Bancor’s approach to dealing with impermanent loss on decentralized exchanges might have significant implications for idle altcoin capital.
Bancor has released a status report for its v2.1 decentralized exchange upgrade, covering the performance of its decentralized exchange over the last three months.
According to the document, the total liquidity increased by almost 100%, resulting in the platform earning about $1.12 million in cumulative swap fees.
Bancor’s report noted that the fee earnings were more than five times the cost required for impermanent loss compensation for liquidity providers.
Indeed, impermanent loss management was a major focus of the v2.1 upgrade, as noted by Cointelegraph back in October 2020.