A user may provide liquidity to a Bancor pool with a single token and maintain 100% exposure to the token. In contrast, other AMMs require LPs to take on exposure to multiple assets. With single-sided liquidity, LPs can stay long on a single asset and collect HODL returns, while earning swap fees and mining rewards.
Swap fees auto-compound in the pool and are paid in the tokens staked, while rewards (discussed below) may be manually re-staked to the protocol in a single-sided fashion to compound yield.
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