Bancor v3 Progress Update

  • Fee allocation
  • Protocol owned liquidity
  • The invention of new bonding curves
  • The introduction of Carbon DeFi and the simulator
  • The Arb Fast Lane — A First of Its Kind
  • 69 pools permanently closed in a state of surplus

The Bancor DAO and its community have made significant headway on multiple efforts over the past 18 months. The results of these endeavors are becoming increasingly apparent, as evidenced by the closure of 69 pools in a state of surplus. Notably, ten pools in the first two weeks of November, following the earlier closure of 59 others. This period was characterized by relentless innovation, including the invention of new bonding curves which foreshadowed the inception and subsequent launch of Carbon DeFi, the Carbon DeFi simulator, and the conceptualization and development of the Arb Fast Lane. Moreover, the community has actively engaged in voting on and implementing numerous proposals, all aimed at driving the v3 pools into a state of surplus. This period of intense activity and dedication reflects a strong commitment to this objective, advancing the Bancor ecosystem, and building out a comprehensive suite of DeFi primitives.

As the impact of these initiatives becomes evident, exploring the strategic decisions and innovations that have shaped Bancor’s direction over the past 18 months will provide valuable insights.

Fee Allocation

The Bancor DAO has presented numerous proposals aimed at achieving a surplus state for v3 pools. A few of the most significant decisions were the DAO’s votes to allocate all fees accrued from v2.1, v3, and Carbon DeFi towards this initiative.

Protocol owned liquidity

In addition, the Bancor DAO voted in favor of using protocol owned liquidity, or POL, in July 2023, resulting in the passing of the Protocol Owned ETH Spending Proposition [Public Function Method, in October 2023 in which the Bancor DAO approved the sale of 1800 ETH to directly assist in bringing v3 pools into surplus.

The invention of new bonding curves

Bancor has always been at the forefront of DeFi innovation, beginning in 2017 with the invention of two types of bonding curves, including constant product and concentrated liquidity (then referred to as amplified liquidity) pool tokens (known then as smart tokens, or relay tokens), and the AMM. In October 2022, Bancor disclosed their latest invention, Novel Invariant Function and Asymmetric Liquidity Pools, now referred to as Asymmetric Liquidity and Adjustable Bonding Curves.

Introducing Carbon DeFi and the Simulator

Carbon DeFi is a sophisticated onchain trading protocol that provides orderbook-like functionalities, driven by asymmetric liquidity and adjustable bonding curves. It was launched on Ethereum mainnet April 2023 and enables users to develop automated trading strategies through a variety of innovative order types, such as native onchain limit orders, range orders, and recurring orders. A key aspect of Carbon DeFi is its alignment with the objective of driving v3 pools to surplus, as all revenue generated by the protocol is dedicated to this purpose.

Alongside the introduction of Carbon DeFi, the most recent product under the Bancor umbrella, is the Carbon simulator, a powerful tool used for backtesting trading strategies. Anyone may enter specific data, resulting in the comparison of liquidity provisioning strategies using Uni v2-style canonical constant product, Uni v3-style concentrated liquidity portfolios, and a Carbon DeFi asymmetric liquidity portfolio. The simulator has proven a valuable tool in assisting makers in creating their strategies, as the recent announcement by WOO Network states.

The Arb Fast Lane — A First of Its Kind

The Arb Fast Lane Protocol first made its way to the Bancor Governance Forum in February 2023, as a Proof of Concept. The Arb Fast Lane, a pioneering initiative, now represents one of Bancor’s latest DeFi primitives and is a major driver in the overall trajectory of the Bancor Network. This first of its kind protocol is unique in that it offers users the opportunity to engage in arbitrage within the Bancor ecosystem and across various onchain exchanges. As an open-source and permissionless system, the Arb Fast Lane encourages widespread user involvement in arbitrage activities, with half of the profits going to the caller. Importantly, the strategy of redirecting the other 50% of arbitrage earnings back into the Bancor ecosystem serves to bring v3 pools into surplus, bolster protocol revenue, and enhance the long-term viability of its development.

The Arb Fast Lane incentivizes users by waiving the trading fee on v3. While it might appear to be a setback in terms of increasing v3 fee revenues, this strategy has been quite effective. This is particularly noteworthy as it is poised to expand across additional chains, in conjunction with the DeFi protocols who licensed the source code and the right to deploy the smart contracts that power Carbon DeFi. Although the licensed smart contract deployments are not under Bancor DAO management or control, the launch and management of the Arb Fast Lane remain under its purview. Consistently, the earnings will continue to be allocated to driving v3 pools towards a state of surplus.

