Bancor YFI/BNT Pool

Gauging interest with this post.

Bancor has YFI/BNT pool with impermanent loss protection. You can provide liquidity both one-sided and two-sided (50/50). However, size of the pool is too small.

Proposal is check sentiment in YFI community first and move on with 2 proposals on Bancor forum:

  1. Bump YFI/BNT pool size limit.
  2. Vote YFI/BNT pair in as large cap pair and earn liquidity mining rewards for staking.

This option is superior to what sushiswap is offering – similar rewards with impermanent loss protection on top.

Ideally, after passing these 2 proposals we will have more on-chain locked liquidity for YFI treasury buy-backs.

Ref:

12 Likes

I guess it’s a good idea. I was looking to put some BNT in a pull to enjoy their liquidly mining program. Will be happy to wait and put it in this pull.

BTW: what are the risks ? no liquidity ?

2 Likes

I doubt there are too many more people like me that still hold their ICO BNT…I’d definitely help fill it up if we can get a new limit and large cap for liquidity mining.

I like the idea of supporting more options for dual incentives for YFI holders and other protocols.

4 Likes

Definitely for this. I think as we embark on a time of buybacks for YFI, the greater market liquidity there is the better that will be for everyone.

3 Likes

I support.

Are we considering that as another strategy for yYFI vault?

We can definitely use their one-sided pools for other vaults as well (if the liquidity is big enough). Here’s some current APY due to fees and BNT rewards.

3 Likes

BTW: what are the risks ? no liquidity ?

As always smart contracts risks + inconvenience that full protection is achieved after 100 days.

Are we considering that as another strategy for yYFI vault?

No, cause this would imply we have to hold tokens in yYFI vault for 100 days at least.

1 Like

Early indications regarding recent moves to diversify ecosystem offerings are showing promising results. Building out into more established and proven projects like Bancor makes sense…yearn is currently heavily reliant on new and largely unproven entrants. An IL protected option will only strengthen yearn’s position in the market…YFI/BNT pool should pass vote with flying colors…
From a practical standpoint, this option also serves as a mid-term “lock” (30-90 days) on a bit of float.

2 Likes

After few minors bugs as user of their platform ,
The product is more mature, actually.
I m ok with this pool.

1 Like

isn’t the IL protection entirely based on BNT price though?

Nope if you have full protection you always get back the full value of your holdings (in this case, YFI) as if you held them in your wallet + swap fees.

The nuance is when withdrawing your liquidity some of IL protection may be paid out in BNT, depending on how much YFI is available in the pool. In this case, you can just immediately convert the BNT back to YFI.

Example:

  • stake $100 worth of YFI
  • YFI price 2x & LP stake now worth $200 (ignoring swap fees)
  • LP experienced some IL, but achieved 100% protection
  • when LP withdraws there are not enough YFI in the pool to compensate LP fully in YFI
  • LP receives $170 in YFI and $30 in BNT
3 Likes

@milkyklim @andre.cronje
Yearn community builds a reliable infrastructure, solving the overload problems that have wrecked the fortunes of so many traders, pushing up the standards of integrity in the space, and building out new products.

It radically transformed our ability to cater to institutional, retail clients that want to use smart order routing and algorithmic execution.
Thinking Bnt and the other ones spotted lately are interesting.

2 Likes

The pool might be capped unless more BNT is added just a FYI. Usually the protocol mints BNT if a token (YFI) is added, but I believe in this early phase they may have capped BNT minting temporarily.

Something to keep in mind. Haven’t tried it out myself yet though.

I think franklin is right. Based on what I can see now, for most of the major pools, the limit has been reached for single-sided staking, so someone needs to deposit more BNT into those specific pools or you have to provide double side liquidity, which means that you are exposed to BNT price… unless people are willing that to accept that exposure, else need to find some form of hedging.

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@franklin try it! They have cap on how many YFI you can add simultaneously:

Liquidity mining program:

1 Like

YFI/BNT pool is limited with the amount of BNT it can mint.
which means, in order to stake more YFI single sided, BNT are needed to be staked single sided.
one can always stake both YFI and BNT into the pool and have both tokens protected from imp loss at the process.

1 Like

@franklin
Dont forget the “The Bonus Rewards Multiplier increases the LP’s rewards by 0.25 every 7 days (up to x2)”