Bancor launches new DEX protocol boasting increased profitability and MEV-resistance

Quick Take

  • Bancor is launching a new automated DEX that claims to increase profitability.
  • It also claims Carbon is MEV-resistant.

Bancor, a decentralized ecosystem centered around on-chain trading and liquidity, launched an on-chain protocol that aims to make automated trading on decentralized exchanges easier and more profitable.

Called Carbon, the new tool lets users perform automated trading strategies via custom on-chain limit and range orders, Bancor said in a statement. Because they take place on-chain, orders are irreversible once executed. However, they can be adjusted on-chain.

Bancor also claims Carbon is "resistant to MEV [maximal extractable value] sandwich attacks." Sandwich attacks are when a bot identifies a pending user transaction and submits a transaction with a higher gas price to buy or sell the same cryptocurrency just before the user's transaction, causing a price change. The bot then executes another quick transaction to buy or sell the cryptocurrency — effectively taking advantage of the change.

Bancor's Carbon vs. Uniswap V3

Juxtaposed against Uniswap V3 — the latest and most-efficient iteration of the leading decentralized exchange — Carbon allows users to create a single concentrated liquidity position that buys and sells exclusively in specific price ranges.


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With Carbon, trading ranges for purchasing and selling can be established above and below a specified price, depending on a user's prediction of where a particular token will be traded. This automates the "swing trading" procedure for any conventional ERC20 token.

For instance, if a trader anticipates that ether will hover between $2,000 and $2,300 in the near term, they can create a Carbon strategy to automatically buy ether within the $2,000-$2,100 range and sell it within the $2,200-$2,300 range.

Backtesting has demonstrated a 2-3.4 times profit enhancement compared to traditional concentrated liquidity provision methods, according to Bancor.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Adam is the managing editor for Europe, the Middle East and Africa. He is based in central Europe and was a managing editor and podcast host at the crypto exchange OKX's former research arm, OKX Insights. Before that, he co-founded, which he elevated into one of the leading crypto media brands at its peak as the editor-in-chief. Earlier, he served as the editor-in-chief at Before joining the blockchain and crypto industry, he worked for, and He tweets via @XBT002 and can be emailed at [email protected].


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