Bancor V2.1 Single-Asset Staking

Hi all, forgive me if this has been explored before.

Bancor v2.1 provides single-asset staking, so idle could put WETH or WBTC or stables in Bancor’s impermanent loss protected pools, and there is not BNT required to do this. Bancor covers IL on a vested basis - after 100 days in the pool, any impermanent loss that occurs on the trading pool (this happens when the prices of the paired assets diverge, and happens on every dex), will be insured and paid back to the idle finance bot upon withdraw of assets. You can always withdraw before 100 days, at 30 days its 30% coverage, 45 days is 45% coverage and so on. So this feature makes Bancor much more like AAVE or COMP in that you can’t lose tokens that are staked, as long as you are in the pool for long enough.

However, I think Bancor v2.1 provides better returns than AAVE or COMP

As you can see, WBTC generates about 20% on swap + rewards APRs at the moment, tjhis is quite typical, and I’ve seen it be higher than that.

So although this strategy might have a longer time horizon, I think could be a good hedge with less volatility. I hope I helped clear up the common misconception that BNT is not required with Bancor v2.1

Bancor v2.1 is not new, its been live for over 6 months and I think its risk profile matches other services integrated with idle. What do you think?


One other thought - have you thought about approaching the Bancor governance with a whitelist proposal for IDLE? Not all pools on Bancor have whitelist status (whitelist means the IL protection is activated). The governance so far only votes for whitelisting on reputable projects. I’m not sure if IDLE would make it but it would be worth a shot. Recently wNXM and NDX and MPH88 and MATIC and ROOK communities have worked to get whitelist status on their token, but ALSO Liquidity Mining rewards which means the effective APR on these pools on the token side is over 60%! Again, no BNT required, the goveranance proposals generally include about 250k to 1M BNT to be minted on the new whitelisted pool. Only IDLE needed.

So my thought is that any IDLE accrued on this strategy could also be put in a new IDLE whitelisted pool on Bancor v2.1 to further compound the gains! xToken is doing this right now and many people are starting to buy xBNT instead of BNT and staking themselves.


the devil is always in the details… it started in a nice way… but then those 100 days “lock” :thinking:
How can we project APYs ?! I am used to have my funds and APY available and updated realtime.


Ah but you can always withdraw before 100 days with limited IL protection, so not locked no.

Also, projecting the APY should be same as COMP or AAVE. Look at historical and extrapolate?