The Arb Fast Lane saw a significant enhancement shortly after its initial launch, marking its third major advancement. Originally, arbitrage routes across protocols were restricted to concluding in BNT. However, subsequent updates have greatly expanded its capabilities. It now has the ability to perform complex triangular and polygonal trades, involving a multitude of tokens across various decentralized exchanges, recently integrated Balancer and PancakeSwap v2 and v3, and most notably the Arb Fast Lane now allows arbitrage to conclude with any standard ERC20 token. This feature is particularly advantageous, as it ensures that when a v3 pool exists for a given token (TKN), trades are conducted through that pool, directly aiding the goal of moving all v3 pools towards a state of surplus.

Closed in a State of Surplus

The Bancor DAO and its dedicated community have achieved a notable milestone, with their diligent efforts culminating in the successful closure of 69 pools in a state of surplus. All LPs of the below tokens may withdraw their full initial deposits.


In the past 18 months, the tireless efforts of the Bancor DAO and community are yielding remarkable results. This journey of relentless advancements has brought us new bonding curves, the subsequent development of Carbon DeFi, the Carbon DeFi simulator, and the Arb Fast Lane. It has been a period of intense dedication, innovation, and building the Bancor ecosystem. Here’s to continued growth and ongoing progress as the last 14 pools are brought to a state of surplus and Bancor’s discoveries and DeFi primitives continue to expand.

For the latest updates and news about Bancor, please visit:

Bancor v3 Progress Update was originally published in Bancor on Medium, where people are continuing the conversation by highlighting and responding to this story.

Bancor’s Innovative Technology Licensed to Power DeFi Protocols Across Multiple Layer 2s

The right to deploy smart contracts that power Carbon DeFi’s advanced orderbook-like functionalities has just been licensed to multiple DeFi projects, marking a significant milestone for Bancor. The licensing model represents a significant step towards the long term sustainability of the protocol.

Bancor has always been at the forefront of DeFi innovation, beginning in 2017 with the invention of bonding curves, pool tokens, and the AMM — which still remain extensively used across the industry. Licensing the use of the smart contract code for Asymmetric Liquidity and Adjustable Bonding Curves reaffirms their commitment to driving the industry forward while remaining a leading innovator in DeFi.

Deployments are not under Bancor DAO management or control and will be announced independently by the licensed projects as they come online. There are active discussions underway with DeFi protocols to leverage the technology on Base, Arbitrum, Canto, Fantom, Mantle, and Scroll.

By licensing the code for its smart contract technology, Bancor accelerates the presence of its technology on Layer 2 solutions across the industry, giving access to- and benefits of automated recurring limit orders to an entirely untapped market.

Bancor’s Arb Fast Lane Protocol, which allows any user to perform arbitrage between network protocols and external onchain exchanges, will be deployed alongside these new protocols to ensure they undergo efficient arbitrage and order fulfillment. The Arb Fast Lane generates revenue with fifty percent of the arbitrage profits directed to Bancor Protocol with the remaining fifty percent going to the caller.

Dr. Mark Richardson, Bancor Project Lead

“We are deeply honored by the overwhelming enthusiasm that has greeted the latest advancements in our technology. The embrace underscores the collective commitment in our mission to drive innovation and growth and to deliver cutting-edge solutions that empower individuals and organizations to engage with decentralized finance.

As the development of Carbon DeFi continues and the Arb Fast Lane makes its way to L2s, we continue to advance and refine our technology and remain deeply committed to delivering excellence, pushing the boundaries of what is possible in the world of DeFi.

We extend our best wishes for the success of these protocols and are excited to contribute to the advancement of the entire blockchain sector. Should you wish to get in touch regarding licensing inquiries, gaining further insights into Carbon DeFi, or exploring the possibility of licensing our DeFi primitives on your blockchain network, please do not hesitate to reach out. Expressions of interest are most welcome, and I am eager to engage in discussions with you.”

For additional information on Bancor’s technologies, or obtaining a license of your own, please reach out at

Disclaimer: Users are advised to exercise caution and conduct their own due diligence before engaging with any DeFi projects. Bancor does not control the deployments or operations of 3rd parties who license Bancor technology, and although Carbon DeFi has undergone three comprehensive audits, there is no guarantee that the code itself or the protocols using the technology will function as intended. Bancor does not guarantee the safety or security of, and this announcement is not an endorsement of, any protocol.

