The move comes after the team observed large sales of Bancor tokens.one of its main features called impermanent loss protection. The DEX cited large sales of Bancor tokens for its action.
This impermanent loss comes into play when the price of any two tokens supplied together to any liquidity pool diverges. Impermanent loss occurs when the value of liquidity provider 's position is less than what LP would have had if they didn't invest in the liquidity pool and just held the assets in their wallet instead.Bancor subsidizes it by paying out newly minted Bancor tokens as rewards.
To protect the BNT token from getting further depreciated in value, the team decided to temporary halted IL rewards, before adding that those will be be reactivated after the market stabilizes.
vishal4c It's all scams IMO.
vishal4c Really, did all the owners go broke?
vishal4c removed soon
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