I started looking at Bancor years ago, because it had the same name as the world currency John M. Keynes had in mind. Their math fascinated me, and that’s how I got started with the AMM rabbit hole! This episode, we focus on what Bancor V2.1 is.
The Bancor V1 token economics analysis report is about how Bancor works and what the token does.
What is Bancor V2.1?
Bancor has been working on a few improvements, from price slippage issues to impermanent loss. V2 of Bancor was about dynamic weight, which is something really fascinating. But let’s focus on their latest update, V2.1.
V2.1 follows the static 50-50 weight as V1, aka the Uniswap style. The new introduction in Bancor V2.1 is to include insurance for impermanent loss. So you will have ZERO impermanent loss. You get subsidised for any losses sustained. How does that work? Let’s find out in this episode.
We will also cover the supply of $BNT based on the various actions in the ecosystem and how that indirectly affects the price of $BNT.
The video in a couple of weeks will share the full interview with Bancor, and you can listen to me ask them very basic questions and what improvements are there to come. Because we’re all still just learning!
Bancor V2.1
- Quick navigation: 00:00
- Bancor in 60s: 2:22
- What is Bancor V2.1: 3:22
- [Whiteboard Session] Zero impermanent loss and insurance
- Single-sided liquidity pool: 13:44
- Pool ownership: 16:00
- Impermanent Loss: 18:03
- 2 scenarios of impermanent loss: 19:52
- Insurance for impermanent loss: 24:43
- Double-sided liquidity pool 27:03
- $BNT conclusion in V2.1 30:48
- Economics of $BNT token: how $BNT tokens supply and prices are affected: 32:19
- FAQ: 36:47
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EP 29: Token Design and Financial Design of BarnBridge