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The $BNT price is hitting all-time-highs relative to $vBNT
Why?
Because more & more users are borrowing against their staked $BNT by selling their $vBNT for other tokens on the network.
This demonstrates the tremendous demand for leveraged liquidity on Bancor.
Why?
Because more & more users are borrowing against their staked $BNT by selling their $vBNT for other tokens on the network.
This demonstrates the tremendous demand for leveraged liquidity on Bancor.
LPs who sell their $vBNT on http://bancor.network are effectively taking an interest-free loan against their staked $BNT, with zero risk of liquidation.
There are risks You need the same number of $vBNT to unstake your $BNT.
If the $vBNT price rises, you’ll need to buy it back at a higher price.
To be profitable, revenue earned w/ your borrowed tokens must be of greater value than the $vBNT needed to retrieve your stake.
Meanwhile, the #BancorVortex burns $vBNT with every trade on the network
This creates a flywheel effect
As volume rises, $vBNT burning accelerates, increasing both TVL & the protocol's lending capacity, while decreasing the circulating supply of $BNT https://blog.bancor.network/vbnt-burning-is-live-cd814c2b07fa
This creates a flywheel effectAs volume rises, $vBNT burning accelerates, increasing both TVL & the protocol's lending capacity, while decreasing the circulating supply of $BNT https://blog.bancor.network/vbnt-burning-is-live-cd814c2b07fa
Since going live, week-over-week $vBNT burning volume has increased more than 5X and continues to grow with rising volume and as new pools join the network.Learn more in our latest progress update: https://blog.bancor.network/bancor-progress-update-april-2021-35fb95656267
The current mechanics of #BancorVortex are just the beginning
We've only scratched the surface of what’s possible with single-sided liquidity on Bancor
Caption contest! RT the 1st tweet of this thread w/ a caption tied to the GIF
The top 5 captions each win 10 $BNT
We've only scratched the surface of what’s possible with single-sided liquidity on Bancor Caption contest! RT the 1st tweet of this thread w/ a caption tied to the GIF The top 5 captions each win 10 $BNT
