Impermanent Loss, Crypto’s Silent Killer, Threatens the Core Tenets of DeFi: Bancor
Disclaimer: The text below is a press release that was not written by Cryptonews.com.
Zug, Switzerland, 22nd November 2021,
One of the original creators of DeFi is aiming to fix one of the industry's most pressing problems.
When Bancor launched the first-ever DeFi liquidity pool in 2017, the project’s founders saw a tragic flaw in their invention: That when a token rises in price, investors are prone to lose money, fast. The issue, known as “impermanent loss”, costs users billions in crypto gains each year. Today, more than $20 billion staked in liquidity pools is affected.
Bancor released a solution in late 2020 that fully protects users from impermanent loss by insuring against the risk at the protocol level. Now, one year later and with over
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