Bancor Launches On-Chain Trading Platform Carbon on Ethereum

A new decentralized exchange from Bancor aims to give traders greater control over their liquidity on-chain.

Decentralized exchange Bancor’s new crypto trading platform is now live on the Ethereum mainnet.

In an announcement on Thursday, Bancor unveiled the on-chain trading service targeted at investors who engage in range trading strategies.

2/ With Carbon, you can decide exactly where your liquidity trades.

Buy in one price range and sell in another, on repeat, with a single position.

As the market moves into your ranges, your orders are filled by users trading with Carbon directly, via DEX aggregators or as arbs. pic.twitter.com/zolDLXmodk

— Carbon (@carbondefixyz) April 20, 2023

The release followed a proposal to release Carbon on Ethereum, which passed the decentralized autonomous organization (DAO) vote on Thursday with 100% in favor of the deployment.

The platform aims to combine the merits of centralized trading platforms and the transparency of decentralized automated market makers (AMMs). It will create a single concentrated liquidity position, making orders irreversible on execution, adjustable directly on-chain and importantly, natively resistant to Maximal Extractable Value (MEV) bots.

“Spot trading is completely resistant to the most common form of Maximum Extractable Value (MEV), sandwich attacks,” said the Carbon team. 

Users will also be able to update their strategies in a way that optimizes for efficient utilization of gas, without needing to withdraw and recalibrate their level of liquidity.

Typically, most of the existing liquidity pools offered by decentralized protocols require users to continuously provide liquidity on a continuous range of prices. Meanwhile, Carbon offers users the ability to differentiate between buy and sell ranges.

“The introduction of concentrated liquidity gave liquidity providers the ability to set a specific range of prices where they offer to buy and sell tokens,” said the Carbon team in a blog post.

Some market participants were already singing praises for the new platform just a few hours after it went live. According to one user, who goes by the pseudonym “0xMasterCrypto,” the Carbon protocol would be a “game changer” for liquidity providers and trading for the entire crypto ecosystem.