Launched in June 2017, Bancor was the first ever DeFi protocol and the inventor of automated market makers (AMMs) on the blockchain. AMM pools have since evolved into a core building block of decentralised finance (DeFi), attracting over 30 billion USD in deposited funds across numerous blockchains.
In October 2020, Bancor pioneered the first-ever model for “impermanent loss protection” in Bancor v2.1. This step change in AMM liquidity provision made the act of depositing tokens in an AMM pool safer, easier and more lucrative for everyday token holders. To date, Bancor is the only AMM where users can “deposit and forget” their tokens with full exposure to a single asset and zero risk of impermanent loss. (full medium post here)
Bancor 3 is our biggest proposed update to date. Bancor 3 introduces a new Omnipool architecture that reduces gas costs across the network and increases protocol efficiency at every touchpoint.
Bancor 3 will be rolled out in three distinct phases: 1) Dawn, 2) Sunrise and 3) Daylight. The features listed above will all be released on day one of Bancor 3’s Dawn release.
While the Dawn release addresses key points of friction in Bancor, it is only the beginning and lays the groundwork for what’s to come in subsequent phases (Sunrise and Daylight).