Bancor V3 is Grossly Underrated in DeFi

3 min readJun 7, 2022

Bancor V3 is grossly underrated! They’ve built what MIGHT be the greatest innovation in decentralized finance. With some incredible features like…

IL Protection
Auto-compounding
Omnipool
and more

A brief history of Bancor

Bancor is a DEX launched in 2017 with the largest ICO at that time.
They are built on Ethereum and EOS blockchains.
They are the first DEX to use AMMs to facilitate token trades.
They are the first protocol in DeFi

Bancor suffered an attack in 2018, which took the team back to the drawing board. Later in 2020, they announced the launch of Bancor V2. It’s amazing how Bancor has evolved over the ways. Despite the major setback, they’re still championing incredible DeFi innovations. Ladies and Gentlemen, let’s see what makes Bancor V3 different.

Bancor V3 comes in three phases — Dawn, Sunrise & Daylight. We are currently in the dawn phase, and the other two phases will follow much later. Here are the features of the dawn phase:

1. Instant IL Protection

When you stake your assets on Bancor, you’ll get 100% IL protection from day one. There’s no insurance schedule, it is automatic. They have an efficient algorithm that ensures that your assets are safe. There’s also an option for external insurance.

2. Omnipool

The omnipool is the central pool that contains all the tokens of Bancor. No more using fragmented pools to perform different token transactions, it can all be done on one pool. This innovation reduces gas fees significantly.

3. Infinity Pools

Infinity Pools addresses the problem of bottlenecks in a liquidity pool. It gives users the leverage to contribute as much token as they want into a liquidity pool, without having to worry about space. No limits. No Constraints.

4. Auto-compounding

Previously, after gaining yields from your liquidity, you’ll need to withdraw it and re-add it to the pool (if you want). Now, you can auto-compound your rewards and fees. You are increasing your earning capacity and the network’s liquidity.

5. Multichain

Initially, Bancor was built on Ethereum. This means that the transaction gas fees were high. Bancor V3 is lightweight, and they are now multichain. Operating somewhere between ZK rollups, Optimistic rollups, EVM LI Alternative, or Non-EVM. No more high gas fees.

I’m excited about Bancor V3, and its innovations. Big kudos to their team.

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