Bancor To Unlock BNT Liquidity Mining Rewards for AAVE LPs

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Bancor To Unlock BNT Liquidity Mining Rewards for AAVE LPs

Decentralized liquidity & trading protocol Bancor announced that it will soon unlock BNT rewards for AAVE liquidity pools. Once $400k in AAVE tokens are staked, the platform will automatically release liquidity mining rewards via the native BNT token. As a reminder, the liquidity mining program is one of Bancor’s latest incentives for bringing liquidity and users to its platform.

Bancor continues to grow as its liquidity mining program released last month has significantly increased the project’s value. Since the day of the announcement on November 16, Bancor grew from $20 million to $82 million by the end of the month.

According to data from DeFi Pulse, the protocol reached an all-time high in Total Value Locked on December 30 with $134 million in locked collateral.

As per the original plan, Bancor will release liquidity mining rewards for each cryptocurrency once users stake a certain amount of liquidity.

Being one of the largest DeFi tokens in the market, AAVE is also included in the newest program. As a matter of fact, there are only 7 major projects which get the chance to reward users with huge rewards.

For AAVE to release rewards via BNT tokens, holders have to stake tokens worth $400,000 in total. However, users will have to wait for a long time given that AAVE is far away from reaching its goal. At the time of writing, stakers have barely reached even $200k of the targeted amount.

At the moment, it seems that the AAVE LPs have reached a bottleneck as users are unable to deposit more tokens. Due to Bancor’s LP design, a staker needs to deposit both AAVE and BNT tokens to participate in a pool. Since holders have locked too many AAVE tokens and too few BNT tokens, they are unable to proceed further.

Bancor users stake 50% of AAVE rewards target within only two days

Bancor has selected the AAVE token only recently for its BNT liquidity mining program. The news was announced on December 28 along with which Bancor released a guide on how to stake and earn AAVE on Bancor v2.1. Per the original tweet, the decentralized exchange will also unlock one million BNT tokens for impermanent loss insurance.

Since the token is live on the platform for only two days, it is surprising to see that users have already staked almost 50% of the required $400k. Both teams might have taken a break during the Holidays but the interest of investors and users has not faded at all.

AAVE’s latest news is that the team plans to bring changes to the project’s design. As Defiye reported last week AAVE intends to redesign its interface and bring many changes to its UI and UX.

The designers have noted that the new changes are not permanent. In fact, they will change as long as the community seeks a different design.

While the update is purely aesthetic in nature, AAVE fans were still happy to see the teamwork hard on the project. But while the developers have released several images of the new design, they have not revealed when users will have the chance to see the update’s release.

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Marko Mihajlović

Marko is a content writer passionate about cryptocurrencies, blockchain technology, geopolitics, and information security. After an internship at Cointelegraph in 2018, he decided to pursue writing about the field of decentralized technology full-time.

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