New ankrBNB-BNB Crypto pool on Ellipsis

Ankr Team

Ankr Team

December 30, 2022

3 min read

We are excited to announce the official launch of a new ankrBNB-BNB Crypto pool on Ellipsis.

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We will be offering incentives for users who provide liquidity to the new Crypto Pool by offering bribes to locked DDD holders on DotDot Finance to direct additional EPX emissions to the ankrBNB-BNB pool on Ellipsis. This will further boost the incentives of providing liquidity to this pool.

The new Liquid Staking Token: ankrBNB

Ankr made the decision to replace aBNBb and aBNBc with ankrBNB in response to the exploit that affected both tokens. With this, the ankrBNB token becomes the main reward-bearing liquid staking token of the BNB Chain.

All liquidity providers who held aBNBb, aBNBc and BNB in Liquidity Pools received an airdrop of ankrBNB and BNB and were fully compensated (the Ellipsis aBNBb–BNB pool is one example of this). The aBNBb and aBNBc token holders were airdroped the respective amount in ankrBNB and were also fully compensated.

This decision allowed Ankr to safeguard the interests of its users and ensure that they were not negatively impacted by the exploit.

It is also important to note that the exploit in question was not a technical vulnerability in the smart contract code, but rather a social engineering attack. To learn more about this exploit, you can read the Ankr Token Exploit Report at the following link: https://www.ankr.com/blog/after-action-report-our-findings-from-abnbc-token-exploit/.

Why a new Ellipsis Crypto Pool?

As you may know, ankrBNB is the BNB reward-bearing token of Ankr where the redemption ratio increases daily based on BNB staking rewards. At the time of this writing, the current redemption ratio is 1 ankrBNB = 1.0404 BNB. This means that ankrBNB is pegged to the BNB price, but its value depends on the current redemption ratio.

Stableswap pools are specifically designed to maintain a stable peg between the tokens in the pool, typically 1:1. This means that the value of one token in the pool should always be equal to the value of the other token, allowing the pool to act as a stable exchange between the two tokens in a more efficient way. The stableswap pools were better suited for the aBNBb as its was rebase token that had a redemption ratio of 1 aBNBb = 1 BNB.

However, this is not suited for ankrBNB because the redemption ratio for ankrBNB is not fixed as it grows daily based on the BNB Chain Staking Rewards and therefore, the value of the token may not stay pegged at 1:1. In this case, it may be more appropriate to use a different type of liquidity pool that is better suited for handling tokens with variable redemption ratios.

An Ellipsis Crypto Pool is the best solution for ankBNB because it maximizes liquidity by focusing on current prices, concentrating the liquidity, and leading to better exchange rates. When trades occur, the Crypto Pool adjusts its internal price to the area with the most liquidity without experiencing any losses, resulting in an increased capital efficiency.

The Ellipsis Crypto Pool can be accessed at https://ellipsis.finance/pool/0x440bA409d402e25b95aC852E386445aF12E802a0.