Liquidity quickly left Bancor exchange

Liquidity quickly left Bancor exchange


2022-07-26 01:01:40

After suspending the “Limited Impermanent Loss (IL)” feature, Bancor was met with a lot of criticism from the community. In addition, recent data is not very positive for this project.

Liquidity quickly left Bancor exchange

TVL continuously dropped

After the liquidity crisis broke out in early June, Bancor suspended the “Limit Impermanent Loss” feature. The project explains that this step is necessary to protect the Bancor community, especially after Celsius repeatedly withdrew liquidity from the DEX because of liquidity and debt-related issues.

>> See more: Bancor discontinues the feature “Limit Impermanent Loss” – Twitter community continues to wave

At the time of writing, according to data from Defillama, it is 165 million USD, down ~30% since the project announced the decision to suspend IL Protection.

It is worth mentioning here that most of the other DEXs have recovered in the TVL index in parallel with the market trend. However, Bancor has not yet seen the end of the fleeing wave.

The largest amount of money withdrawn from Bancor (after the IL Protection feature was suspended) came from 2 assets, Ethereum and LINK.

Latest update from the team

This morning, Bancor’s Twitter page also posted the latest updates on many changes in the near future.

“A few changes for the week of July 18, 2022:

Protocol recovery model

Mechanism of burn fee and liquidity optimization

Reassess products and integrate features that generate more revenue

Set up data tracking tables

Deploy the DAO governance model more effectively.”

As can be seen, Bancor is prioritizing the burning of BNT tokens from the amount of fees collected, but the price to pay is that the amount of fees for the liquidity provider (LP) will be reduced.

Synthetic CHK

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