Bancor has just launched a new decentralized exchange, Carbon, bringing easier automated on-chain trading.
Carbon is bringing unprecedented control and automation
Bancor’s new decentralized exchange, Carbon, is now live and ready for traders to bring in their trading strategies.
After losing investors’ trust, decentralized exchanges (DEXs) are regaining their preference over centralized ones. However, DEXs are not without their issues. One of these is the concentrated liquidity model that Uniswap V3 popularized.
The model required liquidity providers (LPs) to provide liquidity in a continuous price range which can be high-risk and capital-intensive. In addition, LPs could lose profits that could arise outside the specific price range.
Carbon will allow users to create a single concentrated liquidity position that will allow them to buy and sell in separate intervals, whereby it automates “swing trading.” Hence, LPs can profit from price fluctuations without constantly monitoring the market or adjusting their liquidity positions manually.
Through the change Carbon is making, trading on DEXs will be more accessible to experienced traders and new traders by reducing the barrier to entry. In addition, it will reduce capital intensiveness while trading.
Carbon will also let users make automated trading strategies through custom on-chain limit and range orders. Meanwhile, as they happen on-chain, orders cannot be reversed once executed and can only be adjusted on-chain.
DEXs are competing for dominance
The Carbon launch has come when DEXs are gaining popularity in the crypto market. Its launch is a sign that innovation is still occurring in the DeFi space.
Bancor launched its first DX in 2017 and has since remained a leader in DeFi solutions. The platform has developed new DEX models for more capital efficiency, such as liquidity pools. Its latest product will further strengthen its position in the DeFi sector.
Meanwhile, while Uniswap has been dominant in DEX, other DEXs, such as Bancor, Curve, and Sushiswap, are gaining traction by introducing new and improved features.