Why 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 analyzed in detail the specific principle of impermanent loss protection of bancor and its impact on the additional issuance of BNT. The cost of impermanent loss protection of the bancor protocol is highly correlated with token price fluctuations. For details, please refer to the previous analysis article https://x3finance.medium.com/how-much-will-bnt-pay-for-impermanent-loss-protection-24da9cae38dd

Taking BNT-USD as an example, from April 3 to June 18, the cost of impermanent loss protection calculated in BNT is:

That is to say, in just over two months, for the BNT-USD liquidity pool, bancor needs to issue an additional 2.48 times to compensate for the impermanent losses of single-sided liquidity providers. It is conceivable how much BNT holders have to bear selling pressure. Based on the above data analysis, it is not difficult to understand why the decline of BNT during the same period is significantly greater than that of other similar tokens, such as sushi and uni. Therefore, it is difficult to cope with the violent market volatility by inflation tokens to compensate the impermanent loss.