The Bancor Network is a decentralized finance (DeFi) protocol that has recently garnered the attention of the market for its innovative take on digital asset trading without the need for an exchange. With open-source liquidity pools that serve as endpoints for automated market making, the network aims to provide liquidity to medium and small-cap coins by incentivizing users for creating and providing liquidity to pools of these coins.
We at Poolz believe that this is an excellent opportunity for the Poolz community to trade and earn $POOLZ on Bancor. So, in this article, we dive into the process of staking on this novel network.
Staking POOLZ on Bancor: A Step by Step Guide
The Bancor Network follows a simple, beginner-friendly process for staking, tracking, and claiming rewards on the platform.
Depositing on Bancor
1. Go to Bancor’s list of pools on https://app.bancor.network/pools
Here you can find the list of all available liquidity pools on the Bancor Network.
2. Scroll down or search for the POOLZ liquidity pool.
3. Click on the blue [+] button to provide liquidity to this pool.
4. Select the amount of POOLZ that you would like to stake on the platform. Note that currently, there is space available for 28,330 POOLZ.
5. Then click on the stake and protect button at the bottom. If you’re a first-time user, Bancor will ask you to approve token spending.
6. Once approved, your wallet will ask you for confirmation and when the gas fee is paid to the Ethereum network, your POOLZ tokens will be successfully staked.
Tracking Investments on Bancor
The Bancor Network provides a user-friendly tracking dashboard that lets liquidity providers (LPs) keep a watch on their investments and rewards.
You can access this dashboard at https://app.bancor.network/portfolio
At the very top of the dashboard, is the stake box and reward box. These two boxes show the performance of your liquidity, the rewards earned, and the amount that you can claim at any given time.
The rewards box has a claim button that allows users to withdraw their tokens and rewards into their wallets with ease.
Benefits of Staking on Bancor
Given Bancor’s innovative nature, the platform provides substantial benefits to liquidity providers. Some of these benefits are quite unique to Bancor. Firstly, Bancor allows LPs to earn trading fees and rewards in the token they’ve staked. This is an excellent opportunity to increase your POOLZ holdings. Along with this, LPs also have the opportunity to earn $BNT and vote on BNT rewards.
Bancor’s most differentiating feature, however, has to be the fact that it supports single-sided staking. This means that in a pool consisting of $BNT/$POOLZ, LPs can choose to provide liquidity to either of the tokens or both. For reference, platforms like Uniswap require LPs to provide liquidity to both tokens in an equivalent amount. This unique approach reduces entry barriers to liquidity mining. Moreover, Bancor is one of the few networks that evades impermanent loss. This means that if the value of your POOLZ token doubles, you can still claim its full worth along with rewards.
We believe that these features make Bancor Network an excellent platform for our community to the most of their idle liquidity and earn significant rewards in the process.
Stay tuned to this space for further updates.
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 stake their tokens in exchange for trading fees, liquidity mining rewards, and voting rights in the Bancor DAO.
Unique to Bancor is the ability for users to stake and maintain single-asset exposure and with protection against impermanent loss. Bancor generates millions in transaction fees for its liquidity providers and BNT holders per month across 1000s of tokens including ETH, WBTC, LINK, MATIC, FARM & more.
