ALEPH Listed On Bancor v2.1: How To Stake On Bancor v2.1
Bancor v2.1 launched single-sided exposure & impermanent loss protection to AMM pools which is a crucial breakthrough for the DeFi space. We are honoured for having been selected as one of the tokens to access this exclusive feature!
Think of Bancor v2.1 as a self-custodian AMM like Uniswap and Balancer, except it is single-sided and with impermanent loss protection.
Single-sided exposure means that you can stake in a liquidity pool using only one token — vs having to stake pairs of tokens.
Impermanent Loss (IL) protection means that you do not have this risk of losses present in traditional liquidity pools. Hence increasing your earnings in comparison to traditional liquidity pools.
IL risks are still partly present as clarified by Bancor:
“Note that impermanent loss protection starts 30 days after your deposit, at a rate of 30% and gradually increases 1% per day until you reach 100% protection. You can always withdraw your liquidity at any time before that; however, you would be subject to the same risk of impermanent loss incurred in a normal AMM pool”.
A Bit Of Bancor History
Bancor is a highly regarded decentralized exchange, it is famously known for being involved in the origin of TCRs & Bonding Curves in August 2016. Yes, four years ago! Bancor was always regarded as a special player in the space and crypto-natives inner circles since then.
Fast forward to November 2020, we are now in a post DeFi Summer where Bonding Curves powered AMMs are taking huge market shares from centralized exchanges. Bancor still alive and kicking, releases a single-sided exposure & impermanent loss protection AMM pools feature! Simply amazing.
Step 1: Go to bancor.network, search for aleph and click on “Add Liquidity”.
Step 2: Click on “Stake and Protect”
Step 3: Connect your preferred wallet by clicking on “Connect Wallet”
Step 4: (1) Select the ALEPH option in the dropdown, then (2) type the amount you want to stake, finally (3) click on “Stake and Protect” and confirm.
Your protected liquidity stake will appear in the Protection screen once the transaction goes through (click refresh if you do not see it, it may take a couple of minutes to complete).
This article is strongly inspired from the Single-Sided Staking article from Bancor where you can find additional pointers should you want to flesh out your understanding of Bancor v2.1.
You can still stake ALEPH in Uniswap and Balancer liquidity pools too.
We are a decentralized cloud project. We provide decentralized database, file storage and computing. You can think of aleph.im as a decentralized AWS.
Aleph.im allows decentralized DApps and Protocols to strip off the centralized parts of their stack, achieving a completely decentralized architecture.