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Single-Side Staking
Bancor supports Single-Sided Staking for any listed asset.
Bancor natively supports Single-Sided Staking of tokens in a liquidity pool. This is one of the main benefits to liquidity providers that distinguishes Bancor from other DeFi staking protocols.
Typical AMM liquidity pools require a liquidity provider to provide two assets. Meaning, if you wish to deposit "TKN1" into a pool, you would be forced to sell 50% of that token (the token you believe in, hold and want to continue holding) and trade it for "TKN2". When providing liquidity, your deposit is composed of both TKN1 and TKN2 in the pool.
This "dual-sided" staking process also exposes liquidity providers to price changes which can result in Impermanent Loss.
Bancor Single-Side Staking changes this completely and enables liquidity providers to:
  • Provide only the token they hold (TKN1 from the example above)
  • Maintain full price exposure to TKN1 only
  • Be protected against Impermanent Loss
  • Collect yield from trading fees and liquidity mining rewards
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