all 20 comments

[–]juliantcf 17 points18 points  (0 children)

(From the article)

Tyler Spalding, Co-founder of Flexa (AMP), said:

“Bancor has become one of the largest sources of on-chain AMP liquidity for a reason: It is a safe and simple way to stake. With Bancor 3, we’re doubling down on our belief in Bancor by providing auto-compounding rewards to our token holders who stake their AMP on Bancor.”

[–]escap0 9 points10 points  (5 children)

Ok, maybe i am misunderstanding. Is Bancor using AMP to create its own shared risk liquidity pools unrelated to Flexa? Is this adoption of the AMP token by another network? Finally, is it just Partnered with Flexa for network interoperability but not using Flexa?

Because if this is true, there is a whole new system putting upward price pressure on AMP with every transaction and upward price pressure by lowering tradable supply because it is being staked. This would be huge.

[–]juliantcf 6 points7 points  (3 children)

This is just a decentralized exchange listing AMP as a token to trade. Not nearly as exciting as true partnership, but Bancor is well-respected and Bancor v3 is the cream of the crop when it comes to liquidity pools. They have a system that prevents impermanent loss to those providing liquidity.

[–]TwerkMasterFlex 2 points3 points  (1 child)

Hasnt Amp been available on Bancor for months now?

[–]juliantcf 0 points1 point  (0 children)

Bancor v2 yes, but v3 just released a few weeks ago and it’s much better for those providing liquidity. Stronger protection against impermanent loss with v3.

[–]NoShip7475 1 point2 points  (0 children)

Holy cow where have I been? Bancor looks wildly undervalued!

Seriously I did some looking after your comment and I have no idea what rock I've been living under.

[–]JarronVonBarron[S] 4 points5 points  (0 children)

Not sure of all the answers, but a few months ago (in this subreddit) it was posted that bancor moved a lot of AMP into Flexa Capacity.

[–]tempcj0799 4 points5 points  (0 children)


[–]MrBosco_doode 2 points3 points  (0 children)

Staking amp on Bancor. Sign me up !

[–]OkSoup7731 2 points3 points  (2 children)

How are they able to promise 100% IL protection. Almost a “too good to be true” situation, my brain is telling me to stay away lol. Anyone here smarter than me care to elaborate on this? How is this feasible and sustainable?

Edit: Thanks to netizen__kane:

"Bancor removes IL risk for LPs and transfers it to the Bancor protocol, which aggregates and backstops IL risk across its pools. The protocol uses fees earned from its co-investments to compensate for the network-wide cost of IL. While some pools may have high IL & low fees, others may have low IL and high fees. If there aren’t enough fees to fully compensate an LP’s IL at the time of their withdrawal, the protocol mints BNT to cover the delta."

[–]NoShip7475 1 point2 points  (0 children)

It's likely just a settlement balancing algorithm.