Ferrum Network Joins Forces with Bancor
About Bancor
Bancor is a decentralized liquidity protocol that offers a simple and safe way to trade crypto and earn a yield on your favorite tokens. The protocol is made up of a series of smart contracts designed to pool liquidity and perform automated trades with no counter-party. Users deposit their tokens on Bancor in exchange for trading fees and liquidity mining rewards. Unique to Bancor is the ability for users to maintain single-asset exposure and protection from impermanent loss while earning yield. Bancor generates millions in fees for liquidity providers per month, offering up to 60% APR on tokens including ETH, WBTC, LINK, AAVE & more. Bancor is owned and operated by its community as a decentralized autonomous organization (DAO).
What does this integration entail?
After passing a vote from Bancor Network’s DAO with flying colors, we are proud to integrate
with Ferrum. There’s a multitude of elements involved in this collaboration so let’s dive into them.
Solving Impermanent Loss
One of the biggest qualms that investors have when providing liquidity to DEXs in their favorite tokens is a little something called ‘impermanent loss’… and often times it’s not so little. The notion of impermanent loss puts folks in an awkward position. On one hand, you want the token that your providing liquidity for to perform well but on the other if it outperforms whatever it’s paired with you risk losing a substantial amount of the principal.
Bancor Network has decided to do something about this. Through their innovative single-sided liquidity pools, Bancor has been able to eliminate the risk of impermanent loss… and we at Ferrum jumped at the opportunity to be one of the many beneficiaries of this innovative solution. They’re proud to say that Ferrum has integrated with Bancor to provide impermanent loss protection for staking FRM on single asset liquidity pools!
What does this mean?
✅ You can now add FRM liquidity using FRM alone in the Bancor Single Asset Staking Pool
✅ Earn trading fees in FRM with zero risk of impermanent loss
✅ Purchase FRM on bancor.network and any trading fees will go to fellow FRM holders who are staking in the pool, unlike centralized exchanges where the fees go to third-party market makers.
👉 Check out this tutorial to learn how to stake your FRM on Bancor 👈
“Impermanent loss has become something that investors are willing to accept. But it doesn’t have to be. Bancor’s innovative solution to solving one of crypto’s biggest dilemmas should be adopted on a massive scale and we’re here to encourage that. We’re excited to join Bancor on their journey and facilitate in the mission of eliminating impermanent loss.” Ian Friend — COO and Co-Founder at Ferrum Network
Bancor Network Becomes a Ferrum Preferred Partner DEX
For obvious reasons, they have chosen to declare Bancor as Ferrum’s preferred partner DEX on Ethereum… and this isn’t just a baseless declaration. As most of you know, Ferrum conducts a substantial amount of FRM buybacks. As part of a new initiative that they’ll be sharing more details on in the coming days, we will be conducting their buybacks exclusively through their preferred partner DEXs. Bancor is one of these!
Bancor Joins the Iron Alliance
Ferrum Network is proud to have Bancor as a part of Ferrum’s Iron Alliance. They expect this to generate a huge amount of leads for Bancor when seeking out other quality projects to whitelist on Bancor’s DEX.
“We are thrilled to see the Ferrum Network offer token holders a safer and simpler way to earn high yield on their FRM via the newly whitelisted FRM pool. We look forward to the FRM community utilizing Bancor for trading and staking, and working with the Iron Alliance to bring Bancor’s single-sided pools and impermanent loss protection to more token projects.” — Nate Hindman, Head of Growth at Bancor
In Conclusion
From giving their community the ability to provide single-sided liquidity without risk of impermanent loss to conducting buybacks via Bancor to bolstering the Iron Alliance with one of the longest standing and solid projects in the space, they believe this is just the beginning of a long and fruitful relationship.
Stay tuned!
Very truly yours,
The Ferrum Network Team
