Bancor's new liquidity feature means token-holders can earn staking fees

Decentralized liquidity network Bancor Protocol has launched its long-awaited staking liquidity facility.

The provision enables users to safely store their assets in liquidity pools, known as Bancor Relays, enabling third parties to perform token conversions with minimal slippage.

Announcing the news, Bancor spoke of creating a system that unlocks the sort of user incentives "Which have historically been reserved for institutions and exchanges." Staking liquidity essentially gives token-holders a passive income, while bolstering the overall health of the decentralized network.

The on-chain liquidity pool model pioneered by Bancor has since been adopted and emulated by a score of subsequent projects, with varying degrees of success.

Through introducing staking liquidity for users, the Bancor team hopes to generate broader community participation and to increase its share of the burgeoning DeFi market.

For users interested in contributing liquidity to Bancor network, a detailed guide.

Liquidity for big and little projectsOne of the most compelling propositions of Bancor Protocol is that it enables small projects to obtain liquidity from day one, incentivizing users to own project tokens in the knowledge that they can exit into more liquid cryptocurrencies as and when required.

To date, over 150 projects have integrated with Bancor, enabling the non-custodial token exchange to be completed directly through the Bancor Protocol.

Fees for Bancor Relays currently stand at around 0.1-0.3 percent, which liquidity providers can earn on each trade.

There are also plans to introduce community staking to EOS-based relays, as Bancor seeks to further distribute its liquidity protocol and to bring the benefits of decentralized token exchanging to a broad array of participants.