Nexus Mutual Joins 30+ DAOs Adopting Bancor’s DAO Treasury Management Solution
Protocol Yield Uniquely Protected by Bancor Single-Sided Staking
- Nexus Mutual DAO will execute the single largest treasury deposit on Bancor this week
- Bancor is emerging as the preferred DAO Treasury Management solution for DAOs seeking to build sustainable decentralized liquidity in their native token.
- The protocol’s automated Single-Sided Staking system lets DAOs provide liquidity and earn passive income in their native token fully protected from the risk of Impermanent Loss.
- Bancor is now the largest source of decentralized liquidity for major tokens on Ethereum like LINK, SNX, BAT, ENJ, wNXM & more.
- Leading DAOs recently deposited liquidity on Bancor including UMA, Paraswap, KeeperDAO, BarnBridge & WOO Network DAO.
- 30+ DAOs plan to stake treasuries and offer rewards on the protocol’s upcoming new version, “Bancor 3”.
Nexus Mutual will execute the single largest DAO treasury deposit on Bancor this week, joining dozens of DAOs that have recently staked treasury funds on Bancor.
The deposit of over $2.2m wNXM comes as a growing number of top DAOs and token projects allocate funds on Bancor, including UMA, Flexa Network (AMP), Paraswap (PSP), KeeperDAO (ROOK), Harvest Finance (FARM), Request Network (REQ), Instadapp (INST), WOO Network DAO (WOO) & more.
Bancor is emerging as the preferred DAO Treasury Management solution to generate Protocol-Owned Liquidity that is protected from Impermanent Loss. Depositors, who earned over $200m last year, use the protocol to provide single-sided liquidity and earn yield on over 100 integrated tokens with 100% protection from Impermanent Loss.
The protocol’s automated “Single-Sided Staking” system is optimally designed for DAOs and long-term token holders seeking a “set and forget” passive income strategy in their protocol’s native token.
As a result, Bancor has become the largest source of decentralized liquidity for major tokens like LINK, SNX, BAT, ENJ, wNXM and more. Average annual yields on Bancor have ranged from 5–60% in recent months. 30+ projects plan to provide liquidity and incentivize pools on “Bancor 3”, the protocol’s upcoming new version.
Nexus Mutual founder, Hugh Karp, said: “Bancor doesn’t require any maintenance, is battle-tested and will ultimately drive higher income to our DAO and community due to there being no Impermanent Loss. We’re able to fund our pool with wNXM-only liquidity and attract loyal token holders as long-term liquidity providers without needing to sell tokens or issue incentives.”
Nate Hindman, Contributor at Bancor, said: “We are very excited to have Nexus Mutual join the growing list of projects building sustainable decentralized liquidity for their tokens on Bancor. Both Nexus and Bancor are focused on designing decentralized solutions for risk-averse users seeking safe and reliable access to DeFi.”
Since liquidity provided on Bancor is fully protected from impermanent loss, users are less likely to flee pools after incentives expire. This facilitates sustainable token liquidity supported by a diverse array of holders, rather than a token’s liquidity being controlled by professional trading firms or “mercenary” yield farmers, who are more likely to farm and dump earned rewards and trading fees.
DAOs and token projects stake funds on Bancor in order to:
- Build healthy decentralized liquidity in their native token
- Generate Protocol-Owned Liquidity without selling tokens
- Earn safe and reliable protocol income while keeping treasury funds protected from Impermanent Loss
- Coming in Bancor 3: Enable auto-compounding rewards that deepen token liquidity from day one
Learn about:
- Bancor DAO Treasury Staking: Why is “Healthy Liquidity” important for DAO Treasury Management
- Bancor 3
About Bancor
Bancor is the only decentralized staking protocol that lets liquidity providers earn trading fees with single-token exposure and full protection from impermanent loss. In 2017, Bancor invented the first automated market-maker (AMM) liquidity pools. Today, it generates millions in earnings per month for depositors, offering up to 60% APR on tokens like ETH, WBTC, LINK, MATIC, SNX & more.
About Nexus Mutual
Nexus Mutual is a decentralized discretionary mutual where members come together to share risk. The protocol’s 8000+ members earn crypto yields in a much safer way by protecting them against new and evolving risks in DeFi such as technical failures, oracles attacks and hacks.
