Bancor Network: Stake and Protect with Liquidity Mining
Weekly Analyst Thoughts
This week, Bancor Network launched their liquidity mining program. So far, the addition skyrocketed Bancor’s total value locked and has been a positive catalyst for its token price, which is up 50% this week. The goals for the Bancor liquidity mining program are to increase liquidity to its exchange and encourage LP’s to stick around once the mining period ends through incorporating interesting features like single sided liquidity deposits and a stake and protect feature for liquidity providers.
One of the main reasons why I was originally drawn to Bancor Network was because their stake and protect feature seems to be the perfect hedge against risk of impermanent loss. While Bancor provides inherent risk management opportunities, they originally did not have enough liquidity or volume to make it worthwhile to become a liquidity provider on their platform. Bancor’s liquidity mining program solves the original liquidity and volume issues of Bancor. Below, find images of the total value locked in the protocol and the liquidity mining reward APY’s investors can receive if they became an LP on Bancor.
In summary, if yield farmers are looking for high returns and mitigation of their impermanent loss risk, then Bancor Network is a great platform to provide liquidity.
Jacob Stelter | Blockchain Analyst