Bancor launches Carbon DeFi on Sei v2 to address inefficiencies in decentralized exchanges with advanced features like zero slippage, miner extractable value (MEV) attack resistance and versatile order types.

Decentralized finance (DeFi) has made significant strides in bringing financial autonomy to the masses, but it still grapples with a host of inefficiencies. Current decentralized exchanges (DEXs) often leave traders feeling like they’re navigating a prehistoric marketplace.

Imagine trying to buy concert tickets without a clear price, facing disappearing offers and encountering hidden fees that erode your profits. This is the frustrating reality for many DeFi traders today. Several specific issues contribute to these frustrations:

  • No on-the-fly adjustments: Many DEXs lock traders into their initial decisions, making it difficult to react to rapid market changes.
  • Vanishing limits: Limit orders can be automatically nullified when markets retrace, leaving traders without their desired trades.
  • Surprise slippage: Unpredictable slippage can significantly increase the cost of trades, akin to agreeing on a price for a pizza but ending up paying for a full meal.
  • MEV sandwich attacks: These attacks are like someone cutting in line and taking your fries. Malicious actors front-run and back-run trades , exploiting transaction mechanics to secure profits at the expense of others.
These limitations highlight the need for more advanced trading solutions within the DeFi ecosystem. Enter orderbook-like DEXs, which aim to merge the control and accessibility of centralized exchanges with the transparency and decentralized nature of DeFi .

Addressing common challenges in DeFi trading

The Sei v2 launch of Carbon DeFi , an orderbook-like DEX from Bancor, aims to solve the issues of traditional DEXs with its flexible intent-based system. Sei is a layer-1 blockchain designed to optimize trading and improve the user experience in DeFi. Sei v2 enhances these capabilities with speed, security and scalability improvements, making it an ideal environment for innovative DeFi solutions like Carbon DeFi.

The future of DeFi just landed with Sei v2, the first parallelized EVM! @Bancor is proudly planting its flag and claiming its spot in this exciting new frontier!

Visit https://t.co/ZU1jMftwnK , NOW LIVE!
• limit orders
• range orders
• 24/7 auto buy low, sell high recurring… https://t.co/ff0m35drKz pic.twitter.com/hAqDTRU1kB

— Carbon DeFi (@CarbonDeFixyz) May 27, 2024
  Sei v2 provides a fertile ground for Carbon DeFi’s features to be fully utilized. By leveraging Sei v2’s infrastructure, Carbon DeFi integrates an array of features that enhance the trading experience :
  • Zero slippage: Carbon DeFi ensures that traders get exactly the price they expect without unexpected cost increases.
  • MEV sandwich attack resistance: The platform protects traders from manipulative tactics that exploit transaction timing.
  • Versatile order types: Carbon DeFi includes onchain limit orders, range orders and automated recurring orders, which allow for continuous buy low, sell high strategies akin to grid trading or a trading bot .
  • Concentrated liquidity 2.0: Featuring custom fee tiers, no tick constraints, auto-compounding fees (also known as spread/profit margin) and the ability to adjust positions dynamically without the need to withdraw and redeposit, this feature saves users time and gas fees, making it capital efficient.

Users can adjust orders and customize fee tiers on Carbon DeFi. Source: Carbon DeFi

These capabilities are made possible through Bancor’s latest innovations, Asymmetric Liquidity and Adjustable Bonding Curves, which provide the underlying technology for this trading platform.

Unlike traditional liquidity pools that require equal-value deposits of two assets, asymmetric liquidity allows users to provide liquidity with differing amounts of each asset. This flexibility enables token projects, whether DeFi blue chips or memecoins, to bootstrap liquidity with solely their own token.

Adjustable Bonding Curves enable custom price adjustments, allowing for more efficient price discovery and better alignment with market conditions. 

Expanding DeFi trading across blockchain ecosystems

Bancor has been at the forefront of DeFi innovation, launching one of the first automated market makers (AMMs) in 2017 and introducing concentrated liquidity in 2020. With Carbon DeFi, Bancor aims to reinvent DeFi, bringing asymmetric liquidity and an orderbook-like DEX with a built-in solver system and chain-wide arbitrage to the cutting edge.

Various order types are included in the Carbon DeFi application. Source: Carbon DeFi

In addition to Sei v2, the arbitrage framework and the smart contracts powering Carbon DeFi are currently deployed on multiple Ethereum Virtual Machine (EVM) chains, including Ethereum, Base, Fantom, Mantle, Blast and Linea. Looking ahead, Bancor aims to develop this technology further and expand its reach across promising blockchain ecosystems. The goal is to make DeFi trading mainstream with powerful and user-friendly models.

By addressing key issues in decentralized trading, Carbon DeFi aims to create a seamless, efficient and secure trading platform free from third-party dependencies such as oracles and keepers. Its deployment on Sei v2 signals a shift in how we engage with DeFi, potentially setting new standards for innovation and accessibility in the industry. This advancement could drive broader crypto adoption and catalyze further innovations in DeFi, strengthening its impact on the global financial ecosystem.
 
Learn more about Carbon DeFi

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