Bancor v2 announced, brings automated market maker liquidity pool

Bancor v2 has been announced and this will bring myriad changes over the existing Bancor v1 that has been live till now. The major change is for the liquidity providers.

Bancor is one of most popular decentralized crypto exchange for exchanging Ethereum’s ERC20 tokens and V2 is an important release.

Until now, AMMs required liquidity providers to maintain exposure to all tokens in their reserves. Bancor V2 lets users stake with hundred points symbol% exposure to a single token.

Below mentioned features solve four key issues that act as hurdles for widespread use of AMMs – exposure to impermanent loss and multiple assets; high slippage due to capital inefficiency and opportunity cost of providing liquidity. All of these features will be opt-in upon creation of a new AMM.

Bancor v2 feature list as mentioned here.

* A new automated market maker (AMM) liquidity pool integrated with Chainlink price oracles that eliminates the risk of impermanent loss for both stable and volatile tokens.
* Provide liquidity with 100 percent exposure to a single token
* A more efficient bonding curve that reduces slippage
* Support for lending protocols

Technical details, documentation and open source code will be released in 2nd quarter of 2020.