The user experience staking in DeFi liquidity pools is as follows: You want to earn interest on the tokens you own. You deposit the tokens in a liquidity pool, and your money facilitates trading and earns fees from traders. Your tokens may go up or down in price - that volatility encourages trading which generates fees. But that same volatility can also incur value loss in your principal deposit ("Impermanent Loss"). Because as your tokens move in price, they can be automatically sold at a discount, which can result in you losing money instead of earning.
With Bancor, we designed a Single-Sided Staking system that protects your holdings no matter how your tokens move in price, so you can earn higher interest on your deposits with less risk.
Deposit the token you love: No more 50/50 split; deposit only one token and earn with 100% upside exposure, single-sided.
Protect your principal: 100% protection from Impermanent Loss.
Auto-compounding fees: Trading fees are automatically re-added to your deposit, compounding your gains.
Rewards: Earn Liquidity Mining Rewards that are auto-compounding, instantly liquid and fully protected from Impermanent Loss.