How To Stake Your IDLE on Bancor
Idle DAO announced that $IDLE is now live to trade and stake on the Bancor decentralised exchange.
Bancor is a decentralised exchange that allows Liquidity Providers (LPs) to stake single assets in a pool and earn trading fees. The BancorDAO community recently voted to whitelist the IDLE/BNT pool with a 200k BNT co-investment, allowing $IDLE holders to stake their $IDLE in the pool and earn trading fees in $IDLE with no risk of impermanent loss. Grow your $IDLE stack simply and safely.
Since Bancor launched its v2.1 in late 2020, Liquidity Providers have been able to provide single-sided. A key feature within the v2.1 release was impermanent loss insurance, which compensates liquidity providers for impermanent loss incurred on their staked liquidity.
- Bancor now supports $IDLE staking
- This allows $IDLE holders to increase their stake in the Idle governance by providing liquidity to the pool and earn more $IDLE
- Bancors v2.1 protects Liquidity Provider from impermanent loss
How does the impairment loss protection work?
The impairment loss protection starts linearly vesting immediately when the $IDLE is deposited into the pool and can be utilized after the 30-day cliff is reached. At 30 days, $IDLE Liquidity Providers will have 30% IL coverage, and the complete impermanent loss protection is activated once the $IDLE token is pooled for more than 100 days. If $IDLE is removed from the pool before 100 days, some impermanent loss could be incurred.
How to stake your $IDLE on Bancor
Staking your $IDLE on the Bancor exchange is straightforward; here are some steps to get you started:
- Visit the Bancor website select the ‘Earn’ button.
- Navigate to the ‘Data’ option on the side menu.
- Search for ‘Idle’ in the search bar.
- Click the ‘+’ symbol to add liquidity.
- Choose the token you want to stake. You can choose to stake either $BNT or $IDLE.
- Input the amount you would like to stake and press ‘Stake and Protect’.
How to unstake your $IDLE on Bancor
- To unstake your $IDLE from the Bancor pool, click the arrow on the right of the ‘My Protected Positions’ section.
- Choose the percentage you would like to withdraw.
- Click ‘Continue and confirm the transaction in the Ethereum wallet.
- Your previously staked tokens should now appear in your wallet.
What is Idle?
Idle is a decentralized rebalancing protocol that allows users to automatically and algorithmically manage their digital asset allocation among different third-party DeFi protocols. You can choose to maximize your interest rate returns through MaxYield strategy or minimize your risk exposure through RiskAdjusted allocation strategy.
What is Bancor?
Bancor is the first decentralized trading protocol, empowering traders, liquidity providers & developers to participate in an open financial marketplace with no barriers to entry. No one needs permission to use the open-source Bancor Protocol.
📰 INFO:
https://idlefinance.medium.com/how-to-stake-your-idle-on-bancor-31745044a54d
