On-chain liquidity protocol, Bancor has announced today that LEND, the native token of Aave, will be a Bancor V2 launch pool.
Bancor enables automated, decentralized exchange on Ethereum and across blockchains while Aave is a decentralized, open-source, and non-custodial protocol for money market creation on the Ethereum blockchain.
Through the new development, LEND holders would be able to provide liquidity and earn a share of the pool’s trading fees once the Bancor V2 pool goes live; thus, complete maintenance of their exposure to the token will not be interrupted.
The Bancor’s V2 solution will come with incredible features that will fit in lapses of existing automated market maker (AMM) solutions. The company explained this saying,
While existing automated market maker (AMM) solutions require liquidity providers to split their holdings into multiple reserve assets, Bancor’s V2 solution gives LPs the ability to maintain 100% exposure to LEND, mitigate impermanent loss and also benefit from 20X liquidity amplification.
According to the announcement, the development was powered by Chainlink, hence to achieve the stated features, the LEND pool will make use of the decentralized price feeds of Chainlink’s LEND/ETH and BNT/USD.
One of the first
Presently, the Bancor V2 code is still undergoing formal verification and auditing. The project said, LEND will be among the first pools to go live on the new system once the Mainnet is released, and this will happen once the public bug bounty prior to its Mainnet release is completed.
As the launch date is approaching fast, Bancor said it would conduct an AMA session on the Aave telegram session in preparation for it. The AMA will hold next Tuesday, August 4th, at 10:00 AM EST, and any question regarding the functionality of the pools and the process of providing liquidity will be answered. User guides on liquidity provision will also be shared before the launch date.
“We are thrilled with this collaboration, and look forward to having the LEND community participate in the early phases of Bancor V2,” says Bancor.