'Bancor' Dex suspends temporary loss protection amid 'hostile market conditions'
DeFi Protocol Bancor
Modified Date:- Published Date:-Categories: Bitcoins
In a June 20 blog post, Swiss-based DEX immediately explained that the ILP pause is strictly a temporary measure to protect the protocol and its users: “[This] should give the protocol some room to breathe and recover. While we wait for the markets to stabilize, we are working to reactivate IL Security as soon as possible. In DeFi, temporary losses occur when a user provides liquidity to a liquidity pool and the proportion of assets deposited subsequently changes, potentially leaving investors with tokens of lesser value. The bigger the change, the more users are exposed to temporary damage. Banker says the problem is that many DeFi projects ignore this issue, eventually resulting in incorrect APR (annual rate of return) numbers reported by some protocols. Elsewhere in the turbulent world of DeFi this week, crypto lenders Babel Finance and Celsius have been forced to halt withdrawals and transfers due to “unusual liquidity pressures” and “extreme market conditions”, echoing the banker, respectively.
Bitcoins, Cryptocurrency, DEX, DeFi, Crypto Lenders, Babel Finance, Celsius, Protocols, Tokens, APR