pool token (e.g ENJBNT). It allows users to earn the liquidity pool fees, by adding tokens to its reserves, in a single action, by splitting the user provided token to the specific asset types required by the pool and according to the pool weightage for different underlying tokens (50/50, 30/60 etc.).
🧱 You can now use money legos @1inchExchange @Bancor & #GasToken to zap in/out of a Bancor liquidity pool with any #ERC20 token.
⚡️ Zap with #ETH into the @UnibrightIO pool: https://t.co/YEfqJRuFjC
Learn more about Bancor Zaps: https://t.co/oHPr2vLIH4#DeFi pic.twitter.com/Oz8UPeYEN7— Bancor (@Bancor) April 10, 2020
Previously, if a user wanted to contribute to liquidity pools, for instance say BNT and ENJ, they would have to convert to both tokens, from the token they have (for instance ETH). Now this is taken care of automatically, by the splitter, which converts to both tokens and contributes to the liquidity pools. This simplifies the process massively for users, who can just use the 1inch service, to gain exposure and put their crypto to staking use.
Bancor Zips Process
1inch developed the splitter service 1split, which receives the ERC-20 token (lets say ETH) of your choice, splits the token to your desired liquidity pool’s reserve type (usually two but can be more), distributing the split tokens to its reserve pool (according to its weightage of assets), depositing the tokens to the pool (ENJ and BNT) and minting the liquidity pool token (ENJBNT) and handing them to the user.
The process is repeated again backwards, if the user wants to opt out of the liquidity pool. The splitter service sells the liquidity tokens, for the underlying assets and converts back to the ERC-20 token of the user’s choosing (can be different than the ERC-20 token originally provided for conversion).
Benefits Of Using Bancor Zaps Powered By 1inch Splitter
1inch service makes the whole process simplified and user friendly. Now, users can stake their tokens, without having to delve into the nuisances of conversion to individual liquidity pool tokens and having to consider the liquidity pool weightage for each asset.
1inch splitter uses the gas tokens, which reduces the fees needed by 42% on average. The users can realize the gains, made by the splitting, by checking the conversion of the liquidity token to a token of choice. Also, users can check the liquidity and APR of the pool on 1inch lending service.
Trading Bitcoin is too complicated?
We highly recommend our Crypto-Starter-Kit to you!
Follow us on Social Media and subscribe to our free crypto newsletter!
Diskutiere mit uns!
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Altcoin
At the time of writing this, the Bitcoin price is sitting at $34663.26. Here are the top 5 performing cryptocurrencies …