Hello DerivaDex Community,
I wanted to create a topic in the forums to share a proposal
that I brought forth in the Bancor DAO to whitelist $DDX with 100K $BNT trading liquidity. This will allow $DDX holders to stake in the DDX-BNT pool (if the proposal passes) single-sided and also receive impermanent loss protection. The 100K $BNT trading liquidity means that with $BNT at a price of ~$3 that this will open up roughly $300K of DDX staking capacity and if the pool fills up completely then it will be roughly $600K in depth.
The proposal is set to go live for voting in the Bancor DAO on Sunday (12/19/21). It would be great for any DDX community members to show support for this proposal. Note, if you are a $BNT holder (have voting power in the Bancor DAO) you can vote on snapshot when this goes live.
For anyone not familiar with Bancor, there are two key features that differentiate it from other DEXes:
- Single-Sided Exposure: LPs can provide liquidity to a pool with single-sided exposure, either in an ERC20 token (“TKN”) or in BNT.
- Impermanent Loss Insurance: Impermanent Loss Insurance accrues over time, by 1% each day, until 100% protection is achieved after 100 days in the pool. There is a 30-day cliff, which means that if a liquidity provider decides to withdraw their position before 30 days passes, they’d incur the same IL loss experienced in a normal, unprotected AMM. If an LP withdraws any time after 100 days, they receive 100% compensation for any loss that occurred in the first 100 days, or anytime thereafter.