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?