Bancor’s Innovative Technology Licensed to Power DeFi Protocols Across Multiple Layer 2s was originally published in Bancor on Medium, where people are continuing the conversation by highlighting and responding to this story.

Revolutionizing Arbitrage in DeFi with the Arb Fast Lane Protocol:

Advancements, Integrations, and New Daily Records

The Arb Fast Lane Protocol, a first of its kind, is one of the most recent protocols launched by Bancor. Arb Fast Lane introduced a unique opportunity for any user to participate in arbitrage across the Bancor ecosystem and external on-chain exchanges. The Arb Fast Lane is an open-source and permissionless framework, encouraging a broad user base to participate in arbitrage with 50% of the profits rewarded to the caller. Notably, the approach of redirecting the remaining 50% of arbitrage profits back into the Bancor ecosystem strengthens Bancor’s revenue generation and ecosystem sustainability.

Since its initial launch in March 2023, the Arb Fast Lane Protocol has expanded to include 59 unique callers, experienced significant enhancements and refinements, integrated additional protocols to its network, and achieved impressive milestones in setting multiple daily records.


The Arb Fast Lane Protocol has undergone a remarkable evolution, showcasing substantial improvements and fine-tuning in recent times. Arbitrage trades within the Bancor ecosystem have evolved into highly sophisticated maneuvers, with the Arb Fast Lane navigating complex triangular and polygonal trades involving a multitude of tokens across various decentralized exchanges. These intricate operations not only enhance the protocol’s versatility but also underline its adaptability to the dynamic DeFi landscape.

One of the most notable advancements in this evolution has been the remarkable reduction in search times. This improved efficiency has catapulted its competitive edge to new heights, enabling the bot to seize arbitrage opportunities swiftly and seamlessly.

In addition, the Fast Lane’s flashloan capabilities have significantly expanded. The original Arb Fast Lane only supported flashloans in BNT, however several upgrades have allowed flashloans to be taken in any token on Bancor V3 or Balancer. This advancement decoupled the Arb Fast Lane’s dependency on Bancor V3, paving the way for adding Fast Lane support for Carbon DeFi & other blockchains.

With these enhancements, the Arb Fast Lane Protocol is not only keeping pace with the evolving DeFi space and the ever changing market, but generating sustainable revenue for Bancor, positioning itself as a vital player in the network’s suite of DeFi protocols.


Upon deployment, the Arb Fast Lane was integrated with Bancor v2.1 and v3, Uniswap v2 and v3, and Sushiswap. Plans to integrate additional decentralized exchanges, or DEXes, across the Ethereum ecosystem have since come to fruition. Since March, the Arb Fast Lane has expanded its network to include Carbon DeFi, Balancer v1, and PancakeSwap v2 and v3. The Arb Fast Lane emerges as a pivotal component in bolstering Bancor’s competitive edge, aligning liquidity with prevailing market rates. With the addition of the latest enhancements, it further expands its capacity to identify a multitude of opportunities and execute with heightened efficiency.

Bancor POL Sale

The Arb Fast Lane was successfully integrated to support the Bancor POL sale, which started on [DATE] . As the price offered for tokens in the sale crept towards the market price, the Arb Fast Lane was able to smoothly liquidate the vast majority of tokens owned by the Bancor DAO into more than 1700 ETH.

New Daily Records

On October 5th, a momentous announcement resonated throughout the Bancor community, marking a significant achievement for the Arb Fast Lane. It proudly shattered its previous record for the amount of protocol-earned BNT in a single day, a testament to its growing prowess within the ecosystem and revenue generation capabilities for the Bancor network. Just five days later, on the 10th of October, the enthusiasm continued as the protocol achieved another milestone, another new daily record. With each record set and surpassed, the Arb Fast Lane propels itself into a promising trajectory, one the community is eagerly watching as it continues to rewrite the records of its own success.

Looking to the future, the Arb Fast Lane Protocol holds great promise and anticipation. Its open-source and permissionless framework encourages and rewards user engagement, and with the remaining 50% of profits flowing back into the Bancor ecosystem, strengthens revenue generation and sustainability. As the protocol continues to evolve and its network of integrated DEXes continues to expand, the Arb Fast Lane is poised to further enhance beyond its current capabilities and remain a driving force with the Bancor Network.

