Bancor Drops Condom NFTs To Urge DeFi Liquidity Providers To Practice 'SafeDEX'

Decentralized staking protocol Bancor BNT/USD is dropping its first NFT collection on Valentine’s Day.

What Happened: The NFT collection titled “DEXLoverz” features 1,500 Condom NFTs with varying levels of attributes.

The condom NFTs will be minted on Polygon MATIC/USD and have been designed by Digitalax. They will be airdropped Monday as a reminder to urge DeFi liquidity providers to protect the tokens they love and practice Safe DEX, Bancor said in a press release shared with Benzinga.

The recipients will be active users in Bancor’s decentralized autonomous organization (DAO) and users who suffered “extreme cases” of Impermanent Loss on popular decentralized exchanges like Uniswap UNI/USD.

Impermanent Loss occurs when the price of a crypto asset deposited in a liquidity pool changes. If the price of the crypto changes drastically at the time of withdrawal of funds, the greater the impermanent loss.

A recent study estimate 50% of DeFi users face negative returns as a consequence of impermanent loss. Bancor's "Safe Staking" offers single-sided liquidity and Impermanent Loss protection, limiting the risk that users face. The platform claims that in 2021, liquidity providers earned over $250 million on Bancor with tokens like Ethereum ETH/USD and Chainlink LINK/USD.

“The DEXLoverz collection aims to bring awareness of Impermanent Loss to DeFi users and remind them there’s a safe way to stake at Bancor,” said Nate Hindman, Bancor’s Head of Growth.

Price Action: As of Monday morning, Bancor’s native token was trading at $2.48, down 3.29% in the last 24 hours.