This article was first published on Bancor - Medium
What You Need to Know
- You can now borrow against your staked BNT.
- Simply deposit BNT in any whitelisted pool, receive vBNT (similar to a pool token) and swap for other tokens on bancor.network
- You can do whatever you wish with the proceeds from the vBNT sale, including providing “leveraged” liquidity on Bancor to earn more fees & BNT rewards.
- vBNT is required to eventually withdraw your staked BNT from a pool, and you must be using the same wallet you staked with.
- Please use Bancor Vortex carefully and only after fully understanding the risks involved, explained in greater detail below.
- Greg is long on BNT; he has $1M+ worth of BNT staked single-sided in the LINK pool on bancor.network.
- A new yield farming project commences with an attractive APY for ETH deposits.
- Before Vortex, Greg would have been forced to unstake some BNT and swap it for ETH to participate in the project; now he can sell vBNT and keep his BNT cosy in the pools.
More information on Vortex mechanics and the risks involved can be found below. Bancor Vortex video explainer.
Unlocking Your BNT Stake Requires vBNT
When BNT is deposited in a whitelisted Bancor pool, it generates vBNT at a rate of 1:1. vBNT tokens are a special kind of “pool token” that represents the depositor’s part ownership of the pool while offering several additional features, including:
- Vote with vBNT in Bancor governance
- Stake vBNT in the vBNT/BNT pool for a % of its swap fees; or
- Leverage vBNT by swapping it for any token ...
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Bancor - Medium