This article was first published on Bancor - Medium
We are excited to announce that OCEAN is among the first tokens to be whitelisted on Bancor v2.1!
Ocean Protocol is a decentralized data exchange protocol that makes it easier for people to publish, auto-price, and sell their data. The recent release of Ocean V3 features datatokens, Ocean Market and IDOs (Initial Data Offerings).
With the whitelisting of OCEAN on Bancor v2.1, users can now stake their OCEAN and earn swap fees while maintaining 100% exposure to OCEAN and with protection against impermanent loss.
This means safer and better returns for liquidity providers, without splitting your OCEAN into a separate reserve asset (like ETH) and without living in fear of price movements reducing the value of your initial stake.
The following chart shows returns from the OCEAN/ETH pool on Uniswap October 23-November 2, 2020. All else held equal, Bancor’s liquidity protection would have increased returns by 42%:
Note that impermanent loss protection starts 30 days after your deposit, at a rate of 30% and gradually increases 1% per day until you reach 100% protection. You can always withdraw your liquidity at any time before that; however, you would be subject to the same risk of impermanent loss incurred in a normal AMM pool.
How to stake OCEAN in a Bancor v2.1 pool:
Step 1: Go to bancor.network and search for the OCEAN pool:
Note: The blue shield to the left of each pool indicates if a pool is “whitelisted” and therefore protected against impermanent loss and available for single-sided staking.
Step 2: View key metrics like “Volume” and “1y Fees/Liquidity” (APY).
Then, click “Add Liquidity”.
Step 3: Under the Single-Sided Protection option, click “Stake and Protect”:
Note: “Space Available” indicates how much BNT or OCEAN can be staked in the ...
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Bancor - Medium