Once live, the new Bancor V2 pool will allow LINK holders to provide liquidity and earn a share of the pool’s trading fees while maintaining their long position on the token.
While existing automated market maker (AMM) solutions require liquidity providers to split their holdings into multiple reserve assets, Bancor’s V2 solution gives LPs the ability to:
The LINK pool will utilize Chainlink’s LINK/ETH and BNT/USD decentralized price feeds to achieve these novel features. Learn more about Bancor V2’s industry-first features in Chainlink’s official blog post on the current state and future of AMM-based DEXs.
Bancor V2 code is currently undergoing formal verification and auditing as well as a public bug bounty prior to its Mainnet release.
Once Mainnet is released, LINK will be among the first pools to go live on the new system.
We are thrilled with this collaboration, and look forward to having the LINK community participate in the early phases of Bancor V2.
Chainlink (LINK) is a decentralized oracle network which aims to connect smart contracts with data from the real world. Chainlink was developed by Sergey Nazarov, with Steve Ellis as the other co-founder. It held an ICO in September 2017, raising $32 million, with a total supply of 1 billion LINK tokens. LINK, the cryptocurrency native to the Chainlink decentralized oracle network, is used to pay node operators. Since the Chainlink network has a reputation system, node providers that have a large amount of LINK can be rewarded with larger contracts, while a failure to deliver accurate information results in a deduction of tokens. Developers describe LINK as “an ERC20 token, with the additional ERC223 ‘transfer and call’ functionality of transfer (address, uint256, bytes), allowing tokens to be received and processed by contracts within a single transaction.” Following the 2017 $32 million LINK ICO, 32 percent of LINK tokens were sent to node operators to incentivize the ecosystem and 30 percent stayed within Chainlink for development (35 percent were sold in the public token sale).
Bancor is an on-chain liquidity protocol that enables automated, decentralized exchange on Ethereum and across blockchains. The protocol is made up of a series of smart contracts designed to pool liquidity and perform peer-to-contract trades in a single transaction with no counterparty. Users add liquidity to automated market makers in exchange for trading fees, BNT staking rewards and voting rights in the Bancor DAO. Since 2017, Bancor has processed billions in trade volume across thousands of tokens, with millions in fees generated by liquidity providers.
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