Bancor reassured its users that the IL protection feature will be reactivated as soon as possible.
Prominent DeFi protocol Bancor suspended its Impermanent Loss Protection program, citing “hostile market conditions” and “manipulative behavior” as the main causes behind the action. Assuring users and investors that it’s only a temporary measure, Bancor noted that all funds on the protocol are secure, and trading remains active on all liquidity pools.
IL occurs in DeFi when the value of the staked assets changes relative to their initial value during the deposit time due to external market conditions. When “Withdrawals performed during this unstable period will not be eligible for IL protection. Users who remain in the protocol will continue earning yields and be entitled to withdraw their fully-protected value when IL protection is reactivated…
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