Bancor Version 3 Launched via Mainnet Bancor, the prominent decentralized finance protocol Bancor, has announced that its v3, which is called Bancor 3, will be launched. Six months have passed since the project revealed the details of its features.

According to the official blog post, Bancor’s latest version is focused on encouraging broad and sustainable involvement in on-chain liquidity markets by simplifying passive liquidity provision in automated market-maker (AMM) liquidity pools. Mark Richardson, Bancor’s Product Architect, released a statement following the development. “Bancor has spent the past several years creating the equivalent of high-yield savings account for DeFi: Deposit your assets, sit back, and earn. By helping token projects and their users safely and simply tap into DeFi yields, Bancor 3 creates robust and resilient on-chain liquidity markets that drive healthy token economies.” Version 3 was first announced by Bancor in November 2013. The three-tiered launch includes — Dawn — the beginning of Bancor 3. This phase addresses any issues in the protocol version before it. It will also set the stage for the subsequent steps — Sunrise and Daylight.

Bancor noted that the strategies used by token projects to provide long-term liquidity have been ineffective so far. The blog stated that token holders are reluctant to give their assets to liquidity pools because of the risk associated with Impermanent Loss (negative returns) Subsequently, a major chunk of liquidity mining reward programs “end up in the hands of mercenary yield farmers who hop from pool to pool liquidating earned rewards into their preferred asset,” thereby leaving the token projects stranded. Bancor stated that the main goal is to return DeFi liquidity to DAOs and token holders. Version 3 has a new protocol architecture that includes Omnipool, unlimited single-sided stake to generate liquidity and yield in one token. It also features auto-compounding earnings via Chainlink Keepers integration. There are also impermanent loss protection mechanisms and revamped tokenomics. According to the team, V3 has attracted over 30 token projects as well as DAOs like Polygon (MATIC), Synthetix SNX), Brave(BAT), Flexa(AMP), Yearn) (YFI), Enjin [ENJ], WOO Network (WOO), Nexus Mutual (wNXM), and Yearn (YFI). The protocols are offering seed liquidity on the network or providing liquidity incentives with the help of Bancor’s new customizable Auto-Compounding Rewards system.

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