All You Need To Know About Bancor Zaps

Bancor Zap is a new method of contributing to Bancor liquidity pools or reserves, powered by the aggregator, that allows users to get exposure to different kind of tokens (e.g ENJ and BNT), by converting any ERC-20 token (e.g ETH) to the liquidity pool token (e.g ENJBNT). It allows users to earn the liquidity pool fees, by adding tokens to its reserves, in a single action, by splitting the user provided token to the specific asset types required by the pool and according to the pool weightage for different underlying tokens (50/50, 30/60 etc.).

🧱 You can now use money legos @1inchExchange @Bancor & #GasToken to zap in/out of a Bancor liquidity pool with any #ERC20 token.

⚡️ Zap with #ETH into the @UnibrightIO pool:

Learn more about Bancor Zaps:— Bancor (@Bancor) April 10, 2020

Previously, if a user wanted to contribute to liquidity pools, for instance say BNT and ENJ, they would have to convert to both tokens, from the token they have (for instance ETH). Now this is taken care of automatically, by the splitter, which converts to both tokens and contributes to the liquidity pools. This simplifies the process massively for users, who can just use the 1inch service, to gain exposure and put their crypto to staking use.

Bancor Zips Process

1inch developed the splitter service 1split, which receives the ERC-20 token (lets say ETH) of your choice, splits the token to your desired liquidity pool’s reserve type (usually two but can be more), distributing the split tokens to its reserve pool (according to its weightage of assets), depositing the tokens to the pool (ENJ and BNT) and minting the liquidity pool token (ENJBNT) and handing them to the user.

The process is repeated again backwards, if the user wants to opt out of the liquidity pool. The splitter service sells the liquidity tokens, for the underlying assets and converts back to the ERC-20 token of the user’s choosing (can be different than the ERC-20 token originally provided for conversion).

Benefits Of Using Bancor Zaps Powered By 1inch Splitter

1inch service makes the whole process simplified and user friendly. Now, users can stake their tokens, without having to delve into the nuisances of conversion to individual liquidity pool tokens and having to consider the liquidity pool weightage for each asset.

1inch splitter uses the gas tokens, which reduces the fees needed by 42% on average. The users can realize the gains, made by the splitting, by checking the conversion of the liquidity token to a token of choice. Also, users can check the liquidity and APR of the pool on 1inch lending service.

Bancor Zaps
Bancor Zaps© Cryptoticker
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