The First 1.5K NFT Collection on Polygon to Highlight Impermanent Loss Protection
Bancor today announced it is dropping its first NFT collection, “DEXLoverz” Condom NFTs, to highlight Impermanent Loss Protection on Valentine’s Day.
Minted on Polygon, the collection features 1,500 Condom NFTs with varying levels of rare attributes. Recipients of DEXLoverz include:
- Users who have suffered extreme cases of impermanent loss among popular AMMs like Uniswap, Sushiswap, Balancer
- Holders of Bancor POAPs received via participation in BancorDAO governance
- Holders of Bancor POAPs received at DCentral Miami
The condom NFTs, designed by the web3 fashion community DIGITALAX, will be airdropped on Valentine’s Day as a reminder to urge DeFi liquidity providers (LPs) to protect the tokens they love and practice Safe DEX.
Bancor has been developing innovative liquidity products since its launch: Bancor V1 introduced the first automated market maker (AMM) in 2017, while the current Bancor V2.1 addresses Impermanent Loss, a common issue in DeFi plaguing users who deposit their assets in AMM liquidity pools. When Impermanent Loss occurs, it can cause the cumulative value of the pooled tokens to be worth less than simply holding the assets in the user’s wallet. Roughly 50% of users suffer negative returns due to Impermanent Loss, a recent study found.
Bancor’s “Safe Staking” solution offers single-sided liquidity and Impermanent Loss protection, allowing users to earn higher yield with less risk. In 2021, LPs earned over $250 million on Bancor in tokens like ETH, WBTC, LINK, MATIC, SNX and more, with APRs reaching between 40–60%.
Bancor contributor Nate Hindman said: “Staking in DeFi liquidity pools is not a passive income strategy. It is a risky trading strategy that can lead to heavy losses. Bancor is the only DEX offering token holders and DAOs real passive income through its novel Impermanent Loss protection model. The DEXLoverz collection aims to bring awareness of Impermanent Loss to DeFi users and remind them there’s a safe way to stake at Bancor.”
Holders of DEXLoverz will get access to exclusive benefits, events and utilities on Bancor in the future. Initially, holders can stake their DEXLoverz on the DIGITALAX platform to earn rewards.
Bancor’s upcoming protocol update, Bancor 3, is in the works and will make Impermanent Loss protection even easier and cheaper to use, so users can earn more while doing less.
Practice Safe DEX now. Check your Impermanent Loss at IL.WTF and stake safely on Bancor.
DEXLoverz Twitter Giveaway
To celebrate Bancor’s NFT Drop, we are giving away 10 “DEXLoverz” Condom NFTs to 10 lucky winners.
Campaign Period: Monday February 14, 11:00am EST — Monday February 21, 11:00am EST
To participate:
- Like and Retweet this twitter post
- Comment with the token project you love the most
- Follow us on Twitter (@Bancor)
10 winners will be selected at the end of the campaign period in a lucky draw. Winners will be contacted via Twitter DM.
Users MUST own a web3 wallet (e.g., Metamask) and provide a wallet address to receive the NFT.
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About Bancor
Bancor is the only decentralized staking protocol that allows you to earn on your favorite tokens with single-asset exposure and 100% protection from Impermanent Loss. Launched in 2017, Bancor was the first DeFi protocol. Today, it generates millions in fees per month for depositors, offering up to 60% APR on tokens like ETH, WBTC, LINK, MATIC, AAVE & more. Bancor is owned by its community as a decentralized autonomous organization (Bancor DAO).