We invite users to explore arbitrage using the Arb Fast Lane. Discover how to get started by visiting the Fast Lane Github. Additionally, for any technical inquiries or assistance, a dedicated Bancor Developers Telegram will provide the support you need. To stay up to date current stats, visit the Arb Fast Lane Dune Dashboard.

Revolutionizing Arbitrage in DeFi with the Arb Fast Lane Protocol: was originally published in Bancor on Medium, where people are continuing the conversation by highlighting and responding to this story.

Bancor Network Update

August — September 2023

We are pleased to share some significant news and updates as we continue in our pursuit in establishing one of the most distinguished suites of DeFi protocols within the industry.

Development Updates

ROI Stats

ROI stats are now live for Carbon DeFi’s automated trading strategies! Head over to your strategy overview to view the current ROI for each of your strategies.

Read more →

Carbon DeFi Explorer

Interested in copying the strategies with the most impressive ROI on Carbon DeFi? The brand-new Explorer enables you to search any wallet or token pair and duplicate the strategy of your choice! For more details check out the full announcement.

Read more →

Developments Dashboard

A Carbon DeFi Developments Dashboard is now available as a community resource to keep you informed about all the ongoing developments. We will consistently update development tasks as they are completed and as new priorities arise.

Read more →



Strategy makers can now track their Carbon DeFi recurring limit orders on Zerion.

Read more →


Carbon DeFi has successfully integrated with 1inch Network, a prominent DEX aggregator boasting an impressive DeFi trade volume of over $364 billion to date!

Read more →

Carbon DeFi’s Remarkable TVL Surge

As of September 26th, Carbon DeFi was acknowledged as the DeFi protocol with the second most substantial growth in Total Value Locked (TVL) following the creation of a strategy in the amount of ≈ $402,648.33!

Read more →


Bancor v3

The Bancor DAO voted in support of 15 proposals recently including thirteen proposals split from the discussion Proposal to start sunsetting Bancor v3, The Vortex Bancor 3 Captured BNT, and the Update to POL Migration and Conversion to ETH Proposal.

As a result of the Vortex Bancor 3 Captured BNT proposal, over 1,169,205 BNT was vortexed!

New Low Fees on Carbon DeFi Stable-to-Stable Trades

The DAO approved Custom Taker Fee on Stable-to-Stable Trades Proposal has been implemented. Stable-to-stable trading fees have been slashed to make transactions more cost-effective than ever on Carbon DeFi. While the typical industry fee for stable-to-stable trades hovers around one basis point (0.01%), Carbon DeFi has implemented an incredibly low fee of only 0.001%, 1/10th of a single basis point.

Read more →

Essential Insights

A series of articles by Project Lead, Dr. Mark Richardson, and Senior Advisor, Stefan Loesch, explores onchain trades that render MEV sandwich attacks impossible.

  1. Carbon — The MEV sandwich is toast
  2. The Optimum Sandwich: How to Exploit Blockchain Enthusiasts with Arbitrary Precision
  3. No sandwiches allowed — how to prevent MEV attacks on AMMS
  4. The Forbidden Sandwich: A Theory of MEV-resistant CFMM Transactions

Check out “The Key to Preventing Sandwich Attacks on AMMs”. A special episode of Blockchain Banter highlighting the in-depth research and findings of Stefan and Mark.

Automated Recurring Limit Orders Explained

True DEX Limit Orders: Carbon vs Existing Solutions

Industry Perspectives and Insight

Blockchain Banter has been thriving with three recurring weekly calls on Twitter/X including a Monday Alpha Hour, Tuesday Trading Crypto, and Wednesday DeFi Debates & Hot Takes where an array of influential figures in the industry participate as guest panelists. In addition, Blockchain Banter will resume hosting fellow DeFi projects, engaging in discussions about the industry’s notable challenges, significant advancements, and the continuously evolving landscape.

Stay up to date through Bancor News Telegram. All calls are recorded and uploaded to the Bancor YouTube.

Explainer Videos

💥 The Future of Onchain Trading is Here

💥 The Future of Onchain Trading is Here

Automated Recurring Limit Orders & Carbon DeFi

Grid Trading Explained

Still more to come!

Keep an eye out for updates on The Arb Fast Lane Protocol and Bancor’s ongoing global initiatives!

To get involved and stay up to date:

Bancor Network Update was originally published in Bancor on Medium, where people are continuing the conversation by highlighting and responding to this story.