Jul 28, 2022Why is the deficit of BNT still widening after pausing impermanent loss protection?The trend of cryptocurrencies has been picking up recently. BTC has risen by 35%, ETH has risen by 87%, and BNT has also risen by 30% from the bottom. However, the deficit of BNT’s impermanent loss protection is still expanding. …Impermanent Loss2 min readImpermanent Loss2 min read
Jul 24, 2022Why is the deficit of Bancor V3 so much worse than V2?Bancor, as the star project of ICO in 2017, created a new era of AMM, but it was surpassed by the rising star of uniswap. Facing the competition of uniswap, Bancor tried to attract lost customers with impermanent loss protection. Bancor launched the V2 version with impermanent loss protection first…Impermanent Loss2 min readImpermanent Loss2 min read
Jul 10, 2022What was the best strategy for whales providing single-sided liquidity on Bancor?Recently the pioneers of AMM and impermanent loss protection have been in huge trouble. Their impermanent loss protection has led to a huge deficit, over $40 million at its peak, and still has a deficit of $34,242,036 today. In the process, some people want to ask what was the best…Impermanent Loss2 min readImpermanent Loss2 min read
Jul 3, 2022Does BNT hyperinflation for impermanent loss protection just happen in a bear market?BNT recently suspended impermanent loss protection, causing users lose 50% of their tokens providing single-sided liquidity to Bancor, and some people blame the phenomenon entirely on the bear market, even saying “ This is happening because of the bearish market This wouldn’t be a problem if the market was bullish”…Impermanent Loss2 min readImpermanent Loss2 min read
Jul 2, 2022The loss of BNT impermanent loss protection is even larger than the loss of market price fluctuationRecently, bancor as the pioneer of AMM and impermanent loss protection has been in huge trouble with huge deficits over $40 million at its peak due to hostile market conditions. As we all know normal impermanent loss is just only 20% even with 80% price down, which is why the…Impermanent Loss2 min readImpermanent Loss2 min read
Jun 26, 2022Bancor bears sustained permanent loss rather than impermanent lossBancor is not only a pioneer in AMM, but also a pioneer in providing impermanent loss protection, and has made outstanding contributions to the development of DEFI. However, bancor’s impermanent loss protection has suffered a huge deficit due to the recent malicious market trend. The author has published a number…Impermanent Loss2 min readImpermanent Loss2 min read
Jun 25, 2022Why did bancor make a decision to pause impermanent loss protection?Recently bancor made a decision to pause impermanent loss protection due to the recent market crash. As a result, some defi protocols have to remove liquidity from bancor’s single-sided liquidity mining. But why did bancor choose to suspend impermanent loss protection at this time? In fact, last month, the author…Impermanent Loss2 min readImpermanent Loss2 min read
Jun 19, 2022Is the impermanent loss of Curve V2 as computable same as uniswap V3?Curve V2 is the biggest competitor of uniswap V3. We know that the impermanent loss of uniswap V3 can be calculated mathematically, and some people want to know how to calculate the impermanent loss of curve V2, and even ask if curve V2 will have impermanent loss? As long as…Impermanent Loss2 min readImpermanent Loss2 min read
Jun 19, 2022Comparison of liquidity distribution between Uniswap V3 and curve V2In the last article, we theoretically deduced why the slippage of uniswap V3 is smaller than that of curve, but another question that what is the actual liquidity distribution of the two protocal? When adding liquidity to uniswap, we can see the following liquidity distribution diagram. What would the liquidity…Uniswap V32 min readUniswap V32 min read
Jun 12, 2022Why is curve’s slippage larger than uniswap V3?In the previous article, we compared the slippage difference between curve and uniswap V3 through data. We can find that under comparable conditions, the slippage of uniswap V3 is smaller than that of curve, but some people want to know why. So today we will start from the technical principles…Uniswap V33 min readUniswap V33 min read