What Is BANCOR V2? CHAINLINK Integration And Dynamic Automated Market Maker Explained | DEFI

So what is the latest update to the Bancor protocol called Bancor V2? Will Bancor V2 outcompete other decentralized exchanges such as Uniswap, Curve and Balancer? Also why are Bancor V2 pools integrated with Chainlink? We'll be going through all of this in this video.
Bancor is an on-chain liquidity protocol that enables automated, decentralized token exchange on Ethereum and across blockchains. Launched in 2017 with one of the biggest ICOs in the space, the protocol is made up of a series of smart contracts designed to pool liquidity and perform peer-to-contract trades in a single transaction with no counter-party. Users add liquidity to automated market makers (AMMs) in exchange for trading fees, staking rewards and future voting rights in the BancorDAO. If you need a quick recap on liquidity pools and automated market-making you can watch this video.
DAMMs make use of price oracles to determine if the balance between tokens in the pool should be changed. Price oracles such as Chainlink provide external prices to smart contracts in a decentralized and reliable way. They can, for example, provide a current price of LINK/ETH.
A V2 pool is always initialized in a balanced state so that the price offered by the pool ("pool price") is equal to an external reference "market price" provided by price oracles. The V2 pools are designed to always push the pool price to equal the market price.
Liquidity Pools ► • How do LIQUIDITY POOLS...
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[@fullcircle4723]

First real explanation of this I've seen and totally blown away. Will be watching this a few more times. Great job!

[@Finematics]

Thanks!

[@lawstuddd]

You are the best in YT at explaining defi. Great job, my man. Can you do a Balancer Video please.

[@Finematics]

Thanks! Balancer is on the list of videos to make :)

[@poisoner7666]

great content, especially in the world of "ABC to the moon" and "XYZ 1000x" kinda videos... keep it up!

[@Finematics]

thanks!!

[@Finematics]

❓What do you think about Bancor V2? Does it have a chance to compete with Uniswap?
👍Hit the like button if you enjoyed this video
🐦Follow Finematics on Twitter ► twitter.com/finematics
💛Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics

[@marlonahrens7124]

bancor V2 has massive potential

[@theflipside2709]

Great format, visual and succinct & on-point content! So easy to understand. Awesome job!

[@Finematics]

Thanks!

[@NormYip]

Someone introduced Bancor to me about 4 months ago. Now I finally get a better understanding of how this works. Thanks for an excellent video.

[@TylerHardie]

Please cover Bancor V2.1 this is one of the biggest upgrades happening in crypto this year!!!

[@daveodwyer9391]

lol I arrived here from the full video about impermanent loss - almost understood it, but the summary about it in this video made it click. Great content, subbed!

[@Finematics]

Glad it was helpful!

[@xtrabigc]

Appreciate the explanation Finematics! First came to you from your "what is Ampleforth" video, and have since subscribed as well as seen all your videos. I look forward to many more.

[@Finematics]

Thanks a lot!

[@corinlee5352]

@@Finematics I just saw the ampleforth video and it was amazing! If you take suggestions, I'd love to hear your opinion on their newly launched governance token!

[@MegaQuangVinh]

Thanks for the crystal clear explanation. Please do one for Balancer and one for an overall comparisons between different protocols like Uniswap, Bancor, Balancer,...

[@hakonjohnsen1221]

Awesome video. Please do one for V2.1!

[@knottage]

these videos provide so much value!! thank you for the completely unbiased education

[@Finematics]

you're welcome! thanks for watching :)

[@LeandroDaRosaMarques]

beautiful artwork too. thank you.

[@bkkavila8029]

Good at demystifying complex topics in the crypto space. Do you have a video on how Uniswap works?

[@Finematics]

Thanks! My video on liquidity pools is based on the Uniswap model and there are a lot of references to Uniswap there ruclips.net/video/cizLhxSKrAc/видео.html

[@user-ic6mj1rg6z]

very helpful clip, vielen dank.

[@tobiprivat8878]

great! totally underrated content!!

[@guillaumerosselet1303]

Just discovered your channel mate! Top job! 👍🏻 alway good to had a quality channel to DYOR

[@Finematics]

thanks!

[@newchinchin]

Thanks for the video again. I dont see why do we need Bancor in the first place now that we have uniswap,curve etc The need to use BNT tokens to provide liquidity pool is troublesome and adds more risk.

[@imaginingtech9639]

You dont need to buy BNT to provide liquidity you can stake whatever you want.

[@robertjasoncanha]

How the fuck does this not have a million views

[@Finematics]

great question! :)

[@Gvfm1596]

The best explanation ever

[@Finematics]

thanks! check out Bancor V2.1 as it has adopted a different model to the one explained in the video

[@lherfel]

great video

[@Finematics]

Thanks!

