As Bancor’s imaginative and prescient grew, so did its technological improvements. In 2017, Bancor launched Good Tokens, now generally known as LP (“Liquidity Supplier” or “Liquidity Pool”) tokens. These tokens served a mandatory account-keeping function within the system, enabling customers to pool property, present liquidity in decentralized exchanges, and take part within the DeFi ecosystem.
By 2020, Bancor took liquidity provisioning to the following stage with Amplified Liquidity, extra generally known as Concentrated Liquidity. This innovation allowed liquidity suppliers to pay attention their property inside particular worth ranges, making liquidity provision extra capital-efficient and efficient. For stablecoins, specifically, this meant sustaining tighter management over their peg, guaranteeing larger stability and reliability in risky markets.
