Now Live on Base!
Bancor expands beyond Ethereum and onto its first L2!
Kickstarting the New Year with big news! Two major Bancor developments are making their debut on their first L2. The Arb Fast Lane Protocol and the smart contracts at the heart of Carbon DeFi are now operational on Base, signaling a new chapter for the Bancor ecosystem, and liquidity providers and traders on Base, a popular Ethereum Layer 2 using Optimism’s technology stack.
The strategic decision to license the smart contracts powering Carbon DeFi mark a significant turning point for the project. This move laid the groundwork for a multi-chain deployment and enabled Velocimeter, the first 3rd party DeFi protocol to utilize Carbon DeFi’s contracts, to spearhead the introduction of sophisticated orderbook-like functionalities on Base. Velocimeter’s “Graphene” protocol empowers Base users with specific trading tools which are not available on conventional DEX systems.
Alongside Velocimeter’s deployment of Graphene comes Bancor’s deployment of The Arb Fast Lane. This first-of-its-kind, open-source, and permissionless arbitrage trading bot is already integrated with an array of secondary liquidity sources on Base, including Graphene. The Arb Fast Lane bridges Graphene-created markets with their environment, which supports efficient order execution. Moreover, the relatively low levels of understanding and technical knowledge required to use the Arb Fast Lane compared to conventional approaches effectively decentralizes arbitrage trading. It opens the doors for anyone to search for, and execute an arbitrage trade in onchain markets.
This revolutionary approach not only makes arbitrage more accessible but also improves market efficiency for all participants. Those who partake in the protocol earn nearly 50% of the arbitrage, with the remainder fortifying the sustainability and growth of the Bancor ecosystem.
Inaugural Wave of Integrations
- Graphene
- Velocimeter
- Uniswap v3
- Balancer
- PancakeSwap v2 and v3
- SushiSwap v2 and v3
- Aerodrome
- Alien Base v2 and v3
- Base Swap v2 and v3
- SwapBased v2
- Scale Exchange
Dr. Mark Richardson, Bancor Project Lead
“Velocimeter’s launch of Graphene represents a fundamental change in the liquidity landscape for Base. Users of the chain benefit from improved transparency, with more sophisticated onchain liquidity and trading solutions, bolstering an already burgeoning DeFi ecosystem. With support from Bancor’s Arb Fast Lane Protocol to facilitate efficient market development and broaden the scope of what it means to be a DeFi participant, I am confident that the community on Base will enjoy the new flexibility on offer.”
The Essence of the Arb Fast Lane
Since its inception, the Arb Fast Lane has experienced substantial upgrades, representing a continued effort to improve its performance and utility.
- Navigation of complex triangular and polygonal trades involving multiple tokens and various decentralized exchanges
- Significantly reduced search times– enabling swift arbitrage, enhancing efficiency, and the protocol’s competitive edge
- Self-financed flash loans fill the void when flash loans aren’t an option on preferred Layer 2 platforms, enabling users to take control and operate the bot in a self-funded mode.
- 10x faster speeds marks a significant leap in the Arb Fast Lane’s performance, dramatically enhancing its speed and accuracy in detecting and leveraging arbitrage opportunities.
- Universal exchange compatibility allows for a wider spectrum of DEXes, offering extended support to forks of Carbon DeFi, Uni v2, and Uni v3, not only broadening its reach but also significantly enhancing its functional capabilities.
- Integration of the latest Python 11 version injects an extra dose of speed and efficiency into the protocol.
- Revamped token price calculation algorithm leading to sharper arbitrage calculations and a significant performance enhancement
- Wrapping and unwrapping gas tokens in order to improve coverage
Powered by Carbon DeFi
Licensing the use of the smart contract code for Asymmetric Liquidity and Adjustable Bonding Curves allows Velocimeter, through their launch of Graphene, to offer the Base community a multitude of innovative order types and trading strategies.
- Limit Orders: This classic tool enables traders to set exact buy or sell prices, acting similar to a centralized exchange. No trading fees or gas fees on filled orders.
- Range Orders: A standout feature exclusive to Carbon DeFi — enables trades within specific price ranges, ideal for scaling in/out of a position. For example, “I want to sell ETH from $2500-$2700”.
- Recurring Orders: Carbon DeFi’s exclusive feature streamlines trading by linking buy and sell orders, automatically rotating your tokens between them, similar to the way a trading bot or grid trading would, simplifying complex scenarios and maximizing on market volatility. It enables continuous buying low and selling high, allowing for token accumulation and profit compounding.
- Overlapping Liquidity: The newest feature allows you to create concentrated liquidity positions within any price range in a gas efficient manner. In contrast to prototypical concentrated liquidity models which have preset fee tiers, overlapping liquidity on Carbon DeFi allows its creators to choose their own spread (AKA Fee).
Expanding Horizons
The integration of the Arb Fast Lane and Carbon DeFi’s smart contracts into Base marks a significant step forward in the DeFi technology available to Base’s users. This move aligns with Bancor’s ambition to enhance the experience for liquidity providers and traders everywhere with the fruit of cutting-edge innovation.
Here’s to automation and innovation — Stay safe, stay savvy, and as always, happy trading!
For more on the Arb Fast Lane Protocol and to become an integral part of its ecosystem:
Make a plan. Set your orders. Let Carbon DeFi do the rest.
Orderbook-like Features on Base with Graphene
For additional information on Bancor technologies, or obtaining a license of your own, please reach out at contact@Bancor.network.
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.