[@williambreeze2659]

Thanks for the breakdown.

[@borel2]

great videos, i can't wait until you do a video on the math of amm

[@jeromecorhantos]

Thank you for your work, amazing way of learning!

[@Finematics]

Thanks! Glad it is helpful :)

[@AnkushSharma003]

Big time thanks man !

[@Finematics]

You’re welcome! :)

[@AnkushSharma003]

I am an engineer myself, working for Google. I used to work for a crypto exchange prior to that, given that I have been in this space for a while, I have not seen such easy explanations over the time. Way to go man 👏 👏

[@Finematics]

@@AnkushSharma003 thank you!

[@patricioechenique8820]

Great video and useful explanation! Subscribed.

[@Finematics]

thanks!

[@rusydiumar6696]

Arbitrager comes into play when resulted imparmanent loss? How can we be arbitrager to take this profit?

[@cyberdisco9724]

Thank you so much!

[@malbecm7175]

great explanation. thank you!! my main concern is on the use on LINK how dependent they are on that oracle format. Interesting evolution the concept of DAMM. it just feel that they are well behind some of other projects

[@marktaylor5147]

Great content TYVM

[@Finematics]

Thanks Mark!

[@omidsarayanibafghi222]

Thank you! can you make a video about new KNC and the DMM applied there?

[@bdfxgroup6402]

Good and useful content. Thank you.

[@Finematics]

Thanks! :)

[@ihgnmah]

Since the asset’s price will not increase exponentially due to the integration with price oracles, if large whales came in and drained all the liquidity of one token in the pool, how would the protocol response?
By the way, great video, thank you.

[@panosab]

Excellent video! well done.

[@Finematics]

Thanks!

[@chillrain351]

Great indeed. Thank you. Could you explain how to Arbitrage?

[@Finematics]

Thanks! Yes, I want to make a video on Arbitrage and flash loans at some point

[@MarioToro82]

Please allow me to voice over your videos into Spanish. More people needs to understand this. Will keep your credits. Thank you.

[@MrTwentyvermin]

nos quieremos!

[@rodholden1974]

Hi, can you explain gas fees please?

[@grildcheez1504]

Can someone clarify how changing the weights, reduces impermanent loss? I understand this is the method used but not clear as to how the mechanics reduce it.

[@boiwaif]

I don't know either, I assume it adjusts the amount that is in the currency reserve available.

[@boiwaif]

it's the weighting of the assets provided to the pool, so like the next LP would have to give 54% LINK and 46% BNT.

[@pierreprudhomme9523]

Thanks for the video, why isn't UNISWAP using this method ?
I would like to understand it more but haven't find my answer yet ! I did read on discord that apparently you have Impermanent Loss on Bancor 2 as well but they try to hide it by giving away their token

[@scnullois]

Great content!

[@Finematics]

Thanks!

[@dcftvd]

What is this software that you use? It's great

[@SashaMai]

Hello Finematics, you should have your own watermark on all your videos for your own branding.
Anyways, I am still quite confused how liquidity pools in protocols with no third party oracle are still able to maintain market prices and avoid arbitrage opportunities? It seems most xMM protocols don't use third party oracles.

[@SimonBotswana11]

This looks so much better than uniswap and the other defi exchanges... so why is everybdy speaking about uni and not bancor??

[@HishamPM]

Because the crypto market is very irrational. There are so many crypto investors that lack knowledge. Meme coins such as Dogecoin and Shiba Inu are currently on top 25 by market cap. That is already a proof how irrational the market is.

[@NicholasPool]

When the Cap ist Lüfter wont Chainlink token go up in value?

[@metehan748]

i love your video and i try to understand but no subtitle . just automatic susbtitles exist but some times automatic subtitles are so bad

[@mc-dq6oj]

How does weight reflect fee price you will receive? Does more weight means you get more fees?

[@mc-dq6oj]

What does weight describe? Fees to the LP?

[@rickynave]

1:42 what is he saying? harder to (what) new tokens? Lease? What is leasing a token?

[@Finematics]

He’s trying to say “list” I think

[@trancongnguyen1252]

very nice lol

[@devsutong]

imagine having to do the math to make this possible😯

[@alexleung842]

I thought Bancor V2 also mints new BNTs in certain scenarios

[@Finematics]

It does in Bancor V2.1. This video was released when they announced V2 :)

[@views-cx9eb]

sounds like the narrator is from Malta or Romenia

[@dea8804]

5.000.000 views no, he must be some russian speaking country

[@st4nc4]

I believe Poland.

[@jeremycarroll2370]

20x

[@martincoolman3]

BAL$

[@jk-ml5fb]

i wish it's called DAMN not DAMM