Why was part of my withdrawal received in BNT even though I deposited a different token?

Have more questions? Submit a request

To support Single-Sided Liquidity and Impermanent Loss protection, the Bancor protocol provides BNT to its pools and receives pool tokens in return that accrue fees from trading. These fees are used to compensate for Impermanent Loss (IL) incurred by a user. In cases where the trading fees accrued by protocol-owned pool tokens does not outweigh the IL, part of the user’s IL compensation may be paid in an equivalent value of BNT.

Articles in this section

Was this article helpful?
2 out of 2 found this helpful