Bancor listing and Smart Yield wallet: Let your BNT work for you and earn a return on your investment!
Content Marketing Specialist
A new week, a new token listing and Smart Yield wallet available in the SwissBorg app!
Our team understands how important it is to let your cryptos work for you, and for that reason, we do our best to list new assets and provide a highly competitive yield rate on them week after week.
On April 28th, Bancor will be added to the SwissBorg app. Its Smart Yield wallet will be available on the same day, allowing anyone with Bancor in their portfolio to start earning 4% p.a. on the asset immediately.
As we believe every investment should be made only after gaining the proper knowledge, we will give Bancor a brief introduction before explaining why and how to activate SwissBorg's Smart Yield on Bancor. So, without further ado, let's get right to it!
What is Bancor?
Bancor's name is a homage to John Maynard Keynes - a 20th-century British economist who came up with the term for his proposed supra-national reserve currency.
The Bancor protocol was launched by Eyal Hertzog, Galia Benartzi, Yudi Levi and Guy Benartzi in 2017, well before decentralized finance or “DeFi” had entered the common vernacular. Exactly this head start is what gave Bancor the ability to launch the first-ever automated market makers (AMMs) and become one of the largest DeFi staking protocols today.
What's even more interesting is the fact that the ownership of Bancor is in the hands of its community, more specifically, its decentralised autonomous organisation - the Bancor DAO.
The idea behind Bancor was to create a blockchain protocol that would facilitate the conversion of different virtual currency coins instantly and autonomously without the need for middlemen or an order book.
Put simply, Bancor and similar AMMs help give liquidity to small-cap or micro-cap crypto coins allowing them to be bought and sold more easily and with lower fees and greater transparency.
How is this achieved? With the help of its on-chain liquidity protocol, Bancor enables decentralised automated exchange on Ethereum with plans to expand to other blockchains supporting smart contracts.
Bancor's “protected” liquidity pools
Bancor's liquidity pools are what allows the protocol to process instant, on-chain trades. These pools can be funded by an unlimited number of unaffiliated users with no limitations on who can contribute liquidity. Users who deposit their crypto assets in the pools do so in exchange for fees earned from each trade that passes through the pool. When a user deposits their tokens in a pool, they receive a receipt of deposit called a “pool token”, which represents their percentage ownership of the pool and accrues interest from both trading fees as well as liquidity mining rewards.
What makes Bancor unique compared to other AMMs on the market is depositors (also known as “liquidity providers”) are fully protected from a complex risk in DeFi known as “impermanent loss” Impermanent loss arises from volatility between paired tokens in a pool, and can lead to a liquidity provider withdrawing fewer tokens than they initially deposited. With Bancor’s Impermanent Loss Protection, liquidity providers can retrieve the exact amount they deposited, plus their earnings from trading fees and rewards.
Another distinctive characteristic of Bancor is users deposit a single token, which is not the case on other AMMs where users are required to lock up pairs of tokens in certain proportions to one another, or sell half their tokens for the paired asset.
Bancor’s novel “Single-Sided Staking”, combined with 100% Impermanent Loss Protection, enables simple, safe and reliable access to high-yield interest in DeFi.
Bancor Network Token (BNT)
BNT, Bancor's primary token, has a CoinMarketCap ranking of #117 and a live market cap of 575,075,453 USD at the time of writing this article.
BNT has an elastic supply based on the minting and burning of tokens.
The current circulating supply of the token is 262,062,154.
Lastly, for the sake of transparency, it's worth pointing out that BNT has seen some sharp price swings over the years, so be sure to do your research and assess if this is an asset fit for your risk preferences before purchasing it.
Bancor 3: The future of the protocol
Bancor is, without a doubt, a project that strives for improvement as well as advancement. Attesting to this is Bancor 3 - a redesign of the protocol that aims to allow users to earn even more with less effort. This redesign and the features it will bring were conceptualised based on the key learnings from the previous year.
The Bancor 3 Beta went live on April 18, 2022.
Once the full release goes live in May, Bancor 3 will serve as the biggest update the protocol has seen.
Here is a short overview of what Bancor 3 has in store:
- Simplified smart contracts enabling reduced staking and trading costs
- Unlimited Single-Sided deposits with Superfluid Liquidity used for market-making and other fee-earning strategies simultaneously
- Instant Impermanent Loss Protection - 100% protection from the moment you deposit
- Auto-Compounding Rewards - re-staking rewards with no need for gas-intensive manual transactions
- Dual-sided rewards - additional incentives offered by third-party token projects in their pools
- Revised tokenomics - a system with more cost-efficiency for Impermanent Loss Protection and additional deflationary pressure on BNT
- Support for multi-chain and L2
- And more
Earning a yield on Bancor with SwissBorg
Getting a daily yield on your BNT and/or other assets sounds amazing but can be very complicated and even risky if you do it on your own.
That is why at SwissBorg, we take traditional yield farming and turn it into a few taps enabling anyone with a yield-eligible asset to start earning a passive return on it.
Bancor Smart Yield wallet benefits
Besides the impressive ease of use, our Smart Yield wallets have many other benefits as well:
- Smart Yield strategy optimiser - your assets get invested only in the lowest-risk platforms thanks to the monitoring and rating of investment opportunities.
- Higher cumulative yield over time - your yield is compounded daily, leading to more earnings.
- Monthly Smart Yield reports - you can keep track of how the Smart Yield program is performing as SwissBorg offers full transparency.
- No minimum investment period.
To start enjoying these benefits, all you need to do is make a deposit of $10. But wait, there is more!
By becoming part of SwissBorg Premium, you can get even more benefits, such as discounted fees on exchanges and a yield boost of 1.5X, 1.75X or 2X, depending on the Premium account option.
Activate Smart Yield on Bancor in minutes
To get your 4% p.a. on Bancor effortlessly, just get the SwissBorg app and complete the following steps:
- Update your app to the latest version
- Deposit, buy or exchange to BNT
- On the Portfolio screen, tap on BNT
- Scroll down, and tap the Yield Wallet card
- Tap Top Up
- Choose how much you would like to add to your yield wallet
- Follow the prompts to start earning a daily yield!
Note that while there is no minimum investment period, redemptions are actioned every 24 hours. Once you ask to redeem funds, they will be transferred to your active account at 8 AM CET the following day.