As the start of Bancor V2The company invites the community to look at the code and Report any vulnerabilities.
On Friday, The project released the code for Bancor V2 smart contractsthat have a variety of improvements that help both users and liquidity providers of the protocol.
At the same time, Bancor is also launching a reward program Bugs to encourage the community to find bugs before launch.
Although third-party audits are also carried out, The reward ensures that the maximum number of people has checked the code for vulnerabilities. Until July 30, bonuses will be increased by 20% to a maximum payment of $ 54,000. The reward will continue after two weeks, but the maximum reward will drop to $ 45,000.
The award is specific to V2 and follows similar programs that started at different times after Bancor was first launched in 2017. Bancor planned to execute him before his security incident in June. Unlike the previous iterations, there is no time or money limit for the reward.
Eliminate temporary losses and more
Temporary losses occur with the liquidity providers of all existing automated money markets (AMM). C.When asset prices can fluctuate widely. This excludes markets like Uniswap or Balancerwhile stable asset markets like Curve You are practically immune.
When prices change significantly, liquidity providers often find that the value of their stake is lower than originally stated. The loss is “volatile” because the price can theoretically return to the previous value and compensate for the loss, but in practice it may not always be.
Bancor V2 uses an oracle to solve this problem to show the current market price. If it detects changes, Automatically adjusts the target balance to the change in value on each side of the fund. Instead of resorting to a 50-50 balance again and again, for example, you could instead temporarily seek a balance of 52-48. This eliminates the possibility of “bad arbitrage that gains value,” as Bancor’s growth manager explained. Nate Hindmanto Cointelegraph.
However, the balance should remain between 50 and 50 over time to ensure that liquidity providers can withdraw the amount they deposited. Various incentives ensure that this is the case, although liquidity providers may have to wait until the system is balanced to use all of their assets.
Also, V2 separates the single liquidity token into two counterpartiesThis allows you to collect commissions while the price is only exposed to one asset.
At the end Bancor users also have the advantage of a better “link curve” that reduces the price drop per unit of liquidity. The combination of these functions could give Bancor V2 a significant advantage over its competitors, at least for some time.
The update is scheduled for late July or early August, Hindman said.
Update: This article incorrectly assumed that Bancor’s decision to offer a reward was motivated by a recent security incident.