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Bancor: score, security record and what it is for

60/100SCORE · CMixed record Grade C, fair

Bancor invented the AMM model. In 2022 it suspended the impermanent loss protection that was its main selling point, exactly when providers needed it, which cost it most of its liquidity and credibility. Its contracts were never exploited.

The facts

LIVE SINCE: 2017
TYPE: AMM
CHAINS: Ethereum
SWAP FEE: Dynamic by pool.
AUDITS: Audited.
WHO CAN CHANGE IT: BNT staked governance.

How the score breaks down

security17/30

liquidity11/25

chains8/15

costs12/15

decentralisation12/15

Where it is strong and where it is not

✓ Strengths

The original AMM, predating Uniswap
Genuine onchain governance
No contract exploit on record

✗ Weaknesses

Suspended impermanent loss protection in 2022 when it was needed most
Liquidity has fallen a long way
Ethereum only

Exploit history

2022

Its impermanent loss protection was suspended during the market downturn, leaving liquidity providers exposed to losses they had been told were covered. Not a hack, and a serious failure of a headline promise.

Our read

The 2022 suspension is the lesson here. A protocol promise that only holds while conditions are calm is not a protection. The contracts were never exploited.

BEFORE YOU SWAP

Swap keeps failingSlippage, approvals, taxes and thin liquidity. Revoke approvalsEvery swap leaves a permission behind. Clear them. Gas tokensWhy you need the chain's native coin first. Pick a walletYou need self custody before you can use any DEX.

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